Clearing part of a loan with Egg Credit Card?

Peardrop_2

We have a car loan with another 3.5 years to run which we are desperate to clear. I have £8 K in savings but the settlement figure is £10.5 K. I was thinking we could use our Egg card (with no outstanding balance on currently) which has the facility to do a balance transfer into our current account to raise the extra £2.5 K and then pay this off over the next 6 months or so.

I can't find anywhere on the website t&c's what the interest rate for this balance transfer would be - would it just be the 16.9% as for purchases or does it attract a higher rate as its a transfer of funds into our current account.

Is this a good idea or am I better off saving up the extra £2.5k and clearing it one go?

TIA

grumbler

Peardrop wrote:

I can't find anywhere on the website t&c's what the interest rate for this balance transfer would be - would it just be the 16.9% as for purchases or does it attract a higher rate as its a transfer of funds into our current account.

Egg Card Credit Agreement (Small print) gives the following definition:

Cash Advance means obtaining cash, foreign currency, travellers' cheques and postal orders, and gambling, using a Card or the Card number.

Hence, balance transfers attract their standard interest rate 16.9% (and 2.5% fee). I guess that 16.9% is higher rate than the rate you have on your loan.

Also remember that:

• You can transfer up to 95% of you credit limit
• Each year, around the time of the anniversary of when you opened your Egg Card, you can get 0% on BTs for up to five months (anniversary offer)

Peardrop wrote:

Is this a good idea or am I better off saving up the extra £2.5k and clearing it one go?

This depends on your loan rate on how long it will take to save £2.5K (or to clear this balance on the Egg Card).