paying off a loan

tee_pee_2

Any advice on a credit card that I can BT a loan onto and pref fee free?

Moggles_2

You can shift a credit card balance to another credit card. Transferring a loan to a credit card is not so straightforward. Only a few rather special credit cards have this capability. For an explanation, please click on *Super BTs* in the black box at the top of this board.

The risk in paying off a loan this way is that you can't be sure of another 0% credit card offer in X months time when the current 0% deal ends and the interest rate jumps to anything from 13.9 to 23.9% APR or higher. Unless you will have savings to cover a possible shortfall then, I would think again.

Also, you'll need to factor in balance transfer fees which are becoming hard to avoid and check the loan Ts & C's. Some lenders charge an early repayment penalty if the loan is settled in full before the scheduled date.

tee_pee_2

Since the Amazon card fiasco ( ie paying BT fee even though advertised as no fee) I am a bit wary of my own judgement.

The loan is only £1000 and I can pay off 4mths but not sure which cards do a Super BT

gem4

tee_pee wrote:

The loan is only £1000 and I can pay off 4mths but not sure which cards do a Super BT

Egg Money account do balance transfers to bank accounts but it's not fee free, then you could pay off loan.
As mentioned earlier there is usually a penalty for paying a loan off early, although its not usually very much.
Egg only gave me £800 credit limit in January when I opened the account.

tee_pee_2

No early redemption charge but no overpayment option.

mrcow

You can with a Marbles card but it's not fee free. (We got a 9 month 0% with them).

It cost something like 2% but is capped at £50, (so you could well be better off after month 2 or so).

You have to write a credit card cheque (:eek:) but that's the way they do their balance transfers to get into your bank account.

Don't take my word for it though (as my info is about four months out of date) check with them first.

tee_pee_2

will look intot hat one thanks mrcow. Been with Marbles in the past and was very pleased with their service.

tee_pee_2

Firstly I need to ring Nationwide and see how much they will charge me. I have only had the loan 3 wks and not starting paying yet. the interst for the whole duration of the loan is £74. But I don't want the loan hanging over me for 12mths.

mrcow

tee_pee wrote:

Firstly I need to ring Nationwide and see how much they will charge me. I have only had the loan 3 wks and not starting paying yet. the interst for the whole duration of the loan is £74. But I don't want the loan hanging over me for 12mths.

So from your figures I'm calculating that it's only a £2k loan?

In which case I don't know whether swapping to a 0% card is going to save you that much. It will take about 6 weeks for the application to complete and you may also have early repayment penalties from Nationwide (28 days interest from their website).

So you could be looking at only a £25 saving (if a cc is going to charge you a 2% fee), plus you have the hassel of applying for the credit card.

As you say, find out first with Nationwide and see where you stand.

tee_pee_2

I know it would be better for me to leave it, but I just hate things hanging over me. I was pondering today whilst at work whether or not to put to one said the money I usually send to my debt ( but that has now gone ) ie £300pcm and then in 4 mths time ring up Nationwide and get a redemption figure. There is no penalty I have checked the literature and it means I am not faffing around and can enjoy Xmas and sort it out in the New Year.

mrcow

That sounds like a much simpler plan to me and if you are looking at paying it off so quickly, it could well be the cheapest option too.

It would have been better if they simply allowed you to put the £300pm as an overpayment, but on thier web site, they only allow up to £100 per month overpayment, so I guess this applies to you too.

(You could have the whole thing paid off by Jan :j:j)