Can you pay off a loan with a 0% credit card?

Rambo_1

Hi folks,

I have an outstanding loan of 4500.00 and pay interest on this as expected. However, is it possible to transfer a loan dept onto a 0% transfer credit card?

Thank you

ekkygirl

It is possible but sometimes the card provider charges a % for transferring

Poosmate

It is possible but as Ekkygirl says, the CC company will most likely charge a balance transfer fee (it's around about 2.9%-3% nowadays).

If you can pay off the whole £4500 by the time the 0% deal finishes, obviously you'll be saving some interest but you'd need to work out if there are any early repayment clauses with the loan, though your settlement fee may be lower than the £4500 so may cancel out the balance transfer fee.

Also, if you get a 0% credit card will they offer you the credit limit you need?

And another thing, if you don't manage to pay off the whole amount before the end of the deal you may find you will end up paying more interest on it in the long run than if you'd stuck with the loan. Depends on what interest you're currently paying on your loan. But loans are usually lower interest than standard interest rates on credit cards.

Poo

Rambo_1

I understand there is a transfer charge but surely you can continue to transfer to another 0% card if need be. But im still dubious as to how to go about or if the loaner (bank) will allow the transfer. Are there cards that allow you to withdraw cash with no charge and do it this way?

YorkshireBoy

http://www.moneysavingexpert.com/loans/plastic-loans