Can you use 0% balance transers to pay back loans?

Lucinda116

Hi

Please can someone let me know if you can use 0% balance transfers to pay back personal loans or overdrafts??

Thank you

Tixy

Only if the card allows money transfers - which only some cards do - and they tend to charge slightly higher transfer fees - cards that allow money transfers are listed here - http://www.stoozing.com/sbt.php

lisyloo

If you have a card that offers 0% on money transfers then yes. If you card doesn't have this facility then no.
Here's a list.

http://www.stoozing.com/sbt.php

briankelleher

What about talking out the available balance on one card in cash to pay the loan, then transferring that balance to a 0% card?

Tixy

briankelleher wrote: »

What about talking out the available balance on one card in cash to pay the loan, then transferring that balance to a 0% card?

Also a possibility but you have to pay cash advance fees, interest on the cash for the few days between the transfer, a balance transfer fee for the transfer and have to have 2 cards with a sufficent limit.

I'd be suprised if it worked out cheaper than getting a SBT 0% card (assuming the debtor would be accepted for one).

Degenerate

Tixy wrote: »

Also a possibility but you have to pay cash advance fees, interest on the cash for the few days between the transfer, a balance transfer fee for the transfer and have to have 2 cards with a sufficent limit.

I'd be suprised if it worked out cheaper than getting a SBT 0% card (assuming the debtor would be accepted for one).

Could work out OK on a Halifax Clarity or Santander Zero, depending on how big the loan.

Lucinda116

great thank you everyone! my loan is about £4500 - not sure I'll have good enough credit rating to get a card for that much but if I do, do you have any idea how much the minimum monthly payment would be on that amount?

basically i have a loan and I want to go travelling and dont really want to have to pay back the £150 a month while im away so was thinking if I transferred it onto a 0% card then hopefully the minimum payments would be less?

Tixy

Depends on which card you went for - some are as little a 1% plus interest - so on a 0% card that would just be 1%, ie on a transfer of £4500 it would around £47 (to include the BT fee on the balance). Some are 2.5% so that would be around £115 or so.

But getting a new card with a limit large enough to do a £4500 would probably not be easy - presumably if you are going travelling you don't have a ongoing job? if this is the case then its likely to impact on you getting any new credit.