Credit Limit

Potter2011

I have a loan with an outstanding amount of around £7500.00, would it be a good idea to apply for a credit card with a 0% on new purchases deal & pay off the loan over 12 months?

Tixy

Depends on your financial situation and whether you are likely to get a 0% credit card (generally only people with very good credit history and in a strong financial position) that allows super balance transfers (which you would need to pay off a loan) and if you could get such a card what credit limit you would be likely to get (often new cards limits are far less than the £8k or so you would need).

You couldn't use a 0% purchases deal to pay off a loan, you'd need a BT deal that allows you to transfer money to your current account and then use that money to pay off your loan.


Also consider, what APR you are currently paying on your loan, how long you have left to pay and what interest penalty there might be for paying off early, don't forget to include the cost of doing the transfer in your calculations, and work out whether you could pay off the CC in 12months (or the interest free period).

ironlady2022

A 0% purchases credit card will not solve your situation. You need a card which allows a 'super balance transfer' where money gets put into your account so you can distribute to your loan. Your income needs to be very high and also credit rating needs ot be very good. It is VERY VERY difficult for someone to get such a high limit. So even if you do, you may only be able to part pay the loan. You need to check with the loan company of course. What is your income? Any credit cards? Do you owe anything on there?