Can I take out a credit card to pay off a car loan

jill36_2

My daughter last August bought a second hand car through a main dealer. She took out their fianance with Santander at 16.5%. She now would like to reduce her out goings and I wondered if it was possible to take out a 0% interest credit card and transfer the balance? Or is it only credit card balances to a new credit card.

ironlady2022

You would need a super balance transfer credit card as the money goes into your account for you to distribute rather than to another credit account. How much has she got left on her loan? Also the 0% period is shorter. how is her credit rating?

SBT123

Hi everyone

I currently have a 2000 overdraft with my graduate natwest account which I max out most months. In june this is turning into a current account and the interest charges will cost me around £30 a month. So I've decided to pay off my overdraft using a 0% interest for 18 months virgin credit card (it is one of the few that offer this type of transfer)

I know there will be a fee (4%) for doing this but I'm worried the T%C's are subject to change and it might not continue to be 0% for the 18 months as promised.

1) Has anyone done this kind of transfer that has good/bad experiences?
2) Is it guarenteed that it will stay at 0% and there are no other hidden charges?
3) Is the repayment plan decided on application? (some of the literature says that theres a risk that is a payment is missed then high charges apply, what if I decide to pay more off the card one month than the other? Would it be safer to just set up a DD and stick to that?
4) Given that I have just paid off 2 credit cards and the only other debt I have is this overdraft (and my student loan) is there I chance I could be denied the card?

Thanks for any advice!

SBT

Tixy

Guaranteed to stay at 0% so long as you keep within the T&C, crucially that means making the minimum payment on time every month (people do lose the 0% deal because they haven't allowed enough time for the payment to reach the account.

You have to pay the minimum payment each month - not a set repayment plan. On virgin cards I beleive the minimum is 1% of the balance plus interest, so if the interest is 0% then it will be 1% of the balance. Of course it would be advisable to pay much more than that off each month so that the balance is clear within the 18months.

There is always a chance you won't be accepted for a card. Do you meet the base criteria (in terms of employment, income levels etc)? have you got a spotless credit history? in addition to that they will look at your existing levels of debt and available credit compared to your income and assess if they think you can afford to service more credit.

Which 2 cards have you just paid off? any that were MBNA backed cards? Are those accounts paid off or paid off and closed?

SBT123

Tixy wrote: »

Guaranteed to stay at 0% so long as you keep within the T&C, crucially that means making the minimum payment on time every month (people do lose the 0% deal because they haven't allowed enough time for the payment to reach the account.

You have to pay the minimum payment each month - not a set repayment plan. On virgin cards I beleive the minimum is 1% of the balance plus interest, so if the interest is 0% then it will be 1% of the balance. Of course it would be advisable to pay much more than that off each month so that the balance is clear within the 18months.

There is always a chance you won't be accepted for a card. Do you meet the base criteria (in terms of employment, income levels etc)? have you got a spotless credit history? in addition to that they will look at your existing levels of debt and available credit compared to your income and assess if they think you can afford to service more credit.

Which 2 cards have you just paid off? any that were MBNA backed cards? Are those accounts paid off or paid off and closed?

I was paying of the minimum on my barclaycard but I just paid the outstanding balance in one go (300) and I paid off my capital one last year by DD each month. So they are both clear, but not closed. Shall I close the accounts??

I don't know about having a clear credit history? I have a student loan which comes straight out my salary, I earn over 20,000 and I've paid off my credit cards. It's just this overdraft which is left over from my student days. (graduated 2008)

I would simply divide the balance by the time limit which is about £111 a month. Is it safe to do it like this or would it better to pay say £125 off a month and pay it off within 16 months?

I'm just terrified of losing the 0% interest!

Will the T's and C's definately not change?

Thanks in advance for your help!