Early repayment through credit card loan??

superskirt

Hey,
I'm really sick of paying interest and am thinking of paying off my loan through early repayment with a credit card.. Experian tells me my credit rating is excellent. My loan is £3802 with the extra bit they add for leaving the deal..

Can I get a credit card to do this or can you only transfer balances to other credit cards?

Steph

Tixy

You can get super tranfer cards that allow you to transfer money from your new credit card to your current account and then use that to pay off the loan.

But factor into your calculations the balance transfer fee (usually a bit higher with money transfers, some are 4%) and any early repayment fees you may have to pay on the loan. If you cannot pay off the loan within the 0% period then you'd either need to try to transfer again but you could end up stuck with any balance at a higher interest rate (if you are unable to get another credit card etc - you might even want to consider a life of balance card which will have interest but would save this potential issue).

And the whole deal would of course be dependant on you being able to get a 0% card that allows money transfers with a high enough credit limit to pay off your loan. Even with an 'excellent' credit rating that might not be easy.

What APR are you paying on your current loan? how long is left on the term? how much can you afford to repay a month?

Cards that allow money transfers - http://www.stoozing.com/sbt.php