personal loan to plastic loan

tamilreader

Hi all,
I would like to know if the following would work.

I have about £13500 as personal loan from a bank at 6.9% APR. I am planning to move some of the debt to cheaper credit cards. I have read the articles relating to this but I could not get the egg money card to do as mentioned in the article. I am financially sound, but not sure why my application was rejected. So to make it work I had to think about it. The following is my version of improvisation to the article and want the opinion of the experts on whether it would work.

1) I get one of the cards with low rate for the life of balance cards.
2) I withdraw cash upto the limit from my existing credit card (Debt on my current card now)
3) Transfer the balance on my current card to the new card.

After reading so many post for a long time, this seems very simple to be true and that's where I need you experts to cast your eye on the idea and help me with the points I might have overlooked.

Thanks
G

Xbigman

You should repost this on the credit card forum as its a credit card question rather than a loan question.

But your idea of removing cash from a credit card won't work as you get hit with horrendous interest immediately. Talk to the credit card guys about super balance transfers and exactly which card to use.
Alternatively get a 0% on purchases card and run it up by using it to pay for everything, using the money you would have spent to overpay on the loan. When that card runs out then you BT to a 0% on transfers card.
Regards



X

tamilreader

Thanks Xbigman.
I will post it in the credit card section.
What I was planning was to get the new cheaper rate credit card and then bt the required amount and then withdraw that amount as cash.
I will include that detail while posting in credit card section, but your advice is much appreciated

Thanks
G

Phoenix79_2

Don't 'withdraw the cash' on the credit card. Get a card that allows SBT's (MBNA family of cards) and then merely transfer 95% of the credit limit into your account. If you withdraw the cash at a hole in the wall then you will stung for cash charges

tamilreader

Thanks guys for your suggestions. I got Alliance and Leicester credit card and asked them to transfer £2500 to my account and paid off that portion of the loan. I have 6 months to clear the amount from my credit card.