is this idea possible??

Sh0rty

quick question
i have a 4k loan with santander i want to pay off

i just got a 3k virgin card with 20months free on money transfers

and i also just got a nationwide 2.5k with 17 months free on blanace transfers

(before you ask nobody will give me higher limits as im on a low wage after redundancy)

if i transfer 2250 from my virgin card to my current account then
pay the virgin card off with a BT from the nationwide one
then transfer another 1750 out the virgin to my current account

i will then have the 4k in my current account to pay off my loan and i will have the 4k spread over 2 cards on 17month and 20 month interest free ?

ive spoke to virgin about this and they wont up my limit till 6 months the woman on the phone said it should be ok and she checked with a manager who also said theres no reason why it wont work but im a bit unsure i have until april 15th on the virgin card to do transfers has anyone done anything similar

cooltt

Yes but it will cost you more in the long run. Your loan is a fixed total amount a credit card balance is not. It's up to you if you can live with the extra charges moving money onto credit cards will bring.

Sh0rty

cooltt wrote: »

Yes but it will cost you more in the long run. Your loan is a fixed total amount a credit card balance is not. It's up to you if you can live with the extra charges moving money onto credit cards will bring.

basically i have a few bills and have just got back into work so im trying to keep my car on the road im using this solution to have 2 months off basically paying my full loan amount which is £500 a month so i think it works out for the 2 months i will pay roughly 200 instead of 1000 that 800 will help me back on my feet and then 3rd month on i can clear the cards quickly

but i do understand the fees involved

ejc81

Yes, it will work, but if you are going to do it you want to transfer the smaller amount first so that amount ends up on the 17 month deal.

So transfer £1750 from virgin into your current account and then transfer the £1750 from Nationwide to Virgin. That way the £1750 will be on 0% for 17 months (don't forget to account for the transfers charges).

Then when you transfer the £2250 from virgin into your current account, it will be on 20 months instead of 17 and you will have those extra 3 months to clear the larger balance.

cooltt

ejc81 wrote: »

Yes, it will work, but if you are going to do it you want to transfer the smaller amount first so that amount ends up on the 17 month deal.

So transfer £1750 from virgin into your current account and then transfer the £1750 from Nationwide to Virgin. That way the £1750 will be on 0% for 17 months (don't forget to account for the transfers charges).

Then when you transfer the £2250 from virgin into your current account, it will be on 20 months instead of 17 and you will have those extra 3 months to clear the larger balance.

Providing you can pay off both balances in the 0% period.

JimmyTheWig

Should work in principle.

Have Santander agreed you can repay the loan early in full? Are there penalties for doing this?
What interest rate are you paying on the loan?
How long has the loan got left to go?
How quickly do you think you can repay the credit cards, given that you will, in effect, be increasing your total debt by around £900?