Balance Transfer to pay off a loan

stoke_bishop

Hi MSE.com,

I need to find a low-rate (e.g. 0%, with a fee) credit card that will allow me to transfer a balance to pay off a loan. I can only find card which pay off other cards. Are there any that can pay off loans as well?

mountainofdebt

What you will need to have (or get!) is a credit card that will allow you to make transfers into your bank account - Egg has this facility and MBNA used to as well although you will need to check regarding fees.

Some cards now offer new applicants cheques so effectively what you do is write yourself a cheque, pay off the loan once the cheque has cleared and then the balance is then on your credit card. Hubby had a Mint card that offered this facility. Again check what fees are associated.

Usually credit card cheques are to be avoided like the plague but so long as the cheques are on the promotional rate and not on the extorionate rate credit card cheques normally are on, I don't see what is wrong in using them.

Also check to see if the early settlement figure of your loan will make this worth while.