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Would this work?
tightbarsteward
Posts: 312 Forumite
in Loans
Have a Cahoot loan where the rate is going up. Applied for a Northern Rock loan which was advertised at 6.4% APR but are offering me 10.9 APR. Looking at the questions & answers sheet they let you pay by credit card - charging 2% of the payment total. This got me thinking.
Get the loan from Northern Rock & pay off the Cahoot loan. Then I could get a credit card with 0% purchases for x no. of months & pay off the loan from Northern Rock thus putting the balance onto the 0% deal on a credit card. The loan amount is £2200 so the charge by Northern Rock would only be £44.
Can anyone see any reason why this wouldn't work. I suppose Northern Rock might not let me pay the whole balance off with a credit card, but you can pay the loan off early without charge.
Get the loan from Northern Rock & pay off the Cahoot loan. Then I could get a credit card with 0% purchases for x no. of months & pay off the loan from Northern Rock thus putting the balance onto the 0% deal on a credit card. The loan amount is £2200 so the charge by Northern Rock would only be £44.
Can anyone see any reason why this wouldn't work. I suppose Northern Rock might not let me pay the whole balance off with a credit card, but you can pay the loan off early without charge.
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