Balance transfer Personal loan to Credit card

Happy_monday_2

Does anyone think that this is a good idea ?
Briefly, i have a personal loan with my Bank of approxinately £6K with around 4 years left to pay. I am paying around £155 pm and the interest rate is 8.9%. !!
I was thinking of obtaining a 0% credit card for a 24 month period and transfering the personal loan balance to the credit card thereby not incurring any interest for two years. After the two years, if not paid off, i would move to another 0% card.
I realise that I will have to pay a 3% + transfer fee. I don't believe that there is an early repayment charge for settling the personal loan. but will check.
Any thoughts on the above would be much appreciated.

chunkychocky

1) You may not be given a high enough credit limit to transfer £6k.
2) Many cards will only do a balance transfer from another credit card.

cripes_2

Yeah - You wont be able to pay off a loan with a balance transfer! You could do a super balance transfer which transfers the money to your current account. although not many providers do them.

MBNA is one! think they do 0% for 23 months or 5.9% for life of balance

Will need spotless credit tho

cripes_2

Its a brilliant idea in principal tho!
Good luck

Happy_monday_2

Thanks all for your advice/guidance.
My outstanding balance for my personal loan was a fair bit less than i thought at £4500. I searched on the, super balance transfer phrase that was mentioned above and found the MSE advice and link right here.
I did the pre check credit rating as suggested and it gave me a favourable response. I then took the plunge and applied to MBNA, as mentioned, for a 23 month 0% credit card that allows money transfers into your current account that will allow me to pay off the loan to the bank.
I was very fortunate at just scraping through with the amount of credit they would give me to use in the money transfer. This just covers the amount outstanding on the personal loan. So, hopefully over the next few days, i can pay off the personal loan with its 8.9% interest using the 0% CCard.
Thanks all, looks good up to now .
If anyone notices any drawbacks/pitfalls please feel free to pipe up. Is there something I have missed ?
Is this too good to be true?

AFK_Matrix

The only thing that hasn't been mentioned yet is the fee you will incur for doing the balance transfer. It can range from 1 to 4% so on top of the 4500 you want to take out you will have to add on a fee upto £180 which could tip you over your limit.

Oh and have you checked if there are any early repayment fees on your loan?

cripes_2

Yep - and dont ever use the card for purchases as the interest will go up to 20% ish, and try pay off within 23 months or make a massive dent in it

apart from that, its a class way to pay less interest