Transferring a Loan to a CC Question

Moncs_2

Hi, hopefully someone could let me know if they think this is a good idea or not. I think it is but hey.. who am I??

I have an outstanding Barcleycard Car Loan which has 3yrs 10mths left to run with an outstanding balance of £5500. (APR 11.9%)

I have applied for a Cap One 18mths Interest Free on BT's card, and would like to transfer this loan to the new card if I get approved.

I plan to pay the loan off in Oct 2006 anyway and if I do transfer the loan to the CC, I would still pay the £130 per month which I currently pay to the loan at the moment to the CC.

By my calculations I would have £3160 left to pay on the CC when the 18mths run out if I paid the £130 per month.

I don't know if I would be any better of by doing this.

Rafter

Moncs,

It depends on what the settlement value is on your loan since there will probably be some sort of early settlement penalty.

However, it is highly likely at 0% that you will be better off.

There are a couple of things you need to bear in mind.

1) You can only pay off another credit card from Capital One so you will need something called a 'mule card' to get the Capital 1 credit limit to your current account so you can pay of the Barclaycard loan. An Egg card is probably best for this.

2) There is no point paying off the 0% credit card any more than the minimum balance. You are better off putting the money you would have paid on the loan into a high interest savings account and then paying off Capital 1 at the end of the 18 months.

If you want to get back to me with the settlement value on your loan, I can do the sums and check you will be better off.

R.

carl310166

I have just done a similar thing,transfered a 14k car loan to two 0% cards.

But how are you going to settle the loan with the Cap One card? i thought you needed a SBT card pay the credit limit into your current account,then pay the loan from there.

I will be chucking every penny i have for the next 14 months (9 months Virgin and 5 months Egg aniversary). I hope i don't need another card,but if i do,i will apply 6 weeks before my Egg comes to an end.

I would hope you could rotate the 0% cards also,and save a fortune in interest !

Moncs_2

£5500 is the settlement value as I have asked them for this.

I have asked my bank to increase my overdraft to £5500 in order for me to pay the loan with my current account, then I planned to transfer my overdraft to the Cap One card.

So you don't think I would be any better off by doing this?

Rafter wrote:

Moncs,

It depends on what the settlement value is on your loan since there will probably be some sort of early settlement penalty.

However, it is highly likely at 0% that you will be better off.

There are a couple of things you need to bear in mind.

1) You can only pay off another credit card from Capital One so you will need something called a 'mule card' to get the Capital 1 credit limit to your current account so you can pay of the Barclaycard loan. An Egg card is probably best for this.

2) There is no point paying off the 0% credit card any more than the minimum balance. You are better off putting the money you would have paid on the loan into a high interest savings account and then paying off Capital 1 at the end of the 18 months.

If you want to get back to me with the settlement value on your loan, I can do the sums and check you will be better off.

R.

Moncs_2

Do you think it is worthwhile for me to do this, or just leave things as they are?

Moncs_2

Thought I would bump this one last time to see if anyone has any advice