Best Way to use CC's to pay loan?

abzymal

Hi all,


I have an existing loan with NATWEST with an outstanding balance of £14,000.


I am 2 years into the loan with 3 years left. To avoid paying interest for the next 3 years, I contacted NATWEST to see whether I could settle the account early, to which they said yes.


I subsequently applied for a Virgin Money card and Halifax card. Both cards were approved, VM giving me a CL of £10k whilst Halifax gave me a CL of £5k


Both have BT periods for at least 30 months at 0%. I can pay off the amount owing £14k within this period whilst saving £3k-£4k in not having to pay interest on the loan.


My question is, what is the best way of paying/closing down of my loan. Below are my 2 options:


1) BT the funds from both cards into the loan account.


2) Money transfer VM card (approx. £9.5k) then BT the £5k in Halifax card to VM card, then do another money transfer from VM card.


Or is there a 3rd option?


I am hoping someone can help! Many thanks in advance!


Abs

[Deleted User]

You will only be able to do it through a money tranfer. You can't BT a loan.

SuperHan

Are money transfers at 0%? Usually they're not, but if it is, then there is also usually a smaller cash limit than the full limit (e.g. for Halifax it's 50% of the total limit), so you may not be able to get the full 9.5k in money.

abzymal

zx81 - thanks for clarifying, useful to know




Superhan - VM do allow money transfers at a slightly higher rate.

abzymal

does that mean I should go with my original option 2?