Switch to balance transfer?

Swampy3k

Hi folks looking for a bit of advice here. I currently have a loan (5.9%) through a credit union, this can be overpaid and even cleared off without any penalties, I'm considering taking out a few balance transfer credit cards and taking the hit on the initial fee to save on the interest long term, I'm just curious as to if I did this would it actually count as a balance transfer or a cash transfer?? Thanks in advance

Tixy

I'd think it is unlikely you can pay off the credit union loan directly with a credit card - if you can then it won't be a balance transfer.

If not then you would very likely need a card (or cards) that allow money transfers. This is where you transfer money from the new card to your current account. And then pay those funds to pay off your loan. Only a small number of card providers offer money transfers.

grumbler

Tixy wrote: »

I'd think it is unlikely you can pay off the credit union loan directly with a credit card - if you can then it won't be a balance transfer...

..., but a Spending 0% Card could do the job and even better as you wouldn't be charged the BT fee.

You would very likely need a card (or cards) that allow money transfers. This is where you transfer money from the new card to your current account. And then pay those funds to pay off your loan. Only a small number of card providers offer money transfers.

Also, as the loan rate is just 5.9%, a BT can be not worthwhile because of the BT fee - depending on the remaining term or plans of repaying it.

Balance Transfer Calculator

Tixy

grumbler wrote: »

Also, as the loan rate is just 5.9%, a BT can be not worthwhile because of the BT fee - depending on the remaining term or plans of repaying it.

Very true, always worth calculating the potential saving. The current MBNA deal (1.94% fee for 24months) may make it advantageous to move the debt to a card.

Swampy3k

Have 4 years remaining on the loan. I was just wondering if I was better getting a BT card/s or if it is not worth it just get a normal CC and move the money that way

grumbler

Davie-G wrote: »

....or ...just get a normal CC and move the money that way

:huh:.....................