Cutting the Cost of a Loan using Credit Card

Minx1986

Hi everyone,

Has anyone had any experience in cutting the cost of a loan by transferring it to a credit card?

I recently applied for a Sainsbury loan, thinking I would consolidate all my credit cards and loan (settlement figure approx £11,000 currently), but was rejected. However my Barclarycard has now increased my credit limit (without any request) to almost £10,000. This card is empty. They currently have a balance transfer offer of 6.9% for the life of the balance. Much less than my APR on my Loan. I guess I'm wondering,

A) Can I transfer in this way
If I ring my existing loan and offer them the maximum amount available to transfer, are they likely to accept this, being I'm not in a dire situation (and it may be £2000 less than the settlement amount
C) If they did accept this, would this be noted on my credit file as a negative in anyway against me?

I'm really good with making all my payments on time, and would set up a direct debit for the amount I'm paying, to the credit card, in the long term however I think it works out that I would pay this loan in approximately 30 months instead of 40! (I know 10 months does not seam a lot, but I'm knocking 30 and want to be debt free and have a chance to save before I have children!

Herzlos

You won't be able to pay off the loan with the credit card. You can transfer all of your credit cards to the new one though which at least takes care of some of it.

They might offer a money transfer or super transfer, where they'll transfer money to your current account (at a slightly higher rate) and then you can use that to clear the loan though.

[Deleted User]

Also , the loan company is not going to accept a negotiated settlement if you are up to date with your payments.

And I don't think you would want the consequences if they did.

Gaz83

If you have enough available balance on your other credit cards, you could do a cash advance from them to your current account, then pay off your loan with your current account, then use your new credit card to consolidate your credit cards.

You'll be hit with fees though, so you'll need to work out if it's worth it.