paying off loan with balance transfers

axlbart

This is quite difficult to explain, but here goes.....I'll try keep it simple.....
View these in your mind:
A personal loan of £5500
Card 1: A credit card which I pay off in full every month
Card 2: Another credit card with a long 0% balance transfer offer and £6000 credit limit with a zero balance

Transfer a "balance" of £5500 to card 2 from card 1 so card 1 is now in credit by £5500
Transfer that credit from card 1 to my bank account
Pay off the personal loan

Is that possible?
I don't see why not. It seems simple enough, yet its really a sly way of getting a loan paid off without any more interest and paying it off at my leisure.
Can anybody see a problem with this?
I can't

[Deleted User]

It's against t&cs normally to put the account in credit. That kind of sum may see the balance returned but still costing you the fee.

What not look at a money transfer card?

YorkshireBoy

Who are the providers of each card?
And what's the credit limit on card 1?

axlbart

I'll check the t&c. I didn't want to ask them if I could do it, I didn't want to give them the opportunity to say no.
Card 1 is capital one. There's plenty room on it for the transfer.

axlbart

I didn't want to apply for another card as even I think I have way too much credit now.

axlbart

Halifax is the other card