Paying a loan off with a credit card help

Weewdy

I have been looking at my finances and i was planning on repaying my loan extra each month hopefully reducing the term by around 6 months.

Anyway today i stumble across tescos no fee balance transfer card , i checked topcashback and if my application was successfull i would get £35. I applied and it was accepted straight away.

Now my plan is to pay my loan with a credit card i have nothing on (just kept incase of an emergency) and then balance transfer it to my new tesco card. This will save £270 in interest (plus i get £35 cashback).

Is it seriously as easy as that or have i missed a major flaw in my plan.

P.s should have said the amount i will be transferring will be £5000 which is under my limits and i have no fee for repaying loan early.

molerat

Will the lender accepter payment by CC, I doubt it, most don't.

[Deleted User]

Yup, can't see that working.

How about a money transfer card?

Weewdy

Ok i will check that first, i knew there had to be a flaw somewhere in my plan. Doesnt matter im still £35 better off.

Weewdy

Just checked and i can do it with money transfer, have to pay a fee but will still be less than my interest on loan. Would you recommend doing it that way or just allow my loan to run and make overpayments to it.

[Deleted User]

You need to do the maths - which will cost you more?

Does the Tesco Card have a money transfer option on it?

Weewdy

Yes it does. 3.94% transfer fee and im paying 6% interest on existing loan.

MallyGirl

so the next question is, how long is the MT offer ? can you pay the settlement amount off in that time? otherwise you have just converted 6%debt to 18% or more debt?
Only MT what you can pay off within the length of the 0% deal.

Weewdy

0% is for 2 years, hoping to pay it off in 10 months.

After thinking about it i am thinking i should just stick with the loan.