NRAM loan payment options

simpson_77

Hi,

So, I owe Nram £22,531 (today's settlement figure) and currently pay £249 p/m with about 13 years left @ 9.54%.on my de-linked together loan. The option is there to pay it off on 0% credit cards which will save alot in interest. Alternatively I could get another loan @3.9%

Does anyone know how the transaction is seen by the card companies e.g. cash transaction or purchase as this affects the interest rate. and whether or not it is a viable option. I was thinking of putting on my Barclaycard or MBNA. I could always take out another card(s) if there is a better option such as cashback or points (NRAM don't take Amex)

Thanks,

Pixie5740

You would need to use a money transfer card(s) if you want to use credit cards to repay the Northern Rock loan.

Money transfer fees can range from 0% to 5%, possibly more and then you'll need to factor in balance transfer fees further down the line unless you can repay all the money within 41 months (the longest 0% money transfer offer currently available) in order to compare the costs against taking out another loan.

Have you actually been offered a loan at 3.9% APR?

Pixie5740

What stopped you from going down the credit card route last time?

https://forums.moneysavingexpert.com/discussion/5525842

simpson_77

forgot about that thread. Shows how much the balance has changed in the past 11 months!

I guess I never got round to it! which sounds bad, something more important always seems to come up!

simpson_77

Pixie5740 wrote: »

You would need to use a money transfer card(s) if you want to use credit cards to repay the Northern Rock loan.

Money transfer fees can range from 0% to 5%, possibly more and then you'll need to factor in balance transfer fees further down the line unless you can repay all the money within 41 months (the longest 0% money transfer offer currently available) in order to compare the costs against taking out another loan.

Have you actually been offered a loan at 3.9% APR?

Spoke to the bank, went through affordability and internal scoring and approved for £40k (<£25k = 3.9%, >£25k = 6.9%). still need to do a full search, but I have a good CR file with decent affordability,think is should be a given. Was going to use the money to buy a 911, but thinking better to use it or CC to pay off the old Nram loan and wait another 24 months for the new car

Pixie5740

You think