Pay off loan with 0% credit card

F.Bhana

Hello,

I am very new to this 'money' game....

I took out a loan earlier this year with Zopa. There is an outstanding balance of approx £3,300 at 17.5% APR. I'm not, in any way, struggling to pay off this loan, but I'd like to get smarter with my money and pay off this loan without the silly interest rate.

I bank with Barclays, and was approved for a Barclaycard with a limit of £5000, 0%APR for 24 months. I applied for this credit card with the intention of using it to pay off the Zopa loan.
However, I have now come to know that Zopa do not accept credit card payments to clear off the loan. The money needs to be in my current account. I know I should have contacted Zopa prior to getting the credit card, but as I said, I am new to the 'money' game, with very little knowledge on how it all works :undecided

I'd like to understand how I can get this £3,300 into my current account to clear off the Zopa loan. Can anyone advise of any providers?

Once I've got this money into my current account and have paid off the Zopa loan... Would I then need to contact Barclaycard to do a balance transfer of £3,300 to pay off interest free over the next 24 months?

I have 42 days before my promotional balance transfer deal expires with Barclaycard, so I need to have the Zopa loan cleared off, and the balance transferred onto the credit card before then.

Thank you!

[Deleted User]

You need a money transfer card.

SeduLOUs

You need a money transfer card. MBNA do them.

Alternatively, you could put absolutely everything you spend day to day on the new 0% card until it's up to the £3,300 balance (bills, groceries, fuel, etc). The cash you would have spent on all this will still be sat in your bank account and can be thrown at the loan instead. It will avoid any transfer fees but obviously takes a little bit longer to implement depending on how long it will take you to spend £3,300.

F.Bhana

Thank you for your quick reply zx81 and SeduLOUs.

Ok, so I'd need to apply for a money transfer card - will have a look into MBNA - thank you for the recommendation. I think I saw a money transfer card from Virgin too?

I'm guessing there may be some fees/charges involved for transferring money to my current account? Is there any interest added in addition to/instead of the fees?

How will I know which money transfer card policy is the best one for me? Or, does it not matter so much since I plan on transferring the balance to the Barclaycard as soon as I have the funds in my current account to pay off the loan?

Alternatively, you could put absolutely everything you spend day to day on the new 0% card until it's up to the £3,300 balance (bills, groceries, fuel, etc). The cash you would have spent on all this will still be sat in your bank account and can be thrown at the loan instead. It will avoid any transfer fees but obviously takes a little bit longer to implement depending on how long it will take you to spend £3,300.

Yes, I think this will take much longer for me to implement, and to be honest with you, I want to clear the Zopa loan ASAP and just stick to the Barclaycard.

Thanks again for your advice so far

System

F.Bhana wrote: »

I'm guessing there may be some fees/charges involved for transferring money to my current account? Is there any interest added in addition to/instead of the fees?

Not for the interest free period.

How will I know which money transfer card policy is the best one for me? Or, does it not matter so much since I plan on transferring the balance to the Barclaycard as soon as I have the funds in my current account to pay off the loan?

Longest rate for lowest fee. Given that you will then not ever use the card again until the balance is paid off then it doesn't matter.

F.Bhana

Tarambor wrote: »

Not for the interest free period.

Longest rate for lowest fee. Given that you will then not ever use the card again until the balance is paid off then it doesn't matter.

Awesome. Thank you.

Finally, and potentially a stupid question, but... With a money transfer card, do I need to contact the lender to let them know I would like the money in my current account? Or is that the sole purpose of the card, that the money goes directly to your current account?
Once I have spent this money to pay off the Zopa loan, do I then contact Barclays to let them know i'd like to transfer that balance to the Barclaycard?

If there any links to any webistes with this information, i would be grateful if you could direct me to them

MallyGirl

it will just go straight to your current account when you do a Money Transfer.

If the Money Transfer is at 0% why do you want to transfer it to Barclaycard?

Is your Barclaycard 0% on purchases or 0% Balance transfer?

Candyapple

Here is the eligibility calc for money transfer cards:
https://creditcards.moneysavingexpert.com/?money-transfers

What you need to do is:
a) Apply for a card
b) When you receive the card and have activated it, either phone up the card provider or use your online card account access to log in and initiate a money transfer to your current account
c) When the money reaches your bank account - pay off your Zopa loan

I don't know what type of Barclaycard you have - is it 0% purchases? Or 0% on balance transfers? If it's balance transfers then that card is redundant as it is of no use to you because you can't balance transfer from a debit card (your bank account). If it's a 0% purchases card, then just use it in place of your normal spending and clear the balance at the end of the 0% period.

20aday

If you log into your account online are Barclaycard offering any money transfers for you?

I've got a Platinum card which is 0% for purchases and transfers and I've got 0% on money transfers until January 1, 2019 (for a small fee).

F.Bhana

Thank you for your replies

If the Money Transfer is at 0% why do you want to transfer it to Barclaycard?

Good point. I'm under this mindset of wanting just one policy to take care of, i.e, Barclaycard. Since I have used a couple of hundred on the Barclaycard already, I feel I can manage my spending habits better and keep things straightforward for myself by having just one lender to keep track of. So, by transferring the £3,300 after I have cleared the loan onto the Barclays credit card, will help me to do just that.

However, if what I am saying doesn't make sense, or if I am overthinking this/complicating things for myself, then I am open to other, and better approaches too!

I don't know what type of Barclaycard you have - is it 0% purchases? Or 0% on balance transfers?

it is 0% on purchases, and 0% interest on balance transfer with a 2.5% fee for 25 months

Thank you both again for your advice so far

chelseablue

I have a Barclaycard and they are currently offering me a 0% money transfer. 0% until July 2018

I'd log into your account and have a look under Offers