0% Card to pay off loan remainder

mode500

Hi all,

I took out a loan for £3,500.00 ( 6.7%) over 60 months via Zopa to partly pay for a new car in September 2016. At present I still have £2,885 owing.

I would ideally like some help in regards to using one of the Money Transfer cards mentioned on here as I do not fully understand how this whole process works but understand that it is most probably the best way to pay of the remainder of the money.

There are two options from what I can tell ... Either use the MBNA card where I get 48 months at 4.9% or wait a little until I have paid off a bit more on the loan until I can pay the remainder using one of the 0% 32-36 months on offer. Which do you think would be the better way of doing it?

Thank you in advance

[Deleted User]

It depends on how quickly you can clear it and what cards you can get.

The cheapest option, if you can get it, is to get it onto 0% and clear it within the promo timeframe.

mode500

Wow that was a quick response! Yeah I know and understand that much but I don't fully understand how balance transfer cards work as I have never used one before (I've only ever owned and used one credit card for the purchase of a computer which I paid off within 18 months) ... I mean could you possibly walk me through a scenario please given the details above.

I mean I am currently paying £68.70 per month for the loan so my thinking is if I transfer that to 0% card I will be able to pay it off quicker as I will no longer be paying the 6.7% on the loan, correct?

[Deleted User]

With a money transfer card, you transfer money into your bank account for a fee (usually around 3-4%).

You can then use that money for anything - such as paying off a loan.

You then need to pay off the balance on your card, making at least minimum payments. Any remaining balance after the promo ends will be charged at the standard APR on the card.

mode500

Ahh okay I see I understand it a lot better now so thank you so much! So yeah I basically pay a small percentage fee for transferring the money into my bank account to pay off the loan, okay got it, good

Dobbibill

Make sure the card you opt for has a MT option rather than a BT only option.