Money Transfer Cards - What are they suitable for?

fiisch

I currently have two sizeable debts which are bothering me:

Car PCP (£469 per month, circa £21k remaining, balloon due November 2019). 5.4%

Zopa Loan (£134 per month, circa £7k remaining). 2.9%

I have decided I am definitely keeping the car beyond the end of the PCP as I love the car and the mileage is very low (>9k in 18 months).

Would a Money Transfer card such as MBNA likely allow me a high enough credit limit to clear at least one of these debts and save myself some interest and increase the flexibility of repayments?

I've checked the eligibility on MSE which says "100% pre-approved". I'm 31, married, one dependent (15 months), and a higher rate tax payer.

Ben8282

A £7K credit limit may be a realistic expectation. A £21K credit limit would not be.
I would be slightly concerned that with £28K existing debt you may encounter some difficulty.

myra15

A Money Transfer Credit Card ca be used to pay your bills or make any type of purchase.Most of these cards come with a 0% period of a number of months. During this period you will not pay any interest on your credit card, thus every repayment you make will go towards clearing the remaining balance.

MallyGirl

There is almost always a fee associated with a money transfer so there is no point in using that to pay off a 2.9% loan. It would cost you more.
When you come to raising the balloon payment, if you do not already have it saved, then a MT at that time might help. No point in doing it now.

eskbanker

MallyGirl wrote: »

There is almost always a fee associated with a money transfer so there is no point in using that to pay off a 2.9% loan. It would cost you more.

OP's loan is presumably 2.9% per annum (and the quoted figures suggest a term of 4+ years), so a one-off money transfer fee of the same order of magnitude would save money....