Any point switching loan to money transfer card

chriz1

Hi all,

I have a loan with zopa and someone recommended to me that I should transfer the balance to a money transfer credit card to save money. I'm not very clued up on this process could someone explain the way it works and benefits of doing so ?
I am not struggling to make payments and haven't missed one at all ...

eskbanker

A money transfer card would allow you to get cash into your current account, from which you could then pay off the loan, see https://www.moneysavingexpert.com/credit-cards/money-transfers/ for more details.

However, there are a number of issues to consider - you may not be eligible for a suitable money transfer card (check https://creditcards.moneysavingexpert.com/?money-transfers) or it may cost you more than the loan or have a lower limit than the size of the loan.

chriz1

So if all those were ok and it was less, what benefit in general would it be ?

MallyGirl

You would want a 0% money transfer card so that would mean you pay no interest for the period of the 0% deal. There would be a transfer fee though so you would need to do the math to see if it would save you money. You would also need to be sure that you could pay off all the money transfer before the 0% deal ran out