Money transfer card

charlylovesphil

Hello, I currently am 2 years in to a 5 year loan which I pay £220 a month. I was reading about 0% interest money transfer cards and wondering if it’s worth applying for one to pay off the loan and stop paying interest? Don’t really know much about them though so any advice would be welcome. Thank you.

Jami74

charlylovesphil wrote: »

Hello, I currently am 2 years in to a 5 year loan which I pay £220 a month. I was reading about 0% interest money transfer cards and wondering if it’s worth applying for one to pay off the loan and stop paying interest? Don’t really know much about them though so any advice would be welcome. Thank you.

I've been looking into this too. What I have discovered is that my bank will charge 56 days interest on the loan overpayment and the money transfer card I've been looking at (Tesco) charges 3.94% for the transfer.

In my case it would cost about £200, and would save me just over £300 over the remaining 2.5 years. I would continue to pay at least what I'm paying now so the credit card would be paid off a couple of months earlier than the loan would have been.

Another consideration is the needing to find a card that would give the amount required, over the number of months required. Once the 0% ends the interest (in my case) would be three times that of the loan. I'm not sure I'd get the amount I needed over at least 28 months which is why I'm delaying applying.

MallyGirl

0% money transfer deals tend to be a bit shorter length and there is almost always a fee of around 4% so it depends on what interest rate you are paying on the loan, and how much is left, as to whether it is worth doing (if you can get a high enough limit)