Should I do a money transfer

Lizab69

I have a delema all be it a rather nice delema.. I've been left an inheritance. I'm going to use it to pay off my help to buy and mortgage, but it's going to fall short by approx 8k. However, I should be getting some more early next year. This will make up the shortfall. I need to pay both off in the next month. Its not an option to wait untill the rest come due to other financial commitments. I'm looking for advice on the best way to borrow the 8k shortfall for a short period.. If I do a money transfer on a credit card they are 4% and the personal loans have early redemption fees. Any other suggestion or advise please. 

cooltt

Lizab69 said:

I have a delema all be it a rather nice delema.. I've been left an inheritance. I'm going to use it to pay off my help to buy and mortgage, but it's going to fall short by approx 8k. However, I should be getting some more early next year. This will make up the shortfall. I need to pay both off in the next month. Its not an option to wait untill the rest come due to other financial commitments. I'm looking for advice on the best way to borrow the 8k shortfall for a short period.. If I do a money transfer on a credit card they are 4% and the personal loans have early redemption fees. Any other suggestion or advise please. 

There are plenty of personal loans which don't have an early redemption fee, Tesco loans for example. It's very straight forward to calculate what each option will cost you.

Lizab69

Thank you cooltt

yksi

HSBC and Nationwide also no early repayment fees. A money transfer should be your last option because while you say it's 4%, you will probably find that is only the fee - most have a whopping interest rate charged daily, not to mention it may not look great for your credit history. Maybe you'll manage to find a "free" money transfer credit card on 0%, but most people won't be that lucky to have the option.

[Deleted User]

I didn't know the daily interest rate on them was high ..... the things you learn on here 👍

yksi

[Deleted User] said:

I didn't know the daily interest rate on them was high ..... the things you learn on here 👍

It's worth checking - maybe you've been really lucky and have a low one or an interest-free period? But generally speaking it's treated as a cash advance and you're looking at 20-40% interest. Your statement should tell you what the cash interest rate will be.