Transfer a Personal Loan to a Balance Transfer Card

starkiwi26

Dear fellow members,

I took a personal loan from Admiral last year during lockdown for a family emergency.
My repayment is good, and my credit score is good also, but I am trying to save some money by transfer the personal loan to a Balance Transfer Card. I understand I have to pay minimum 5% payment and to pay off all balance before 0% promotion expired.

I read these as guide
https://www.experian.com/blogs/ask-experian/can-you-pay-off-loan-with-balance-transfer-credit-card/
https://www.fool.co.uk/personal-finance/credit-cards/learn/can-i-transfer-a-loan-to-a-0-credit-card/

Based MSE recommendation, I applied and got Natwest 0%, no transfer fee credit card. 

However, when I call Natwest just now, they told me they can only do balance transfer to another non-Natwest credit card. They cannot do balance transfer to a personal loan.

I spoke to Admiral regarding this situation, and they provided me with a link where I can make payment by a card. But I forgot to ask if this is considered as a normal purchase or cash advance?
https://ems.ese.pm/Admiral_PGgO

My questions:
a) Is it true that balance transfer credit card cannot pay off a personal loan? (The Experian and Fool guides above are wrong?)
b) Is it a limitation from Natwest? Do other bank balance transfer credit card has this limitation also?
c) Appreciate anyone know if Admiral card payment - considered as a normal purchase or cash advance?

Thanks.

https://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards/

[Deleted User]

It's correct and true of all cards.

You need a money transfer card.

The Experian and Fool guides are correct. The first of your links is an American one and the second says that you need a money transfer card.

Ebe_Scrooge

You can't BT a loan to a credit card - Balance Transfer cards are used to transfer the balance from one credit card to another.  What you need is a Money Transfer card - the lender deposits money into your bank account, and puts a corresponding debit (plus usually a fee) onto the credit card.  You then use the money in your bank to pay off the loan, and repay the credit card over time - making sure to repay it in full by the time the promotional rate expires to save being walloped by the card's standard APR on any remaining balance.  Take a look at the Credit Cards guide on the main MSE site to get an idea of what MT cards are out there.

starkiwi26

I spoke to Admiral regarding this situation, and they provided me with a link where I can make payment by a card. But I forgot to ask if this is considered as a normal purchase or cash advance?
https://ems.ese.pm/Admiral_PGgO

amazonwebservices

said:

I spoke to Admiral regarding this situation, and they provided me with a link where I can make payment by a card. But I forgot to ask if this is considered as a normal purchase or cash advance?

It'll be treated as a cash payment by your card provider, because it's a cash payment.

JamesPeter

starkiwi26 said:

I spoke to Admiral regarding this situation, and they provided me with a link where I can make payment by a card. But I forgot to ask if this is considered as a normal purchase or cash advance?
https://ems.ese.pm/Admiral_PGgO

That is just a link to pay off the loan - normally using a debit card.

As is posted above, you applied for the wrong type of card – what you are looking for is a ‘Money Transfer’ credit card.

Natwest do not offer a money transfer card. From the t&c’s of the card you have, Natwest will charge 29.9% interest if you try to ‘money transfer’ with that card – the same as if you take a cash advance:

 https://www.natwest.com/content/dam/natwest/personal/credit-cards/documents/bt-credit-card-summary-box.pdf

 To see the MSE guide to Money Transfer cards, with some of their picks (however check out them all via each bank) look here:

 https://www.moneysavingexpert.com/credit-cards/money-transfers/