Personal Loan repayment thoughts
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Transferring personal loan to credit card
So I just took out a personal loan of 12000 at 11.3%. The first payment is not due until July 30th. A credit card that I have has just offered me a balance transfer of 5.8% and that rate stays until the balance is paid off. Meaning there is no time limit to have it paid. The fee is only 2%. Obviously, I pretty much know my answer is that it is a smart move. My main question is how to personal loan companies look at this (in this case Goldman Sachs) if the loan is paid off before the first payment?
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You'll need to either find a money transfer card, another loan or pay it off from savings.
Lenders will see that the loan is settled, but also the corresponding increase in debt elsewhere if you use credit, so it will make little difference to your risk.
If you got the loan within 14 days then it'd be better to cancel the loan in the cooling off period and avoid the penalty interest for early settlement but if you are beyond that then the loan company wont care and you just need the early settlement figure to cover the penalty for early settlement (normally 1 months interest)