Transferring a loan to a 0% credit card confusion.

Zoobzi37

I have a personal loan on which I pay interest. I would like to transfer this loan to a 0% credit card and save a lot of money and hopefully pay off the amount earlier.

Using Martins credit card eligibility checker I was 100% pre-approved for the barclaycard platinum visa 29 month 0% card. I phoned Barclays to check if I could transfer my loan to this account and they said i couldn't.

I have read that i can use a balance transfer credit card for a loan but I have absolutely no idea what these are or how to find one.

I have a memory impairment so things can get confusing for me.

Can anyone help me through this and point me in the right direction.

I have no idea which 0% cards allow loan transfers and which don't.

When I do find a a card that suits i also don't know how to actually do the transfer. I have never done this before as I have never had a personal loan.

I am in absolutely no financial trouble, i just want to save money on paying interest.

Many thanks in advance

MorningcoffeeIV

Zoobzi37 said:

I have read that i can use a balance transfer credit card for a loan but I have absolutely no idea what these are or how to find one.

You can't. 

You need a money transfer card. Look for one on an eligibility checker. However, you will need a good credit history to get one.

DullGreyGuy

None allow a loan transfer. 

A Money Transfer Card is like a balance transfer card but rather than paying the money to another credit card account it allows you to pay the money into your current account. You can then use that cash to pay off your loan. 

The number of lenders offering Money Transfer Cards is much smaller than BT and limits also tend to be less generous. You can read up at https://www.moneysavingexpert.com/credit-cards/money-transfers/ 

Naturally be aware that if you don't pay off the debt in the 12 months (or whatever the duration of the offer is) that the interest you go onto is likely to be higher than whatever the current loan is.

Zoobzi37

DullGreyGuy said:

None allow a loan transfer. 

A Money Transfer Card is like a balance transfer card but rather than paying the money to another credit card account it allows you to pay the money into your current account. You can then use that cash to pay off your loan. 

The number of lenders offering Money Transfer Cards is much smaller than BT and limits also tend to be less generous. You can read up at https://www.moneysavingexpert.com/credit-cards/money-transfers/ 

Naturally be aware that if you don't pay off the debt in the 12 months (or whatever the duration of the offer is) that the interest you go onto is likely to be higher than whatever the current loan is.

Thanks for the link. yes the most I can get is 12 months.

At the end of the 12 months can I then transfer the amount to a standard 0% credit card?

Thanks again

Nasqueron

Zoobzi37 said:

DullGreyGuy said:

None allow a loan transfer. 

A Money Transfer Card is like a balance transfer card but rather than paying the money to another credit card account it allows you to pay the money into your current account. You can then use that cash to pay off your loan. 

The number of lenders offering Money Transfer Cards is much smaller than BT and limits also tend to be less generous. You can read up at https://www.moneysavingexpert.com/credit-cards/money-transfers/ 

Naturally be aware that if you don't pay off the debt in the 12 months (or whatever the duration of the offer is) that the interest you go onto is likely to be higher than whatever the current loan is.

Thanks for the link. yes the most I can get is 12 months.

At the end of the 12 months can I then transfer the amount to a standard 0% credit card?

Thanks again

IF you can get one, yes you can do the balance from the MT card to the new BT card

However, this assumes you will get one, you may not. The safe / money saving thing is to use the extra money you are getting from not paying interest to pay more on the card so it clears before the end - you must always have an exit strategy for MT/BT cards else you'll end up paying the standard APR which will be around 40% making the loan look like chickenfeed. Remember the credit assessment is done based on your existing debt, so a loan that is still running (unless you get a card with enough credit to clear it) plus the CC debt vs your earnings will count as part of the calculation so you might not get a BT card with enough limit, if you get one at all.

If you can't get an MT card though there is a way to play the system - if your BT card has say 3 months to do transfers, you spend everything you can on CC and then balance transfer off every month, pay the minimum and use the money "saved" (i.e. not actually taken from your bank) to overpay the loan. This needs discipline (to not waste the extra money) and planning e.g. pay for car insurance, fill up car regularly, do bulk buy shopping for long life products etc

Zoobzi37

I wont qualify for the 12 month card. I suspect I am stuck with my loan and interest payments.

Thanks anyway

Nasqueron

See edit above - worth a think about the second paragraph

Zoobzi37

Nasqueron said:

Zoobzi37 said:

DullGreyGuy said:

None allow a loan transfer. 

A Money Transfer Card is like a balance transfer card but rather than paying the money to another credit card account it allows you to pay the money into your current account. You can then use that cash to pay off your loan. 

The number of lenders offering Money Transfer Cards is much smaller than BT and limits also tend to be less generous. You can read up at https://www.moneysavingexpert.com/credit-cards/money-transfers/ 

Naturally be aware that if you don't pay off the debt in the 12 months (or whatever the duration of the offer is) that the interest you go onto is likely to be higher than whatever the current loan is.

Thanks for the link. yes the most I can get is 12 months.

At the end of the 12 months can I then transfer the amount to a standard 0% credit card?

Thanks again

IF you can get one, yes you can do the balance from the MT card to the new BT card

However, this assumes you will get one, you may not. The safe / money saving thing is to use the extra money you are getting from not paying interest to pay more on the card so it clears before the end - you must always have an exit strategy for MT/BT cards else you'll end up paying the standard APR which will be around 40% making the loan look like chickenfeed. Remember the credit assessment is done based on your existing debt, so a loan that is still running (unless you get a card with enough credit to clear it) plus the CC debt vs your earnings will count as part of the calculation so you might not get a BT card with enough limit, if you get one at all.

If you can't get an MT card though there is a way to play the system - if your BT card has say 3 months to do transfers, you spend everything you can on CC and then balance transfer off every month, pay the minimum and use the money "saved" (i.e. not actually taken from your bank) to overpay the loan. This needs discipline (to not waste the extra money) and planning e.g. pay for car insurance, fill up car regularly, do bulk buy shopping for long life products etc

Thanks. I doubt i will get a MT card. I have no idea how to find them online. When i search online they just come up with standard BT cards. I could be searching forever.

I am very disciplined with money. I move it around to maximise my income. So, theres absolutely no problem there. I dont want a card for spending and accruing more debt.

I am retired and own my own house outright. I have to move things around to maximise my income but I dont have any actual financial problems or any issues with paying bills etc.

I just want to save some money on interest. I suspect I made a mistake with the loan but none of use are perfect.

I appreciate your help. Thanks again

And yes, I intend on increasing my monthly payments should I get a MT card.

MorningcoffeeIV

Zoobzi37 said:

Nasqueron said:

Zoobzi37 said:

DullGreyGuy said:

None allow a loan transfer. 

A Money Transfer Card is like a balance transfer card but rather than paying the money to another credit card account it allows you to pay the money into your current account. You can then use that cash to pay off your loan. 

The number of lenders offering Money Transfer Cards is much smaller than BT and limits also tend to be less generous. You can read up at https://www.moneysavingexpert.com/credit-cards/money-transfers/ 

Naturally be aware that if you don't pay off the debt in the 12 months (or whatever the duration of the offer is) that the interest you go onto is likely to be higher than whatever the current loan is.

Thanks for the link. yes the most I can get is 12 months.

At the end of the 12 months can I then transfer the amount to a standard 0% credit card?

Thanks again

IF you can get one, yes you can do the balance from the MT card to the new BT card

However, this assumes you will get one, you may not. The safe / money saving thing is to use the extra money you are getting from not paying interest to pay more on the card so it clears before the end - you must always have an exit strategy for MT/BT cards else you'll end up paying the standard APR which will be around 40% making the loan look like chickenfeed. Remember the credit assessment is done based on your existing debt, so a loan that is still running (unless you get a card with enough credit to clear it) plus the CC debt vs your earnings will count as part of the calculation so you might not get a BT card with enough limit, if you get one at all.

If you can't get an MT card though there is a way to play the system - if your BT card has say 3 months to do transfers, you spend everything you can on CC and then balance transfer off every month, pay the minimum and use the money "saved" (i.e. not actually taken from your bank) to overpay the loan. This needs discipline (to not waste the extra money) and planning e.g. pay for car insurance, fill up car regularly, do bulk buy shopping for long life products etc

I doubt i will get a MT card. I have no idea how to find them online. When i search online they just come up with standard BT cards. I could be searching forever.

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

Zoobzi37

MorningcoffeeIV said:

Zoobzi37 said:

Nasqueron said:

Zoobzi37 said:

DullGreyGuy said:

None allow a loan transfer. 

A Money Transfer Card is like a balance transfer card but rather than paying the money to another credit card account it allows you to pay the money into your current account. You can then use that cash to pay off your loan. 

The number of lenders offering Money Transfer Cards is much smaller than BT and limits also tend to be less generous. You can read up at https://www.moneysavingexpert.com/credit-cards/money-transfers/ 

Naturally be aware that if you don't pay off the debt in the 12 months (or whatever the duration of the offer is) that the interest you go onto is likely to be higher than whatever the current loan is.

Thanks for the link. yes the most I can get is 12 months.

At the end of the 12 months can I then transfer the amount to a standard 0% credit card?

Thanks again

IF you can get one, yes you can do the balance from the MT card to the new BT card

However, this assumes you will get one, you may not. The safe / money saving thing is to use the extra money you are getting from not paying interest to pay more on the card so it clears before the end - you must always have an exit strategy for MT/BT cards else you'll end up paying the standard APR which will be around 40% making the loan look like chickenfeed. Remember the credit assessment is done based on your existing debt, so a loan that is still running (unless you get a card with enough credit to clear it) plus the CC debt vs your earnings will count as part of the calculation so you might not get a BT card with enough limit, if you get one at all.

If you can't get an MT card though there is a way to play the system - if your BT card has say 3 months to do transfers, you spend everything you can on CC and then balance transfer off every month, pay the minimum and use the money "saved" (i.e. not actually taken from your bank) to overpay the loan. This needs discipline (to not waste the extra money) and planning e.g. pay for car insurance, fill up car regularly, do bulk buy shopping for long life products etc

I doubt i will get a MT card. I have no idea how to find them online. When i search online they just come up with standard BT cards. I could be searching forever.

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

Thanks, I dont qualify for the virgin and the tesco is only for 9 months. Then the interest is higher than what I am paying at present. Yes I could then transfer to a BT card but its too high a risk should I struggle to get one.

I suspect am stuck with my loan and high interest rates.

Thanks anyway

In this country its the people with the most money who get the best deals. Ergo. Those who need them the least are those whom benefit the most. Those with the least actually subsidise those with the most.

MorningcoffeeIV

Zoobzi37 said:

MorningcoffeeIV said:

Zoobzi37 said:

Nasqueron said:

Zoobzi37 said:

DullGreyGuy said:

None allow a loan transfer. 

A Money Transfer Card is like a balance transfer card but rather than paying the money to another credit card account it allows you to pay the money into your current account. You can then use that cash to pay off your loan. 

The number of lenders offering Money Transfer Cards is much smaller than BT and limits also tend to be less generous. You can read up at https://www.moneysavingexpert.com/credit-cards/money-transfers/ 

Naturally be aware that if you don't pay off the debt in the 12 months (or whatever the duration of the offer is) that the interest you go onto is likely to be higher than whatever the current loan is.

Thanks for the link. yes the most I can get is 12 months.

At the end of the 12 months can I then transfer the amount to a standard 0% credit card?

Thanks again

IF you can get one, yes you can do the balance from the MT card to the new BT card

However, this assumes you will get one, you may not. The safe / money saving thing is to use the extra money you are getting from not paying interest to pay more on the card so it clears before the end - you must always have an exit strategy for MT/BT cards else you'll end up paying the standard APR which will be around 40% making the loan look like chickenfeed. Remember the credit assessment is done based on your existing debt, so a loan that is still running (unless you get a card with enough credit to clear it) plus the CC debt vs your earnings will count as part of the calculation so you might not get a BT card with enough limit, if you get one at all.

If you can't get an MT card though there is a way to play the system - if your BT card has say 3 months to do transfers, you spend everything you can on CC and then balance transfer off every month, pay the minimum and use the money "saved" (i.e. not actually taken from your bank) to overpay the loan. This needs discipline (to not waste the extra money) and planning e.g. pay for car insurance, fill up car regularly, do bulk buy shopping for long life products etc

I doubt i will get a MT card. I have no idea how to find them online. When i search online they just come up with standard BT cards. I could be searching forever.

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

Those with the least actually subsidise those with the most.

It's more that those who repay their debts subsidise those who don't.

But before giving up, you should consider the other option presented up-thread. Both that, or using a 0% purchases card to free up funds would save you money.