Money transfer to pay loan?

I have the option to transfer 8k as a money transfer from my virgin credit card for a 3.5% fee- interests free for 13monthd. A couple of weeks ago I took a 10k loan out over 4 years to purchase a car, at 8.9% with mbna. Would it be a good option to go with this money transfer? It won't clear my loan, but will greatly knock off the interest.

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  • Brie
    Brie Posts: 9,265
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    And will you be able to pay off the transfer in 13 months?  If not what will you do?  Interest rate at that point is likely to be 26% or something quite high.

    Not saying you shouldn't do it - I've done similar when buying a car in the past.  Just saying you need to be prepared.
    "Never retract, never explain, never apologise; get things done and let them howl.”
  • kezzygirl
    kezzygirl Posts: 844
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    Brie said:
    And will you be able to pay off the transfer in 13 months?  If not what will you do?  Interest rate at that point is likely to be 26% or something quite high.

    Not saying you shouldn't do it - I've done similar when buying a car in the past.  Just saying you need to be prepared.
    It won't be paid off in the 13mths but I'm hedging bets on another transfer card
  • Ferro
    Ferro Posts: 103
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    kezzygirl said:
    Brie said:
    And will you be able to pay off the transfer in 13 months?  If not what will you do?  Interest rate at that point is likely to be 26% or something quite high.

    Not saying you shouldn't do it - I've done similar when buying a car in the past.  Just saying you need to be prepared.
    It won't be paid off in the 13mths but I'm hedging bets on another transfer card
    It won’t pay off the loan as you say. Will MBNA reduce the monthly payments on the £2000 balance or reduce the term meaning that you continue to make the same monthly repayment?
  • CliveOfIndia
    CliveOfIndia Posts: 1,187
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    kezzygirl said:
    Brie said:
    And will you be able to pay off the transfer in 13 months?  If not what will you do?  Interest rate at that point is likely to be 26% or something quite high.

    Not saying you shouldn't do it - I've done similar when buying a car in the past.  Just saying you need to be prepared.
    It won't be paid off in the 13mths but I'm hedging bets on another transfer card
    This can be a risky gamble.  Of course you may well be able to get another BT card next year - but what happens if you can't?  BT offers already appear to start becoming less available recently than they were in the past - and who knows what the general financial landscape will look like in a year's time?
    If you can do another BT then great - but if you can't then you might find yourself in a bit of a sticky situation.  Just something to bear in mind.
    Aside from that consideration - check whether there's any penalty for making an overpayment on the loan.  Even if there is, it may still be financially worthwhile (don't forget to factor in the MT fee as well).  Just check, and do the maths beforehand.

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