Using a 0% Credit Card to pay off a personal loan.

WingChunKuen

I have currently have a personal loan that has an interest rate of 9.9%. I currently have approximately 36 months left to pay. There are no penalty charges associated with this loan, so I am currently overpaying almost double the agreed payment, which will reduce the payment time by about half and save loads in interest.
What I want to know, is it possible to get a 0% credit card and use that to pay the loan off and then I can invest the money that I am currently repaying into an ISA (paying the minimum to the credit card) and then pay the card off before the 0% interest rate finishes.?
This would then allow me to make a bit of money. My credit rating is currently at the full 1000 points, so it shouldn't be a problem obtaining a long 0% credit card!

MattMattMattUK

WingChunKuen said:

I have currently have a personal loan that has an interest rate of 9.9%. I currently have approximately 36 months left to pay. There are no penalty charges associated with this loan, so I am currently overpaying almost double the agreed payment, which will reduce the payment time by about half and save loads in interest.
What I want to know, is it possible to get a 0% credit card and use that to pay the loan off and then I can invest the money that I am currently repaying into an ISA (paying the minimum to the credit card) and then pay the card off before the 0% interest rate finishes.?

You cannot pay it off with a credit card no, you would need a money transfer card instead, or another loan.

WingChunKuen said:

This would then allow me to make a bit of money. My credit rating is currently at the full 1000 points, so it shouldn't be a problem obtaining a long 0% credit card!

Your credit score is a meaningless number and no lender ever sees it. If you are taking on additional debt you need to factor in affordability which is often important. 

Jami74

I used a zero fee 0% interest money transfer card to pay off a loan and then paid the credit card off before the promotional rate finished. It saved me a couple of hundred quid in interest.

Area88

You could get a 0% purchase card and put all your expenditure on that why you pay off the existing loan. 

CliveOfIndia

You won't be able to use a 0% spending or a 0% BT card to do this.  A BT card can only be used to transfer a balance from another credit card.  It's highly unlikely that the loan provider would accept payment from a "spending" card, but even if they did it would be treated as a cash advance by your card, so you'd be hit with a cash advance fee and it wouldn't qualify for the 0% deal.

A Money Transfer card would be the only to way "transfer" the debt to a card - but be aware of the fee for doing the transfer.

Area88

They can still use 0% purchase card to put all their current expenditure on it I.e bills. This frees up money they can use to pay off the loan quicker.