Balance Transfer to Pay off Loan?

mr__ben_3

Hi Guys,

I'm very much a newbie when it comes to credit cards, and up until a few months ago I was shuddering at the thought of even getting one.

I've been pondering the thought for the past couple of weeks, of getting a credit card from virgin to transfer the balance. However, i'm not sure how it would work for me..

I've got an outstanding inflexible loan with AA Personal Finance, which is currently at £4,700, which with the 10.8% APR i'm paying, it's beginning to annoy me with half of my monthly payments going towards the interest.

I've since been on to the virgin money website and started an application, but nerves and thoughts got the better of me and thought i'd turn here for a bit of advice before i do. My main problem was that they wanted to know what CARDS i wanted to pay off, with no mention of a loan etc. So is paying off a loan possible with a balance transfer.. or does it class as a purchase?

Also, how possible would it be to get a card to pay the full amount of £4,700?

I hope someone can help.. and thanks very much in advance

CLAPTON

the MBNA stable of CCs (which include Virgin) allow BT from your current account. So you merely do a BT from your current account and then pay off your loan with the money.

do consider what happens at the end of the 0% period... can you afford to clear the CC? ... dont assume you will be able to get a new deal then

mr__ben_3

CLAPTON wrote: »

the MBNA stable of CCs (which include Virgin) allow BT from your current account. So you merely do a BT from your current account and then pay off your loan with the money.

do consider what happens at the end of the 0% period... can you afford to clear the CC? ... dont assume you will be able to get a new deal then

That's good. I just wanted to make sure I was able to do this.

I'm aiming for the longer term of 15 months, to enable me to get a sizeable chunk (if not all) paid off.

I have still got 35 months left on my term for my loan, and am looking to dramatically shorten this, aswell as saving on the 10.8%APR i'm paying.

mr__ben_3

Are there any card companies offering a credit limit of £5k for 22 year olds?

I don't want to start applying for cards if I won't get anywhere near that.

PLUS.. I applied for a loan to consolidate everything in one place, and was rejected for it. It was a £5k loan, and i've never defaulted a payment on anything.. I have a loan, car finance, phone contract?