Best Balance Transfers Discussion Area

bj007_2

Hi

Im new to this site, so i really hope someone can help me out!

i have a loan with egg for £6000, Im paying off £300 every month on this in order to clear it in 24 months.
I have done a little bit of research and it seem that i could get a cheaper deal else where. my main aim is to clear teh debt quickly, and if possible reduce teh monthly paymenst as in the current climate i am finding it difficult to make these. ideal would be 250 a month.

my question is, what would be better:

1. go for a 0% balance transfer on a card
2. opt for another loan at a cheaper rate

would i be able to get a bt for 6k? i quite like the idea of having the flexibilty of a credit card. i am unsure of my credit rating now, as it has been good in teh past, howver i have taken a agreed payment break for this loand , will this affect my score?

any help or advice would be much appreciated.
thanks

molley

bj007 wrote: »

Hi

Im new to this site, so i really hope someone can help me out!

i have a loan with egg for £6000, Im paying off £300 every month on this in order to clear it in 24 months.
I have done a little bit of research and it seem that i could get a cheaper deal else where. my main aim is to clear teh debt quickly, and if possible reduce teh monthly paymenst as in the current climate i am finding it difficult to make these. ideal would be 250 a month.

my question is, what would be better:

1. go for a 0% balance transfer on a card
2. opt for another loan at a cheaper rate

would i be able to get a bt for 6k? i quite like the idea of having the flexibilty of a credit card. i am unsure of my credit rating now, as it has been good in teh past, howver i have taken a agreed payment break for this loand , will this affect my score?

any help or advice would be much appreciated.
thanks

Are you thinking that the balance of the loan can be transferred to a card at 0%? I don't think it works that way .My understanding is that only balances from an existing Credit Card can be transferred .Not a loan

paul_taylor_2

Hi All,
I am trying to help out my son at the mo who has a £1700 overdraft with HSBC(£1200 limit) and a poor credit rating(due to problems with his partner- they have now split) can I take out a new free balance transfer credit card in my name and pay it off monthly(he will set up a dd into my account) or will they not accept because it is an overdraft?
Hope this makes sense, Paul.

molley

paul_taylor wrote: »

Hi All,
I am trying to help out my son at the mo who has a £1700 overdraft with HSBC(£1200 limit) and a poor credit rating(due to problems with his partner- they have now split) can I take out a new free balance transfer credit card in my name and pay it off monthly(he will set up a dd into my account) or will they not accept because it is an overdraft?
Hope this makes sense, Paul.

This is similar to bj007's situation with his loan . AIUI If you want a BT card then you need a current balance on a card to transfer to the new card which is not what you have . The only way I can see to resolve your son's problem would be for the overdraft to be paid off by some other less expensive means and for that to be repaid . For example ,if you had capital to pay off the overdraft and he repaid you or if one of you got a loan at less expensive rates and repaid the OD from the loan then repaid the loan .
If I am wrong about the BT cards then I'm sure someone will be along to let me(us) know soon.

Moggles_2

bj007 wrote: »

I have a loan with Egg for £6000. I'm paying off £300 every month on this in order to clear it in 24 months. My main aim is to clear the debt quickly and if possible reduce the monthly payments. Ideal would be £250 a month. Would I be able to get a bt for 6k? I like the idea of having the flexibilty of a credit card

Is it possible to transfer a personal loan balance to a credit card offering 0% credit card transfers?

Not directly. What you can do is apply for a 0% BT card and transfer an overdraft to the card, in other words shift cash from the credit card to your bank account. A BT fee applies, but there are no other charges during the introductory 0% period. You then have funds in your current account with which to pay off the loan

Caution: you cannot use any old 0% BT card. A handful will do this at BT rates (Please see #1249 below)

Moggles_2

paul_taylor wrote: »

I am trying to help out my son who has a £1700 overdraft with HSBC (£1200 limit) and a poor credit rating (due to problems with his partner- they have now split) Can I take out a new free balance transfer credit card in my name and pay it off monthly (he will set up a dd into my account) or will they not accept because it is an overdraft?

A few rather special cards will allow you to transfer an overdraft to them, (in other words, transfer cash from the credit card to your current account), at balance transfer rates. You need:

a card issued by MBNA (e.g. Alliance & Leicester, MBNA itself, Sony, Virgin), Egg card or the Post Office card

alternatively, you can use Egg Money (not to be confused with the Egg card) in conjunction with any 0% or low-rate balance transfer card.

Mint periodically issues credit card cheques, which can be paid directly into a current account. Unless you already have them, this is the least satisfactory option, as Mint cheques cannot be ordered and you never know when the next ones will turn up in the post.

Which option is best depends to some extent on which cards you have at the mo.

To maximise the 0% period, 16 months is currently available to new customers from Virgin. There's a 2.98% handling charge

http://uk.virginmoney.com/credit-card-v3/

Alternatively, you'd get 14 months from Egg card

http://new.egg.com/visitor/0,,3_84106--View_1763,00.html

paul_taylor_2

Thank you all for your help.

Paul.

molley

Moggles wrote: »

A few rather special cards will allow you to transfer an overdraft to them, (in other words, transfer cash from the credit card to your current account), at balance transfer rates. You need:

a card issued by MBNA (e.g. Alliance & Leicester, MBNA itself, Sony, Virgin), Egg card or the Post Office card

alternatively, you can use Egg Money (not to be confused with the Egg card) in conjunction with any 0% or low-rate balance transfer card.

Mint periodically issues credit card cheques, which can be paid directly into a current account. Unless you already have them, this is the least satisfactory option, as Mint cheques cannot be ordered and you never know when the next ones will turn up in the post.

Which option is best depends to some extent on which cards you have at the mo.

To maximise the 0% period, 16 months is currently available to new customers from Virgin. There's a 2.98% handling charge

http://uk.virginmoney.com/credit-card-v3/

Alternatively, you'd get 14 months from Egg card

http://new.egg.com/visitor/0,,3_84106--View_1763,00.html

I've just looked at the Egg Card pages and it says this

---

"4. INTEREST

4.1 We will charge interest:

• on Purchases put on the Account until 1 February 2009 at an annual rate of 0% fixed until 1 February 2009, and thereafter at a standard variable annual rate of 16.9%;
• on Transferred Balances put on the Account until 1 February 2009 at a monthly rate of 0% fixed until 1 February 2010, and thereafter at a standard variable annual rate of 16.9%;
• on Cash Advances at a standard variable annual rate of 24.9% if your APR is 16.9%(variable), 25.9% if your APR is 19.9%(variable); and
• otherwise, at a standard variable annual rate of 16.9%.

• ---

• 
  Would what you are suggesting not count as a Cash Advance and therefore not get the 14 months or am I reading this wrong?

NickX

molley wrote: »

Would what you are suggesting not count as a Cash Advance and therefore not get the 14 months or am I reading this wrong?

No, with the cards that Moggles has specifically mentioned, you can transfer funds directly to your Bank Account and it is classed as a Balance Transfer.

This is known as SBT (Super Balance Transfer) and is mentioned frequently on the site if you do a search.

Earlier this year I took out a Virgin Atlantic card and within a matter of days I had £10,000 moved straight into my Bank Account :beer:

YorkshireBoy

NickX wrote: »

you can transfer funds directly to your Bank Account and it is classed as a Balance Transfer.

Egg cover it in the T&C's...

http://new.egg.com/visitor/0,,3_11087--View_1068,00.html (see section 9.3)

...and the FAQ...

What balances can I transfer?


MBNA, and MBNA run cards, call it a 'money transfer' and the 0% rate for this is shown in their T&C's/summary box.