Cheap Credit Card Loans Discussion Area

NRogalska

OK - the examples given all seem to be for under £10k.
We're looking to get a large amount of finance, not to clear existing debt (we're lucky enough to currently be debt free (we use credit cards but pay off in full each month) but for a number of home improvements and want to know the best way to get £25k!
The article suggests at present there are only 2 cards that offer balance transfers direct into your account - we would be looking at these initially as we want to pay a number of different suppliers, etc.
I have calculated that if we use Virgin with 0% for 18 mths with a 4% fee which @ 1% would require a minimum repayment of £250 (??). We would be looking to repay £500 however. For the 18 months we would then pay £1,000 for the fee and have a balance at the end of the 18 months of £16,000 (£25k - (£500x18=)£9000). This is where I guess the biggest risk lies. If we then stay on this card we will then be charged interest at 20.9% APR and according to the calculator if we also remain paying £500 per month it would take a further 50 months and end up costing a further £7,688.93 - equiv of 13.2% APR - clearly not the cheapest option.
If however, and assuming such deals are still available and our credit is still good, at the end of the 18 months if we get a new card and do a balance transfer such as currently available 0% for 13 months with 1.9% fee, this would cost £304.00 (£16k x1.9%) and take us to a total of 31 months of repayments.
If these are still at £500 per month at the end of this second card's promo life, we would have repaid a further £6,500 leaving a balance of £9,500.
Again taking on the next best card deal of 2.9% fee for 0% for 21 months we could reduce the monthly repayments to £475 per month and repay in full in 20 months - before this new deal period expires.
This would mean using this system of balance transfers we would only pay the transfer fees as 'interest' - which total £1,579.50 and would spread the 'loan' over 51 months (9 months shorter than we would apply for as a standard loan). This is the equivalent of 6.318% (please can someone confirm this) which is still better than current loan deals.
The dangers are of course that these new cc deals won't be available or our credit ratings will be negatively effected by taking out new cards and will prevent this from working - if this ends up being a case perhaps then taking out a normal loan would then be the option..?
Could someone a) check my calculations and assumptions (and point out any errors); b)give some opinion if this is indeed a good way to get the money we desire; c) advise if the effort would actually be too much and that a standard loan would be the best option to avoid any pitfalls; and d)advise of any further dangers I may have overlooked.
Hoping for some help asap!

NRogalska

p.s. I also forgot to add I checked the MBNA rate for life card and the £25k with fee of 1.5% and monthly repayments of £500 a month (with no drop after 31 months as per the previous example) would take 59 months with total interest paid of £4,140.88 - the calculator says this is equivalent to 6.6% APR..
Can someone explain how the APR is then calculated and what should the APR be my previous example of switching cards/balance transfers (which gives a TOTAL of 6.318% 'interest')..
Finally, can anyone confirm if either the Virgin or MBNA cards will do a £25k balance transfer?? Cheers!

marksmith001

Yeah its really informative. i like to use this information while getting loan from any where.

Anneeinstein

It is easy to fall for the advertising of debt consolidation companies which promise to reduce or eliminate your credit card balances. However, it's wise to research any claims from services offering to reduce or eliminate your debt through consolidation.

johnsenfrankin

I think credit card loans are the best loans because this service required less documentation and time and easy repayment facility are also available...

scotschick_2

Hi All,

I was looking with interest at this thread. I have just been reading the thread on getting cash transferred to yur bank account at 0%...and have a question around it from this section of the article:

First and foremost, a huge warning... many cards allow you to pay cash into your bank account; the difference is most charge a fortune for it. The key to a super balance transfer is that you’re charged the special promotional interest rate. So, to get this, never ever withdraw cash and never try and spend on the credit card. Instead, just ask the card provider to...
"Do a balance transfer to my current account"
This way you'll get the cheap balance transfer deal, and the cash will end up in your bank. For double surety, you can even explain exactly what you think will happen, and get them to confirm it.

Can someone confirm if this can really happen?
I have a 0% card offer available with Virgin...does this mean that I could phone them up and ask for this with a cash transfer to my bank account?

Thanks in advance for all help.

WeParribiaFic

Would there ever be a situation where you would recommend either putting college tuition or books on a credit card and then paying it back that way?

ndrwlehman

Hi

if you want to know anything about the loans then feel free to visit Certified Forensic Loan Auditors these auditors provide you a complete information about your loan query

Thanks

benhenn

screw credit cards!!!

Xstyle

NRogalska wrote: »

OK - the examples given all seem to be for under £10k.
We're looking to get a large amount of finance, not to clear existing debt (we're lucky enough to currently be debt free (we use credit cards but pay off in full each month) but for a number of home improvements and want to know the best way to get £25k!
The article suggests at present there are only 2 cards that offer balance transfers direct into your account - we would be looking at these initially as we want to pay a number of different suppliers, etc.
I have calculated that if we use Virgin with 0% for 18 mths with a 4% fee which @ 1% would require a minimum repayment of £250 (??). We would be looking to repay £500 however. For the 18 months we would then pay £1,000 for the fee and have a balance at the end of the 18 months of £16,000 (£25k - (£500x18=)£9000). This is where I guess the biggest risk lies. If we then stay on this card we will then be charged interest at 20.9% APR and according to the calculator if we also remain paying £500 per month it would take a further 50 months and end up costing a further £7,688.93 - equiv of 13.2% APR - clearly not the cheapest option.
If however, and assuming such deals are still available and our credit is still good, at the end of the 18 months if we get a new card and do a balance transfer such as currently available 0% for 13 months with 1.9% fee, this would cost £304.00 (£16k x1.9%) and take us to a total of 31 months of repayments.
If these are still at £500 per month at the end of this second card's promo life, we would have repaid a further £6,500 leaving a balance of £9,500.
Again taking on the next best card deal of 2.9% fee for 0% for 21 months we could reduce the monthly repayments to £475 per month and repay in full in 20 months - before this new deal period expires.
This would mean using this system of balance transfers we would only pay the transfer fees as 'interest' - which total £1,579.50 and would spread the 'loan' over 51 months (9 months shorter than we would apply for as a standard loan). This is the equivalent of 6.318% (please can someone confirm this) which is still better than current loan deals.
The dangers are of course that these new cc deals won't be available or our credit ratings will be negatively effected by taking out new cards and will prevent this from working - if this ends up being a case perhaps then taking out a normal loan would then be the option..?
Could someone a) check my calculations and assumptions (and point out any errors); b)give some opinion if this is indeed a good way to get the money we desire; c) advise if the effort would actually be too much and that a standard loan would be the best option to avoid any pitfalls; and d)advise of any further dangers I may have overlooked.
Hoping for some help asap!

What did you do in the end??
I am after c. £25k too to buy a car...