transferring a car loan onto a credit card

fastcam

I have a car loan with black horse,paying £174 a month over 48 months.Is it possible to pay the loan off with a low interest rate credit card,so i can repay the loan quicker if i want,also as the loan is with black horse im unable to sell it if i wanted.I have looked at martins advice but dont understand how to get a low interest card to pay the loan.

A Step-By-Step Guide using a £5,000 required loan as an example
STEP 1: Life of Balance card Egg Money

Example Scenario

Loan needed: £5,000
Bank account: £0
Egg Money: £0
Long term credit card: £0
Ask your long term cheap balance transfer card to do a £5,000 balance transfer from Egg Money. What happens in practice to ‘shift the debt’ is the long term card pays £5,000 to the Egg Money card, even though no debt there exists.*

*This shouldn't normally be a problem, as most credit card's terms don't specific a debt must exist to do a balance transfer, however if specifically asked then don't lie, as that'd be fraudulent.

STEP 2: Egg Money Current Account

Example Scenario

Loan needed: £5,000
Bank account: £0
Egg Money: £5,000 in credit
Long term credit card: £5,000 in debt
Now we need to get the cash that’s in Egg Money into your bank account. This is simple as Egg Money has a direct facility to do it.

Go to the balance transfer section of its website, and then select it to do a balance transfer to your bank account. In other words it’ll pay the five grand into your bank account at no charge (because you're in credit).

STEP 3: Current Account Loan

Example Scenario

Loan needed: £5,000
Bank account: £5,000
Egg Money: £0
Long term credit card: £5,000 in debt
You now have £5,000 in your bank account, which you can use for the purpose of the loan, as you choose.

The same amount of cash is sitting on your credit card at the low long term balance transfer rate, thus effectively you have a loan at this rate.

Bokkens

There are two ways to do what you want to do,do as itemised by Martin's article (as above)or use what he calls a "super balance transfer card" a credit card that allows you to move credit card money into a bank account(Mint,Virgin A&L are examples) where you use it to pay for things(your loan) .The money you have put in the bank account is now on your credit card as a debt and has to be repaid this may be at 0% interest for a few month(upto 15mnth in some cases) but you still have to repay it .
Look at and understand Martin's articles first before you do anything if you are still stuck you will need to get first hand practical advice and the Citizens Advice Bureau is the place to visit as their help is free.
Good luck

fastcam

The super balance transfer cards that you mention sound ideal,i couldn't find any info on these cards.Any more info on these cards would be great or even a link to them.
thanks

Russ_Vengeance

I've just taken out an Egg card with 0% on BT's for 15 months. I've BT'd a £3000 graduate loan onto it, that was costing me £40/month in interest! By the time the 0% rate is up, I'll have paid most of it off. Any that's left I'm gonna BT again. That sounds kinda like what you wanna do.

You could check with Blackhorse tho, just to make sure they're not gonna charge you extra for paying the loan off early. They're swines like that...:mad:
Good luck

x

Forgot to add, I applied at www.egg.com. Make sure its the EGG CARD not the EGG MONEY CARD tho. Apparently you don't get very high limits with that. Or so I've heard...