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  • FIRST POST
    • britishboy
    • By britishboy 5th Aug 18, 7:20 PM
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    britishboy
    Help with 6.1% loan onto 0% credit card
    • #1
    • 5th Aug 18, 7:20 PM
    Help with 6.1% loan onto 0% credit card 5th Aug 18 at 7:20 PM
    I took out a loan with M&S bank 2 years ago (opened on 21 May 16 over 72 months) for 12,000, at 6.3% APR. I currently pay back 200 per month. (dont know outstanding balance off top of my head)



    I've been offered a 0% BT credit card from Lloyds (who i bank with) for 32 months at 1.4% transfer fee, is it worth me applying for the CC and paying off the loan?
Page 1
    • eskbanker
    • By eskbanker 5th Aug 18, 7:49 PM
    • 8,192 Posts
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    eskbanker
    • #2
    • 5th Aug 18, 7:49 PM
    • #2
    • 5th Aug 18, 7:49 PM
    A balance transfer doesn't help in paying off a loan as BTs are only for transferring balances from one credit card to another.

    If M&S allow loan repayments by CC then you could do that (with a separate card) and then transfer the balance to Lloyds, or otherwise look at money transfer cards, which would allow you to pay the money into your bank account (and then from there to M&S): https://www.moneysavingexpert.com/credit-cards/money-transfers/

    Obviously all of the above is conditional on securing a high enough credit limit in each case....
    • TadleyBaggie
    • By TadleyBaggie 5th Aug 18, 7:51 PM
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    TadleyBaggie
    • #3
    • 5th Aug 18, 7:51 PM
    • #3
    • 5th Aug 18, 7:51 PM
    Balance transfer is for credit card to credit card transfer, it's unlikely that M&S will allow it. You would need a card with a money transfer option.
    • britishboy
    • By britishboy 5th Aug 18, 7:56 PM
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    britishboy
    • #4
    • 5th Aug 18, 7:56 PM
    • #4
    • 5th Aug 18, 7:56 PM
    Ahhh OK thanks people, hadnt even thought of that. I'll take a look at the link Eskbanker and look into a money transfer card


    Thanks both of you
    • foxy-stoat
    • By foxy-stoat 6th Aug 18, 2:00 PM
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    foxy-stoat
    • #5
    • 6th Aug 18, 2:00 PM
    • #5
    • 6th Aug 18, 2:00 PM
    My Lloyds card has a money transfer option - if you can pay it all down within the intro period then go for it, or get another BT card and do the shuffle thing for a few years.
    • sparkey1
    • By sparkey1 6th Aug 18, 10:56 PM
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    sparkey1
    • #6
    • 6th Aug 18, 10:56 PM
    • #6
    • 6th Aug 18, 10:56 PM
    Yes, but M&S Money is HSBC, and the way they work for loans is that you ring them up and get a settlement figure, and then pay that in the timescale provided. Or you pay the full balance and they then refund you the interest that has been charged up front. Just something to bear in mind, unless cleared, they will continue to take the 200 per month, until cleared. They dont lower you payments.
    • britishboy
    • By britishboy 9th Aug 18, 10:53 AM
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    britishboy
    • #7
    • 9th Aug 18, 10:53 AM
    • #7
    • 9th Aug 18, 10:53 AM
    Yes, but M&S Money is HSBC, and the way they work for loans is that you ring them up and get a settlement figure, and then pay that in the timescale provided. Or you pay the full balance and they then refund you the interest that has been charged up front. Just something to bear in mind, unless cleared, they will continue to take the 200 per month, until cleared. They dont lower you payments.
    Originally posted by sparkey1

    Interesting sparkey1, i did ask on here a few months ago if interest was added at the start of the loan, as with my calc it had been. So if i paid it all off, I'd pay the full amount (including the interest) and then possibly have to chase them for the refunded interest?
    • britishboy
    • By britishboy 9th Aug 18, 10:57 AM
    • 2,644 Posts
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    britishboy
    • #8
    • 9th Aug 18, 10:57 AM
    • #8
    • 9th Aug 18, 10:57 AM
    My Lloyds card has a money transfer option - if you can pay it all down within the intro period then go for it, or get another BT card and do the shuffle thing for a few years.
    Originally posted by foxy-stoat

    Just had a look on Lloyds and couldnt see any offer of a money transfer card?



    Even if i could, not sure how to work out the possible savings of closing my loan early with a payment from a mone transfer against the money transfer fee
    • zx81
    • By zx81 9th Aug 18, 11:02 AM
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    zx81
    • #9
    • 9th Aug 18, 11:02 AM
    • #9
    • 9th Aug 18, 11:02 AM
    So if i paid it all off, I'd pay the full amount (including the interest) and then possibly have to chase them for the refunded interest?
    Originally posted by britishboy
    No. You'd pay the settlement figure, which would account for the saving on interest.

    Just had a look on Lloyds and couldnt see any offer of a money transfer card?
    Originally posted by britishboy
    It's an offer for existing customers only.
    • foxy-stoat
    • By foxy-stoat 9th Aug 18, 11:18 AM
    • 2,796 Posts
    • 1,584 Thanks
    foxy-stoat
    Just had a look on Lloyds and couldnt see any offer of a money transfer card?



    Even if i could, not sure how to work out the possible savings of closing my loan early with a payment from a mone transfer against the money transfer fee
    Originally posted by britishboy
    3% fee and you have to pay it down over 24 months.

    On 10K, 300 fee pay 430 a month and your clear in 2 years - or do another shuffle and pay another fee every 2 years.

    I would just overpay your current loan - 6% isnt too bad really.
    • redux
    • By redux 9th Aug 18, 11:47 AM
    • 18,555 Posts
    • 24,767 Thanks
    redux
    3% fee and you have to pay it down over 24 months.

    On 10K, 300 fee pay 430 a month and your clear in 2 years - or do another shuffle and pay another fee every 2 years.

    I would just overpay your current loan - 6% isnt too bad really.
    Originally posted by foxy-stoat
    The current loan balance would be about 8178

    Speeding up loan repayments to 2 years would be 547 interest (compared to 1048 on remaining 46 months), versus 250 transfer fee to the card

    If there's any chance that repaying in 2 years is a bit tight on time, the transfer to a card is a bit risky, unless following up with another transfer. But a second transfer then with a 3% fee for say only a year doesnt work out cheaper than having stayed with the original loan.

    So it might be worth hedging with a split, considering one transfer now to cover for about half to two-thirds the loan.

    Or find transfer arrangements with lower fee than 3%
    Last edited by redux; 09-08-2018 at 11:56 AM.
    • britishboy
    • By britishboy 9th Aug 18, 11:52 AM
    • 2,644 Posts
    • 317 Thanks
    britishboy
    It's an offer for existing customers only.
    Originally posted by zx81

    for existing Lloyds bank customers, or for exisiting Lloyds CC customers? Just logged on and still couldnt see it
    • britishboy
    • By britishboy 9th Aug 18, 11:56 AM
    • 2,644 Posts
    • 317 Thanks
    britishboy
    The current loan balance would be about 8335.

    Speeding up loan repayments to 2 years would be 558 interest (compared to 1068 on remaining 46 months), versus 250 transfer fee to the card

    If there's any chance that repaying in 2 years is a bit tight on time, the transfer to a card is a bit risky, unless following up with another transfer. But a second transfer then with a 3% fee for say only a year doesnt work out cheaper than having stayed with the original loan.

    So it might be worth hedging with a split, considering one transfer now to cover for about half to two-thirds the loan.

    Or find transfer arrangements with lower fee than 3%
    Originally posted by redux

    Thanks redux, I'd never of worked that out



    i initially asked after I saw the Lloyds offer of 1.4%, but since found out it was for card to card transfers only. Will keep looking for a low rate money trasfer card and see (I may be back with more calculations I'm afraid...)
    • redux
    • By redux 9th Aug 18, 12:13 PM
    • 18,555 Posts
    • 24,767 Thanks
    redux
    Thanks redux, I'd never of worked that out
    Originally posted by britishboy
    Guardian loan calculator

    No political affiliation implied; I just like the format

    n.b. I've since edited the numbers slightly, as I'd missed the July repayment off the balance
    Last edited by redux; 09-08-2018 at 12:32 PM.
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