Brabus
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Registered: 25th Oct 07
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I have a personal loan which i pay £160pm and is due to end in Nov this year, i have approx £1000 left on it.
Is it possible to get a 0% credit card, pay the outstanding balance on the loan and carry on paying the same £160 off the credit card each month. At 0% it would be paid off by July, saving me 3 months.
Is this possible or am i living in a dream world 
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ed
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Registered: 10th Sep 03
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If you can get the cards then you can keep on transferring the balance over to new 0% offers for as long they keep giving the cards out to you. It's called being a credit tart 
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Eck
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Registered: 17th Apr 06
Location: Lundin Links, Fife
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It is possible. With a One Card from HBOS you get 10months interest free on balance transfers. So depending if you get a high enough limit, paying off the loan could be a good solution. As long as you pay off the credit card in the correct time then it may benefit you. But is the £1000 a settlement figure, or is that an estimation? If the latter I suggest getting a correct figure. In theory it could be £1000 but they may add a charge, or in HBOS' case, upto 60 days of interest.
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Brabus
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Registered: 25th Oct 07
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quote:
Originally posted by Eck
It is possible. With a One Card from HBOS you get 10months interest free on balance transfers. So depending if you get a high enough limit, paying off the loan could be a good solution. As long as you pay off the credit card in the correct time then it may benefit you. But is the £1000 a settlement figure, or is that an estimation? If the latter I suggest getting a correct figure. In theory it could be £1000 but they may add a charge, or in HBOS' case, upto 60 days of interest.
TBF it is a 'guesstimation' however i will call them for an accurate figure. So does the limit you get depend on your credit history, or do they gradually increase it over time as you use it?
Also would me applying for a card, calling Lloyds TSB and paying off my loan using the card details be classed as a 'balance transfer'?
[Edited on 27-01-2009 by Brabus]
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Conway563
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Registered: 7th Jun 06
Location: Yate, Bristol
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Limit would depend on your history and current situation
As far as Im aware that would be classed as a purchase as opposed to a transfer
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Brabus
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Registered: 25th Oct 07
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Sound, so i need a 0% interest on purchases for at least 6 months and hope they give me a good limit. 
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deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
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I'm not sure you can pay off credit with credit. You need to speak to your loan provider if they'll accept payment via credit rather than debit card.
I know with Virgin Credit Cards (because I have one) you can do a balance transfer to your current/debit account, which means you could pay the loan off with your debit card.
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strick206
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Registered: 12th Apr 07
Location: Wigan Drives:Integra DC5
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Yes, but you need to check with the company the loan is from as they may charge you for paying it off early, if they do it may not be worth putting it on a credit card
Also, there are more risks with a credit card, it's far easier to run up a debt on a credit card than it is if you had a loan you're paying each month
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Twiggy
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Registered: 15th Oct 04
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Right you need one of these....
VIRGIN CARD
Have the balance of the loan put into you bank accout and pay off the loan.
Pay the 2.98% - £29.80 for £1000
Change your Standing Order to pay the card as we can only offer minimum/full payment direct debit. (I would also set a dd up for min anyway)
DO NOT USE CARD
[Edited on 27-01-2009 by Twiggy]
[Edited on 27-01-2009 by Twiggy]
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Welsh Dan
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Registered: 23rd Mar 00
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What Twiggy said. Do a balance transfer to your bank account, then pay off the loan.
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Brabus
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Registered: 25th Oct 07
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Wow, good advice Twiggy, ill get onto it, just about to call for an accurate settlement figure. 
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atz_49
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Registered: 17th May 05
Location: Midlands Drives: 350Z
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But would transfering X amount from your Virgin card to your bank account class as a purchase? I believe it would, hence you would only get 6 months at 0% APR not the 16 months like you would with a balance transfer?
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Twiggy
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Registered: 15th Oct 04
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quote:
Originally posted by atz_49
But would transfering X amount from your Virgin card to your bank account class as a purchase? I believe it would, hence you would only get 6 months at 0% APR not the 16 months like you would with a balance transfer?
No we call it a Money Transfer so its classed as a Balance Transfer
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