Can an outstanding loan be classed as a balance transfer on a credit card?

13
Found 8th Feb 2015
We have a loan with Nationwide that has another 15 months to go. Its around 5% interest. We pay £239 per month. Ive been looking at credit cards and they say balance transfers from store cards are accepted. What about loans? Is there a better way to do this? Also, what CC do you reccommend and why? Thanks in advance. (I was looking at the Santander 123).
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Could you use a Money Transfer card to pay off the loan and then do a balance transfer from that card?
You need to ensure the card you are looking for allows 0% cash transfers to your current account (I.e. bank account).

You can then transfer £X from the card balance to your current account, pay off the loan, then ensure you make at the very least the minimum repayments on the credit card to ensure you don't get any nasty surprises and continue with the 0% rate.

Ask! That's the biggest failure - people are afraid to ask before they commit. Ask the CC company exactly how much you will be charged for transferring £X to your bank account - note not all cards offer 0%, some do, such as the Post Office.

You must ensure you pay at the very least the minimum card repayments or you will likely end up spending even more!
aau1

Could you use a Money Transfer card to pay off the loan and then do a … Could you use a Money Transfer card to pay off the loan and then do a balance transfer from that card?


So Id have to apply for 2 cards?
GrantG182

You need to ensure the card you are looking for allows 0% cash transfers … You need to ensure the card you are looking for allows 0% cash transfers to your current account (I.e. bank account).You can then transfer £X from the card balance to your current account, pay off the loan, then ensure you make at the very least the minimum repayments on the credit card to ensure you don't get any nasty surprises and continue with the 0% rate. Ask! That's the biggest failure - people are afraid to ask before they commit. Ask the CC company exactly how much you will be charged for transferring £X to your bank account - note not all cards offer 0%, some do, such as the Post Office. You must ensure you pay at the very least the minimum card repayments or you will likely end up spending even more!



Ive never had a cc before, was thinking it would be handy to protect purchases. But if I can reduce my loan repayments too it will be a bouns. You're right though, asking is the best/only way. Im just unsure if its possible and wondered if anyone else had done it. Thank you both for your advice, its really appreciated.
Check out MSE for credit cards.
if you dnt have one stay away they are great when u can afford them but when something goes wrong they can cause trouble... why not just pay more to loan and pay it off quicker..check for early repayment penalties...
Angel_Of_The_North

Ive never had a cc before, was thinking it would be handy to protect … Ive never had a cc before, was thinking it would be handy to protect purchases. But if I can reduce my loan repayments too it will be a bouns. You're right though, asking is the best/only way. Im just unsure if its possible and wondered if anyone else had done it. Thank you both for your advice, its really appreciated.



Be careful with your loan and make sure they won't penalise you for paying it off early, by hitting you with a charge.
a loan is not classed as a balance transfer so you won't be able to.

you would have to pay the loan off with another credit card then transfer that balance but nationwide would have to accept credit card payment to pay off the loan and there is no early exit penalty.
Look at the MBNA cards think it's probably one called fluid that has the best rates at the moment then request a bank transfer and use that to pay off the loan. Couple of watch outs they will charge you in the same way as a balance transfer probably around 3% also check if you can pay off the loan you should be able to and may get some interest back as well.
Thanks for all your answers. I think I might give Nationwide a call and see if theres any penalties. If my interest is 5%, how much of my monthly payment will be on interest? Is it around £12?
Angel_Of_The_North

Thanks for all your answers. I think I might give Nationwide a call and … Thanks for all your answers. I think I might give Nationwide a call and see if theres any penalties. If my interest is 5%, how much of my monthly payment will be on interest? Is it around £12?



it will be roughly 5% of the outstanding loan divides 12.
you will also need to make sure that the credit card payment to pay off the loan is not considered as a cash withdrawal by the credit card as they will charge you a fee which will negate any possible saving by paying off the loan.

in short i don't think you can transfer the loan to the credit card efficiently.
Edited by: "mutley1" 8th Feb 2015
mutley1

it will be roughly 5% of the outstanding loan divides 12.you will also … it will be roughly 5% of the outstanding loan divides 12.you will also need to make sure that the credit card payment to pay off the loan is not considered as a cash withdrawal by the credit card as they will charge you a fee which will negate any possible saving by paying off the loan.in short i don't think you can transfer the loan to the credit card efficiently.



Thanks Mutley, torn between chosing this and #8 as best answer!
Really apprechiate everyones help, thanks guys n girls xxx
Angel_Of_The_North

Thanks Mutley, torn between chosing this and #8 as best answer! Really … Thanks Mutley, torn between chosing this and #8 as best answer! Really apprechiate everyones help, thanks guys n girls xxx




No disrespect to you or mutley but there are better answers on here than either of those including the first one and the fifth
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