The balance transfer personal loan to credit card process requires a credit card customer to follow a slightly different procedure from the normal balance transfer process, where you are transferring a balance from one credit card to another credit card.
To make a balance transfer from a personal loan to a credit card, you first have to do a 0% money transfer to your bank account, or as this is sometimes called a “0% super balance transfer“.
This 0% money transfer into your bank current account, transfers your requested balance transfer amount, subject to your credit limit, directly from the credit card company into your bank current account.
Using this interest free money in your current account from the 0% money transfer, you can then use these funds to pay off the personal loan.
This balance transfer of a personal loan to a credit card, via your current account, can effectively allow you to pay off a personal loan, charged at a higher rate of interest with the lower 0% interest deal on money transfers available for the length of credit cards introductory offer.
Balance Transfer Personal Loan To Credit Card
Not all credit cards will allow you to carry out a 0% money transfer into your current account in order to pay off your personal loan. Details of the balance transfer credit cards which currently do allow this type of transfer, with good acceptance rates, can be found below.
The following featured UK credit cards do allow you to make a balance transfer personal loan to credit card via a 0% money transfer to your bank account.
- 0% interest for up to 40 Months on balance transfers from account opening
- 2.69% balance transfer fee
- 0% interest for up to 40 Months on money transfers from account opening
- 3.94% money transfer fee
- 0% interest for 3 Months on purchases from account opening
- Earn Clubcard points wherever you use your card, plus your usual points in Tesco. Terms apply
- The 0% offer is applied to any balances or money transferred within the first 90 days of opening your account
- Apply online and get a decision within 60 seconds
- Annual Fee: None
- You have an annual income of at least £5,000
- You are at least 18 years of age
- You have a good credit history
- You live in the UK, or have a British Forces Post Office address
- You don't currently hold more than 1 Tesco Bank Credit Card
- You have not applied for a Tesco Bank Credit Card in the last month or have an application currently in progress
- 0% interest for up to 41 months on balance transfers (20.9% APR thereafter)
- 3.45% balance transfer fee for the first 60 days and 5% fee thereafter
- No purchases offer with this card
- 0% interest for up to 20 months on money transfers (22.9% APR thereafter)
- 4% money transfer fee for the first 60 days and 5% fee thereafter
- You cannot transfer a balance from another MBNA card
- Annual Fee: None
- Eligibility for this credit card depends on your circumstances and the results of MBNA's eligibility check
- The product, APR and promotional offer you could get may differ from the example
- You must be aged 18 or over
- You must hold a UK bank account
- You must have been a permanent UK resident for at least 3 years
- You must have a good credit rating and credit is subject to status
After repaying the personal loan with the balance transfer to current account, you will then have to make the normal monthly repayments to the credit card company.
Before you proceed with the balance transfer personal loan to credit card process there are a two issues to be aware of:-
- The handling fee for a money transfer to your current account can be more expensive than the handling fee for a balance transfer from credit card to credit card. The fee varies from card to card but you may end up paying a fee 1% more than the normal balance transfer fee to pay off your personal loan in this way.
- Remember to check that there is no early repayment fee for the personal loan. If there is an early repayment fee on the loan then this will reduce any savings you can make with the balance transfer.
In the event that you have not cleared all of the outstanding balance of the balance transfer personal loan to credit card before the card’s 0% money transfer offer ends, you can then look to do a further 0% balance transfer from one credit card to another.