Balance Transfer Personal Loan To Credit Card

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.

Balance Transfer Credit CardTo 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 balance 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 balance 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 Post Office credit card allows a personal loan to be paid off via a 0% money transfer, although this is not promoted anywhere on their website.

Post OfficePost Office Platinum credit card

  • 0% for 18 months on money transfers with a 2.98% fee
  • 0% for 18 months on standard balance transfers with a 2.98% balance transfer fee
  • 0% on purchases for first 3 months
  • Representative 17.8% APR variable
  • Representative Example: 17.8% p.a. variable on card purchases. This is equivalent to 17.8% APR representative (variable) based on an assumed credit limit of £1,200
  • More Information >>

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% balance transfer offer ends, you can then look to do a further 0% balance transfer from one credit card to another.

Balance Transfer Expert has:-
  • 121 UK 0% balance transfer credit cards available today
  • Offering 0% on balance transfers for up to 34 months
  • With special offer balance transfer fee refunds of up to 1.5%

Find A Balance Transfer Credit Card >>

Balance Transfer Credit Cards

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