Borrowing to pay off credit card.

C

colly

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I have 4k on a credit card. I have a personal loan that I want to top up and use this money to pay off the credit card. Is this a good enough reason to tell my bank why I want to borrow the money? I heard that sometimes they will not do it as it is "Transferring Debt". However the credit card is not with my current bank, it is an MBNA.

Is this ok or shall I just make up some other reason why I want to borrow the money instead?
 
I did that 3 years in a row ... the bandk (BOI) was happy enough each time ... I clearly stated that I wanted to reduce the APR I was being hit with ...

If you are already heavily leveraged, they may be slower ...
 
OK so if I don't want to take the risk of them saying no, what is a good general reason for taking out a loan? Holiday? Equipment for hobby? Better Car?
Any tips?
 
colly said:
OK so if I don't want to take the risk of them saying no, what is a good general reason for taking out a loan? Holiday? Equipment for hobby? Better Car?
Any tips?
Click to expand...

If your plan is to not mention the MBNA cc balance at all in applying for the term loan be aware that MBNA record cc payments at the ICB, so these would show up should the bank to whom you're applying for a term loan check your credit record.
 
Rather than taking out a personal loan for the CC just transfer the balance to another card that gives you an interest free period.

Ulster Bank offers 0% APR on balance transfers & purchases for 9 months from date account opened

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A couple of things to note.

1. Even though you are nor incurring any new interest on the balance the bank make you make the minimum repayment which is great because it makes you pay down the balance.

2. If you buy something else with the new card they charge you interest on this amount from day one. Any money that you lodge to the card goes straight off the interest free balance, not off the interest that you will incurr on your new purchases. Best thing to do is to transfer the balance to Ulsterbank and don't use it for anything. Keep the old card for purchases. When the interest free period is up look for other 0% transfer deals with other cards.

3. Be very careful that after the interest free period that you don't end up maxed out on both cards. It's been known to happen


Murt
 
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