"Need a '0%' cash loan? Use a money transfer card"

"If you need actual cash, or to, say, pay off an overdraft, a few cards offer new cardholders 0% money transfers. Here, for a one-off fee, a card'll transfer cash to your bank account, which you then owe to it.

Use our 0% Money Transfers Eligibility Calc to see what you can get, eg, MBNA's* up to 28mth 0% money transfer fee is 2.99% of the amount shifted (so £30ish per £1,000). For longer, Tesco Bank* is up to 36mths 0%, with a higher 3.94% fee.

Once you have the card, ensure you make the min repayments and clear the borrowing within the 0% period. Fail to do that and the rates rocket (eg, MBNA is 23.9% and Tesco 20.6% rep APR).

How does it compare to a standard loan? If you borrowed, for instance, £1,250 over 2yrs, done right the cheapest 2yr money transfer card fee would be £40. The market's cheapest loan for the same is Ratesetter's 6.7%, costing £90.

Money transfers are complex, so make sure you understand exactly how they work first - read our full 0% Money Transfers guide."

Great read and thanks for sharing! I wonder how many people miss clearing the borrowing period... and what is the non-financial impact of the default on the borrower... I'm always curious about people's motivations and borrowing behavior.
I'm glad you liked it :)
We use cookies to process requests that you make in a single session to be able to recognise your browser during a subsequent session and to understand the usage of our website. In addition, we use third-party marketing and social media cookies from third-party vendors, which record web activities of users over a longer period of time. You can delete saved cookies or change your browser settings at all time so that no cookies are being saved. By using our website you consent with the above. More info.