"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."

https://www.moneysavingexpert.com/tips/18-07-2018
2 Comments
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 :)
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