Loan to credit card?
- Thread starter cimbom
- Start date
Hello,
Just wondering if anyone knows whether it's possible to refinance a personal loan onto a credit card at all? Would be a good way to take advantage of low/no interest promo periods and the ability to reduce the limit while paying it off but I'm guessing it can't be done?
Thanks
I think only as cash withdrawal, which has higher interest rates, upfront fees, and doesn't count towards promo periods.
Cash withdrawals DO work with balance transfers to new cards though...
ie. old ccard, cash advance $x, take fee hit, new ccard, balance transfer -> 0% interest for 6 months or whatever they're offering.
Beware you understand what exact the CC is offering, some do 0% purchase, some do 0% balance transfer. The interest they charge is completely different!
I guess "refinance" personal loan with CC will be quite messy. Why not simply get a low/0% purchase CC and pay EVERYTHING you can on it, then repay your PL with the extra cash on hand?
If you already have a CC with fair amount of balance, get a low/0% balance transfer.
I guess "refinance" personal loan with CC will be quite messy. Why not simply get a low/0% purchase CC and pay EVERYTHING you can on it, then repay your PL with the extra cash on hand?
If you already have a CC with fair amount of balance, get a low/0% balance transfer.
max limit out ASAP lol hows that work by getting into more debt ?
so with 2x cc = how much annual fees ? can we turbo charge this strat by adding more cc's then we'll never have to pay back the debt !! just move it onto the next cc
is this the same strat positive realestate youtube video teach you ?
lol hows that work by getting into more debt ?so with 2x cc = how much annual fees ? can we turbo charge this strat by adding more cc's then we'll never have to pay back the debt !! just move it onto the next cc
is this the same strat positive realestate youtube video teach you ?
First of all, I only share what I've done, surely there must be a better way to go and I love to hear if someone mind to share. Anyway, re your questions:
Why not? If the debt is 0% or very low interest and I can maximise the cash to repay or offset other debt with higher interest. As I said pay EVERYTHING (that you need to pay anyway) with CC instead of cash.
I guess OP and other SS'ers are keen to seen constructive comments in regards to taking advantage of the promo rate from cc. Love to hear someone who have better idea and willing to share.
max limit out ASAP
Why not? If the debt is 0% or very low interest and I can maximise the cash to repay or offset other debt with higher interest. As I said pay EVERYTHING (that you need to pay anyway) with CC instead of cash.
Everyone should choose their own strategy depends on their own situation. Depends on what credit limit on your cc, the saving from interest may or may not justify the effort and annual fee.
I didn't watch those videos...but what's wrong with them if they help someone to save money?!is this the same strat positive realestate youtube video teach you ?
I guess OP and other SS'ers are keen to seen constructive comments in regards to taking advantage of the promo rate from cc. Love to hear someone who have better idea and willing to share.
Agree. Pretty much did what you did (there's an old thread about this somewhere - I thought someone did bal tfr for a few years or something from one bank to the other?
)The Y-man
i would like to see numbers in action because i know theres always surcharge when using cc, even if there is 0% balance transfer it will still get you into more debt which defeats the purpose of savings, we cant just live on credit forever someone has gotta pay.
best advice i got which has got me to where i am is cut up the credit card.
best advice i got which has got me to where i am is cut up the credit card.
Various warnings and pitfalls discussed
http://somersoft.com/forums/showthread.php?t=41947&page=3
esp if you are about to get a loan.
The Y-man
http://somersoft.com/forums/showthread.php?t=41947&page=3
esp if you are about to get a loan.
The Y-man
Thanks for sharing the link Y-man.
I always like to see how other people use their credit cards to see if I can do it better.
We put all of our expenses on the credit card and make sure it is paid off in full by the due date. This means more money sits in our offset account which is always good.
One of the benefits for us is that we get points which we redeem for vouchers for things we need (petrol, food etc)
So we get free stuff - which is always good. However, we are disciplined in that we don't buy unnecessary stuff, have a reasonable limit, only the one credit card etc.
I guess it comes down to what will work for you.
I always like to see how other people use their credit cards to see if I can do it better.
We put all of our expenses on the credit card and make sure it is paid off in full by the due date. This means more money sits in our offset account which is always good.
One of the benefits for us is that we get points which we redeem for vouchers for things we need (petrol, food etc)
So we get free stuff - which is always good. However, we are disciplined in that we don't buy unnecessary stuff, have a reasonable limit, only the one credit card etc.
I guess it comes down to what will work for you.
my experiences with CCs
- Cash advances always come with a either a fixed fee or a % fee, thus doing a bal transfer completely pointless or just about eg with draw $10k, get charged $200 in fees, to save $250 in interest across 6-12 months or the other way round
- most credit cards have annual fees ranging from $59 to $250, getting a new card with bal transfer, say of $10k, saving your self 5% interest=$500, minus the $59-$250, is possible, but it would have to be 12 months or longer, anything less, your savings are minimal, Plus you get a credit hit on your record
-some people try and open online betting accounts, withdraw funds from their cc, and put it into their offset and pay it back after the 55 days, however, most card companies now classify online gambling as cash advances as of about 2 years ago
the only way I would think saving $$ on CC would be to get an annual fee free credit card which has 12months or longer interest free or 1% bal transfers
the only other way I could think of is obviously putting every single bill on credit card and taking advantage of the 55 days interest free, and putting it in offset, once again, your annual fee will chew up any benefits unless you are doing $10k per month+
if anyone knows how else to do it then id love to know
- Cash advances always come with a either a fixed fee or a % fee, thus doing a bal transfer completely pointless or just about eg with draw $10k, get charged $200 in fees, to save $250 in interest across 6-12 months or the other way round
- most credit cards have annual fees ranging from $59 to $250, getting a new card with bal transfer, say of $10k, saving your self 5% interest=$500, minus the $59-$250, is possible, but it would have to be 12 months or longer, anything less, your savings are minimal, Plus you get a credit hit on your record
-some people try and open online betting accounts, withdraw funds from their cc, and put it into their offset and pay it back after the 55 days, however, most card companies now classify online gambling as cash advances as of about 2 years ago
the only way I would think saving $$ on CC would be to get an annual fee free credit card which has 12months or longer interest free or 1% bal transfers
the only other way I could think of is obviously putting every single bill on credit card and taking advantage of the 55 days interest free, and putting it in offset, once again, your annual fee will chew up any benefits unless you are doing $10k per month+
if anyone knows how else to do it then id love to know
