Is this a good idea? Involves credit cards and loans, need a second opinion!

[Moneymoron]

Ok so I have a loan with a horrific interest rate. I currently owe nearly £1400 on it, but if I repay early there are no early payment fees and I'd only owe £980! So I guess the remainder is interest.

I don't have £1k to pay it off, but this is my idea

I have a credit card with a horrific APR (Aqua, it's something like 43%!!) which I never use I just kept from a few years ago. I've checked and it allows me to do a money transfer, meaning the money into my bank account, with a 3% fee (which I think is around £30?) on 0% interest for 3 months.

Then once I have the money in my account, I will pay off and close my loan. I will then balance transfer the money on the Aqua card, to a Barclaycard I have that is 0% interest for 12 months with a 0% transfer fee.

I can easily pay it off within 12 months, I'll pay it off in 8 if my maths is right.

But it's a lot of sending between different things so before I start the process I want someone who might understand this stuff a bit better to tell me if it is as good idea?

Seems to make sense. However it all hinges on paying the money out on the 0% cards on the correct days without fail or you get squished on default charges and interest. SO you need to be absolutely clear what you pay and when and do not fail to do that!
You need to check that if you send this credit card a payment on the x date it clears into your account on the (whatever date) to be before the payment due date. Be aware some cards take about 4 days to allocate your payment to your balance. That'll be where you default comes in, so you need to be absolutely sure how long these things take when you set up repayments

Great, thank you, I will figure out the specifics before doing anything. I appreciate the reply!

It sounds ok in principle but before you commit to it double check the offers that you have. Many offers start from the day you get the cards and so if you have had both cards for a while the offers may no longer be available to you.

Do check this bit: Barclaycard I have that is 0% interest for 12 months with a 0% transfer fee.
The 0% transfer fee is unusual.

Are you sure you can borrow at that rate too?

If it all stacks up. Sounds like a plan.

https://www.barclaycard.co.uk/personal/credit-cards/lead-bt-platinum-l

2.75% fee, which is more standard

This.

I have a Barclaycard and have never seen them offer a 0% transfer fee in 15 years. It's basically how they make money.

Yes re transfer fee but also check is poss to get a money transfer from Barclaycard for the 12 months.

Over paying the loan monthly may reduce that interest cost possibly to the tune of the balance transfer fee…

Also be aware, you cann only balance transfer upto 90% of your credit limit, So if your limit is 10,000 you could only put 9,000 on it by balance transfer.

I was trying to figure out why you would use the Aqua card and not just do a balance transfer to Barclaycard, but on re-reading, it looks like Aqua are allowing cash into your account whereas Barclaycard allow a balance transfer from another credit card? If that’s the case, I think your method makes sense, but it might be worthwhile asking Barclaycard if they will give you a money transfer offer as that will keep things simpler and reduce the fees.

I literally just did a 0% transfer fee 0%interest for 12 months on a £2000 debt. With Barclays.
Through money saving expert website.
In June I did the same with a NatWest card.
So yes, it is possible:)