This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules . Thank you for your understanding. [Deleted User] Posts: 35,383 Forumite 13 February 2017 at 3:17PM LKAY wrote: » Can anyone think of a reason why this is not feasible or a good idea? Two main reasons. You're unlikely to get a 0% card if you have limited credit history Mortgage lenders generally don't accept card payment unless you are in arrears. Oh, also the ERC, if you are 'tied in' to your rate. 0 Money_Rollercoaster Posts: 247 Forumite 13 February 2017 at 3:42PM edited 13 February 2017 at 3:47PM Why the big rush? What's the total saving once you've taken into account the early redemption fee (£200) and the money transfer fee money that the CC provider would charge (probably another £100)? I bet it isn't much and there's even a chance that by refinancing using the CC could cost more ... Oh, and if you check with your mortgage provider, you can probably shorten the term by overpaying - most likely up to 10% of your outstanding balance without any penalty. 174 BPM >> CC Balance (0%) -£3,565.99 - Target DFD Dec 2017 >> Loan (Car) (3.1%) -£19,803.74 - Target DFD Nov 2020 0 mrmagooooooo Posts: 95 Forumite 13 February 2017 at 4:20PM Yeah id just give them a call and see how much you can overpay each month. The credit card route doesn't seem worth it at all. You probably wouldn't save anything. 0 Ben8282 Posts: 4,821 Forumite 14 February 2017 at 10:49AM From a purely financial point of view your plan makes little sense and would probably end up costing you more in the long run. You would also need a money transfer card as you cannot bt to a mortgage account. However, it that is what you want to do, perhaps because you want to remove the charge from the mortgaged property or another valid reason, there is nothing wrong with your plan as such so long as you are able to repay the 0% balance before the promotional period ends. If your outstanding mortgage balance is only £5k then presumably you are a homeowner with a substantial equity and your credit files will reflect this. I find it so hard to imagine people with mortgages etc who say they have never had a credit card in their life. I seriously wonder how they cope. Like others I wonder if you will be able to get a 0% card with no credit card history but I think that your homeowner status and almost fully repaid mortgage will perhaps give your chances a boost. 0 LKAY Posts: 23 Forumite 15 February 2017 at 12:39PM Many thanks for your responses. Food for thought. On balance, I have decided to continue for the next 12 months and let it run to its natural end. This is mainly because I don't want to take out a credit card (don't believe in them!! ) Thanks again for your useful input. 0 [Deleted User] Posts: 35,383 Forumite 15 February 2017 at 12:41PM LKAY wrote: » I don't want to take out a credit card (don't believe in them!! ) I've seen them. They definitely exist. 0 LKAY Posts: 23 Forumite 16 February 2017 at 9:53AM :T Ha, I like it - not in my world 0 newship Posts: 7 Forumite 16 February 2017 at 10:06AM Ben8282 wrote: » From a purely financial point of view your plan makes little sense and would probably end up costing you more in the long run. You would also need a money transfer card as you cannot bt to a mortgage account. However, it that is what you want to do, perhaps because you want to remove the charge from the mortgaged property or another valid reason, there is nothing wrong with your plan as such so long as you are able to repay the 0% balance before the promotional period ends. If your outstanding mortgage balance is only £5k then presumably you are a homeowner with a substantial equity and your credit files will reflect this. I find it so hard to imagine people with mortgages etc who say they have never had a credit card in their life. I seriously wonder how they cope. Like others I wonder if you will be able to get a 0% card with no credit card history but I think that your homeowner status and almost fully repaid mortgage will perhaps give your chances a boost. You 'seriously wonder how they cope' It's very simple, each month spend slightly less than your income. I am at a loss as to why this simple point is not understood. 0 chattychappy Posts: 7,302 Forumite 16 February 2017 at 10:36AM edited 16 February 2017 at 10:49AM newship wrote: » You 'seriously wonder how they cope' It's very simple, each month spend slightly less than your income. Er... that's what most people who have credit cards do. But, credit cards offer: Flexibility - you can make a large purchase without having to transfer funds into your current account/draw cash first. Meanwhile your funds can be kept in a savings account. S75 protection (subject to provisos). A cheap way of drawing cash overseas. A way of spreading a large purchase over a few months (and with a 0% card paying no interest for the privilege). Something to show when you hire a car or check into a hotel. Better regulatory protection than debit cards. Cash backs/airmile/nectar type promos. Easy to have multiple ccs (unlike debit cards where you need a current account for each), useful in the case of blocks, especially when abroad. Building a credit history should you wish to apply for a mortgage later on. And, of course, a useful form of borrowing if you need it. I can cope without them in the same way I can cope without my mobile phone. Not very well. newship wrote: » I am at a loss as to why this simple point is not understood. Hopefully you can understand the simple points above. 0 Flexibility - you can make a large purchase without having to transfer funds into your current account/draw cash first. Meanwhile your funds can be kept in a savings account. S75 protection (subject to provisos). A cheap way of drawing cash overseas. A way of spreading a large purchase over a few months (and with a 0% card paying no interest for the privilege). Something to show when you hire a car or check into a hotel. Better regulatory protection than debit cards. Cash backs/airmile/nectar type promos.

Easy to have multiple ccs (unlike debit cards where you need a current account for each), useful in the case of blocks, especially when abroad. Building a credit history should you wish to apply for a mortgage later on. And, of course, a useful form of borrowing if you need it. Confirm your email address to Create Threads and Reply 🚀 Getting Started Our Getting Started Guide will help you get the most out of the Forum 355.5K Banking & Borrowing 254.8K Reduce Debt & Boost Income 456K Spending & Discounts 248.1K Work, Benefits & Business 605.5K Mortgages, Homes & Bills 179K Life & Family 263.3K Travel & Transport 1.5M Hobbies & Leisure 16.1K Discuss & Feedback 37.7K Read-Only Boards Is this how you want to be seen?