Need to move a loan of $14000 elsewhere

ellave on 11/02/2016 - 14:47

I discovered that my personal loan with NAB has gone up from about 7% to 13.5% sometime in the last year, I did call them but they were unable to advise why or when exactly only that the interest rate wasn't fixed but the lady was surprised as she could see where the rate was at a year ago. I did work for NAB but they advised that wasn't anything to do with it, my account is still marked as staff.

So been looking at other places to shift the loan to, best seems to be around 7.5% with Peoples choice, but i've seen people on here talk about cheque to self with citi, would this be my best option? I would hope to have about $10000 of it paid of in 18 months so could just shift any remaining balance to another 0% card. I can see the reward platinum has 18 Months interest free but comes with a $200 fee, do citi often have offers with no annual fee

Financial

Comments

  • koplik8 on 11/02/2016 - 15:04

    I got a balance transfer with a Westpac low rate credit card. I got 0% for 24 months. Annual fee is $65.
    You'll smash it rather than taking out a personal loan.
    I've payed off so much debt doing a balance transfer rather than a personal loan.
    Plus if you want to pay off a personal loan early they charge you an exit fee.
    Find a credit car comparison online and find the best deal going with 0% and a low annual fee. Doesn't matter which bank. Then cancel the card when it's paid off.

    • ellave on 11/02/2016 - 15:14

      Thanks but how can I pay off a loan this way, that is why I though a cheque to self was the only option going the cc option

      • DJR9000 on 11/02/2016 - 15:29

        http://www.creditcardfinder.com.au/balance-transfer-a-person…

        There may be other providers that allow personal loan transfers but there's a start.

        Technically someone could transfer to one of the providers that allow transfers from personal loans and then after some time, do another balance transfer to a different credit card provider

        • ellave on 11/02/2016 - 15:38

          Thanks wasn't aware Virgin had the same offer, they look good although comes with a 2% fee

        • DJR9000 on 11/02/2016 - 15:41

          @ellave:

          2% of 14000 is significant too, you'll be looking at $280.

          Someone in your situation might pick the one with the annual fee as it would be cheaper, there is no transfer fee.

        • ellave on 11/02/2016 - 16:08

          @DJR9000:

          Yep noted, I think its still cheaper then paying 2 lots of annual fees

        • DJR9000 on 12/02/2016 - 09:14

          @ellave:

          Maybe you would only have to pay one lot though, then do another balance transfer to a $0 annual fee card with 0% balance transfer offer before 12 months is up.

  • koplik8 on 11/02/2016 - 15:07

    Here I found one for you:

    https://www.creditcard.com.au/low-balance-transfer-credit-ca…

  • dandandan on 11/02/2016 - 15:46

    Citi would be your best option with cheque to self however If you have credit cards already with $14,000 available, you could apply for the Westpac 24months interest free offer, with $150 annual fee, saying you would like to do a balance transfer in the application and if approved do a cash advance on your other cards. This is not a perfect strategy and you would pay cash advance fees of say 2-3% however it is another option you have.

  • ellave on 12/02/2016 - 15:52
    +1

    I got approved for the Virgin card, I'll take the $280 fee as i will still be up over $2000 over the 18 months. Thanks for your help OZB

  • ellave on 23/02/2016 - 19:06
    +1

    Just an update on this, I got my card through the post with a massive $2000 limit, I applied for $20,000! So they wouldn't increase the limit so I eneded up cancelling, quite annoying as I've put a mark against my credit check for nothing. I very much doubt they give anyone a decent card limit for these most basic cards.

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