Balance Transfer Personal Loan to Credit Card: How to Save Money on Your Monthly Payments

Balance Transfer Personal Loan to Credit Cardr ways to save money on your monthly payments, a Balance Transfer Personal Loan to Credit Card could be the solution for you. By transferring your personal loan to a credit card, you can enjoy a lower interest rate and save money on your monthly payments.

In this blog post, we will discuss the benefits of balance transfer personal loans and how to choose the right credit card for you. We’ll also provide tips on how to make the most of your balance transfer!

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Introducing the balance transfer personal loan

For many people, personal loans can be a way to consolidate debt or finance a big purchase. But with interest rates as high as 35.99%, personal loans can also be expensive.

If you have a personal loan and are struggling to make your payments, you may be considering a balance transfer to a credit card. While this can be a good way to save on interest, it’s important to consider all of the factors before making a decision.

Balance transfer fees and length of offer periods are two important things to think about. Some credit card issuers don’t allow balance transfers from personal loans, so that’s something you’ll need to check first.

Plus, balance transfer fees can range from 3% to 5% of the amount you’re transferring, so you’ll want to make sure that the savings you’ll get from the lower interest rate will outweigh the cost of the fee.

Finally, balance transfer offers typically only last for 12-18 months, so you’ll need to have a plan in place for how you’ll pay off your debt before the intro period ends.

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Is it possible to pay off a personal loan with a balance transfer credit card?

A personal loan can be a great way to consolidate your debts and get a lower interest rate. But what if you’re struggling to make the payments? Is it possible to pay off a personal loan with a balance transfer credit card?

Yes, it is possible – although it’s not usually advertised by companies. Not all credit companies allow this, but some do – including Bank of America and Capital One.

With a balance transfer credit card, you can move your high-interest debt to a card with a low APR. Some cards give you almost two years at 0% APR, so you can pay off your debt without accruing interest. Shop around for a balance transfer card – there are many on the market now offering promotional APRs that last for six to 21 months.

Do keep in mind, though, that there may be fees associated with balance transfers. And if you’re not careful, you could end up worse off than before. So make sure you do your research and speak to a financial advisor before making any decisions.

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Credit card companies that allow Balance Transfer Personal Loan to Credit Card.

Choosing the best credit card for balance transfer personal loan to a credit card can be tricky. You’ll want to consider the length of the intro period, the balance transfer fee, and the APR after the intro period ends.

You’ll also want to make sure that the credit card issuer allows balance transfers from personal loans – not all do.

Here are a few balance transfer credit cards to consider:

#1. Bank of America

Bank of America is one of the few credit card companies that allow balance transfers from personal loans to credit cards. bank of America is a good choice if you’re looking for a balance transfer card with a long intro period.

Like Bank Americard® offer 0% Intro APR† for 18 billing cycles for purchases, and for any balance transfers made in the first 60 days of opening your account, and then the ongoing APR of 13.74% – 23.74% Variable APR.

However, you have to pay a balance transfer fee of $3 or $10, whichever is greater.

#2. Capital One 

Capital One is another balance transfer credit card issuer that allows balance transfers from personal loans. With Capital One VentureOne, you can enjoy a 0% intro APR on purchases and balance transfers for 15 months.

After that, the ongoing APR will be 15.24% – 25.24%Variable APR. There are 3% balance transfer fee, but no annual fee.

#3. Discover

Discover also allows balance transfers from personal loans to credit cards.

The Discover it® balance transfer card gives you 15 months at 0% APR for balance transfers. After that, the ongoing APR will be 12.74% – 23.74% Variable APR.

This card also has no balance transfer fee until 20th Sep 2022, and no annual fee. So it’s a great choice if you’re looking to transfer a balance from a personal loan.

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The Benefits and Drawbacks of Changing a Personal Loan to a Credit Card

There are both benefits and drawbacks to changing a personal loan to a credit card. Here are a few things to consider:

Get a lower interest rate(APR)

One of the benefits of a balance transfer personal loan to a credit card is that you may be able to get a lower interest rate. If you have a good credit score, you may be able to qualify for a balance transfer card with a 0% intro APR. This means you can save on interest and pay off your debt faster.

Debt payment flexibility

Another benefit of balance transferring a personal loan to a credit card is that it may give you more flexibility in how you make your payments. With a personal loan, you typically have to make fixed monthly payments.

But with a credit card, you can choose to pay more or less each month – as long as you make the minimum payment. This can be helpful if you have a tight month and can’t make your full payment.

Potential balance transfer fee

One of the drawbacks of balance transferring a personal loan to a credit card is that you may have to pay a balance transfer fee. This fee is typically around $0-$200, depending on the credit card issuer. So it’s important to compare balance transfer fees before you apply for a balance transfer credit card.

More Debt

Another potential drawback is that if you’re not careful, you could end up in more debt than before. This is because it’s easy to make new purchases with a credit card and then only make the minimum payment each month.

If you’re not disciplined, you could find yourself in a situation where you’re paying interest on both your balance transfer and your new purchases. So it’s important to be mindful of your spending when you have a balance transfer credit card.

Your Credit limit is blocked

Another thing to consider is that your credit limit may be blocked when you balance transfer a personal loan to a credit card. This is because your balance transfer will count towards your credit limit.

So if you have a $1000 balance transfer and a $1000 credit limit, your credit limit will be maxed out. This can make it difficult to make new purchases or balance transfers in the future.

Read More: Best Credit Card with the Longest Balance Transfer

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Bottom-line

When you’re considering balance transferring a personal loan to a credit card, it’s important to weigh the pros and cons. Consider your financial situation and whether a balance transfer is right for you.

If you’re disciplined with your spending and can pay off your balance transfer within the intro period, a balance transfer could be a great way to save on interest and pay off your debt faster.

But if you’re not careful, you could find yourself in more debt than before. So it’s important to consider all of the factors before making a decision.

Do you have a personal loan that you’re thinking of balance transfer to a credit card?

What are your thoughts? Let us know in the comments below.

Thanks for reading!

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