I have an MBNA credit card which I pay off every month. I've had a letter from them informing me that I can avail of a transfer interest rate of 3.9 % till October. I can also write a cheque drawn on the credit card for the same rate, up to 90% of my credit limit....(which is 20000)
I also have a credit union loan of 30000 on which I am paying 7.5 % over 5 years. My question is, if I were to write a credit card cheque for 5000 (for example) and pay this off my credit union loan would there be any advantage to me in doing this? I'm assuming that I could pay back the 5000 plus 3.9% in October to the credit card by 'redrawing down' the amount from the credit union.