Lender reject payment of loan by credit card

vivki
vivki Posts: 39
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Hi Guys

I need to clear a very high interest loan, and have a credit card with a much lower rate of interest. I have tried to pay the loan with this card, but the lender (who offer consolidation loans) say that as a responsible lender they cannot accept payment of the loan by credit card. Can they legally enforce this? Is there any way around this?

Help please!

Comments

  • BorisThomson
    BorisThomson Posts: 1,721
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    They can, yes.

    You'll need to find a way to pay them with funds you actually have. Does the credit card offer a super balance transfer?
  • MallyGirl
    MallyGirl Posts: 6,563
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    Which is usually called a money transfer these days
    I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
    & Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
    All views are my own and not the official line of MoneySavingExpert.
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898
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    A credit card payment will cost the lender a % of the sum paid - this is the reason most will not allow it.
    Others have posted the way forward with money transfer cards
  • John-K_3
    John-K_3 Posts: 681 Forumite
    Another route is to switch all of your normal spending onto the card and then use the cash that you have saved to pay down the loan.
  • poggs
    poggs Posts: 134
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    get the curve card. It is a debit card which allows you to then cross charge to a linked credit card. Its primarily aimed at people using their cards oversees or who want to get rewards, but where the company dont accept the card they want to use, but it should allow you to do as you wish here.

    https://support.imaginecurve.com/hc/en-gb/articles/214162405-What-type-of-card-is-Curve-
  • jnm21
    jnm21 Posts: 853
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    poggs wrote: »
    get the curve card. It is a debit card which allows you to then cross charge to a linked credit card. Its primarily aimed at people using their cards oversees or who want to get rewards, but where the company dont accept the card they want to use, but it should allow you to do as you wish here.

    https://support.imaginecurve.com/hc/en-gb/articles/214162405-What-type-of-card-is-Curve-

    I was about to suggest that! The only caution is that their fees (which should be zero in this case) are not the easiest to find (I was looking for them & it took a while)! There is a foreign currency load (lower than normal, but enough at 1%), a £2 foreign currency ATM fee (for me too much) and a 2% fee on anything over £200 per month ATM if using CC to fund. Also a fair use policy.

    Still worth it for free with £5 for both referrer & referee - see the referral board.
    Certain OTT members have caused me to add this disclaimer: all advice given is free of charge & as such should be taken to be IIRC (as I don't spend hours researching all answers :eek: )!
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