Using my credit card to pay off mortgage?

john_mac83

I have about 6k left on my unsecured loan and have just applied for a halifax credit card with 0% on purchases for 10months. Just wondered if it is ok to use the CC to pay this off?

I will definitely be ablke to clear the CC within the 10months before the 0%rate ends, just wanted to check there are no extra charges for paying off a loan as it isnt a balance transfer.

thanks

jamalfatty

This wont be classed as a purchase so you wouldnt benefit from the 0%

john_mac83

What will it be classified as then? I have made an overpayment on one credit card before of £500 and that went through like a normal transaction. I have paid using a debit card too so i assumed it was just counted as the same

YorkshireBoy

If you have the 'All in one' card, then you could use this card's introductory balance transfer deal and the Egg Money card to settle the loan. The process is described here...

http://www.moneysavingexpert.com/cards/stooze-cash-credit-cards#trick

Whether it's the right thing to do is a different matter.

BTW, what's the mortgage (in your thread title) got to do with your "unsecured loan" question?

john_mac83

It a northern rock together mortgage which i need to clear before it comes to remortgaging. The interest is 5.79% fixed so thought if i could have got it on my CC with 0% rate would have been better. Obviously not that simple. Oh well

jamalfatty

john_mac83 wrote: »

What will it be classified as then?

A balance transfer, your not purchasing anything.

john_mac83

So when i make a payment on my debit card is that still a balance transfer?

YorkshireBoy

john_mac83 wrote: »

So when i make a payment on my debit card is that still a balance transfer?

No, that's a transfer of cash in this instance, and 'credit' isn't (usually*) involved.

You generally can't pay credit with credit, and you were very lucky that the mortgage provider accepted a credit card payment (although NR do seem to accept them more than other lenders from reports I've read).


* The mortgage lender won't know if you're using your overdraft facility or not.

neil9313

jamalfatty wrote: »

This wont be classed as a purchase so you wouldnt benefit from the 0%

NR collection department do accept a CC to make some mortgage payments, although you technically should be in arrears. It is counted as a purchase

john_mac83

Thanks everyone. When i used my CC last time i was actually in credit on it so maybe that had something to do with it. Although i have been accepted for the halifax card I dont think I will return the forms for it and just continue with the £500 a month overpayments to clear the debt.

I will stay be paying the 5.79% interest on the unsercured loan but it will be paid off within a year so shouldn't be too bad.

Seems less hassle