Loan v credit card

broke_mum_of_three

I have 15 months left to pay on my car loan, which roughly works out about £3375. I was wondering if I was to take out a credit card with M&S which is 0% for 10 months on all your shopping, would I be able to pay the car loan off with the credit card each month instead, interest free, or do they class this as a balance transfer?

YorkshireBoy

You generally can't pay credit with credit, so the 'purchases' feature won't work for you.

Depending on...

The loan interest rate
The early settlement penalty
Whether you can pay off within the 10 months

...you may be able to use the M&S card's Sterling Travellers Cheque loophole.


However, you may find that a 0% SBT card such as MBNA, Virgin, or Egg Card (Visa) may be a better option, since they offer 13-16 months 0% for a BT fee of around 3%.

For further details click the stoozing link in the resource bar above.