Problems paying off loan with CC direct?

beatlestones

Hi there,

I've got about a year left on my one outstanding loan, but for the last year I've been saving on top of my repayments and now have enough to pay about 50% in cash, the only 50% I want to put on a new Halifax 0% credit card.

Ideally I don't want to do a transfer or super-transfer, so I called A&L (the loan creditor) and asked if I can use my debit card for some of the balance and my Mastercard CC to pay the rest, which they said was fine.

My question is are there any knock on effects of doing it this way, are transfer recommended solely because most creditors won't let you pay off the balance with anything other than debit card/cheque?

beatlestones

Update: Just called A&L again to get the settlement figure. Suprise suprise the customer service muppets mis-informed me.

You can only pay be debit or transfer as suspected.

anotherpaul_2

I suspect your CC would consider a loan payment to be a cash advance anyway and charge you the cash advance fee and exorbitant interest.

At best it's a grey area - you wouldn't want to do it that way even if they loan company would let you.

beatlestones

Thankfully I've just been accepted for a Abbey Zero card, and I already have an Egg Money account so I'll just scrap the Halifax card I was going to use (as it charges the 3% fee), then transfer the amount I need to EM, and then out into my current account for debit card payment.

Long winded, but doing this is going to save me £370ish in interest! :j