Paying loan of with credit card

Anoushka_2

Hi everyone,

It might be a silly question (sorry, I am quite new to all these money savings things!), but is it possible to pay off a loan with a credit card (that is to reduce the interest).
I have a fixed rate loan (at 6.5%) and have 39 payments left to make (at £245 per month).
I have recently applied for a 2 credit cards for the first time (currently I only have debit cards): one is the Amazon card (just for the £15 voucher) and the other one is the Morgan Stanley one (just for cashback on purchases which I will pay in full each month).
Would there be any way I could clear my loan by shifting it to a card which would give me a lower interest?
Any suggestion welcome
Thank, Anoushka

$17mma

Yes you can and that is exactly what I done.

I beleive one of your new cards should be offering you a 0% bt deal. You will need either a mint card or Egg card to transfer the balance from the credit card to either mint or egg then to your bank account to make the payment onto your loan.

Not all cards allow a transfer from cc to bank account which is why you need a MINT or EGG to do it. They call it Super Balance Transfer.

Bargain_Annie

Just make sure you don't have an early repayment charge on your loan - you may find you don't save anything by switching if that is the case...

$17mma

And see if you can get anything back from the PPI if you have any before you end the loan.

YorkshireBoy

To clear your loan you're probably going to need over £9K. That's a lot of money for one card.

I don't know your overall current financial situation, but you have a £9,555 debt on the loan + the Amazon credit limit + the MS credit limit showing on your credit file. You may also have a mortgage?

If you apply for another credit card, the provider will search your credit file and see your current indebtedness. This will affect any credit limit offered at 0%.

I have a potential suggestion, but first some questions...

1. Is the Amazon card 0% on BT's?
2. What's the Amazon credit limit?
3. What's the Amazon balance at the moment, and could you clear it tomorrow?
4. Is the MS card 0% on BT's?
5. What's the MS credit limit?
6. What's the MS balance at the moment, and could you clear it tomorrow?
7. Other than these 2 cards, have you made any other applications for credit recently?

Anoushka_2

You're right Yorkshireboy. I will need about £9500 and I know this is a lot.
Ok to answer your questions:
1. Yes 0% on BT for 9 months (with a 2% fee though)
2. Limit £7500
3. Balance is nil as I have just applied for the card
4. MG is 5.9% on the life of balance
5. I don't know the limit, I have only just applied
6. Balance is nil
7. I have not made any other application for credit recently. I have a mortgage also.
It might be better for me to look at clearing my loan in say 12 months or so just to get the balance lower than it is now. The amazon card, I am not really planning to keep as I just want the freebee. The MS card is to get me some cashback and I will always pay it in full.