Car Loan

Geordie_Girl_4

I have a £2,100 car loan left to pay over the next two years. I am looking to get rid of it the cheapest way. If I pay it on my credit card I get charged 2% and then another 2% from Toyota. Capital one were offering 15 month interest free on balance transfers, but I don't know how to transfer this loan to a card the cheapest way.

Any ideas welcome.

Thanks

Bokken_2

Welcome to MSE
You do need to do a bit of reading first of Martins article on Credit cards and don't move your cards/money /loan any where until you understand what your going to do and how you are going to do it otherwise you could end up with extra charges and fees that with a little research can be avoided.
you have several options.
1/Get another loan at a lower interest rate and pay that off.
2/move the loan to a 0% credit card where you will pay no interest while your paying the £2100 off.
3/Leave it where it is,and get a Sainsbury's card (or similar)for piurchases only and spend your day to day shopping on the card and send your wages to pay off the loan,unfortunately the Debt will need to be repaid on the Sainbury's card at the end of the 0% period.
Martins articles explain these options in more detail with examples so have a look at the links at the top and the left.
good luck

Geordie_Girl_4

Thanks for your info.

Do you think extending my overdraft with the bank and then getting a cash advance from a credit card would be an answer ? Only incurring one lot of charges from the credit card company.

Bokken_2

Geordie_Girl wrote:

Thanks for your info.

Do you think extending my overdraft with the bank and then getting a cash advance from a credit card would be an answer ? Only incurring one lot of charges from the credit card company.

Use the overdraft you have as a tool to assist you with what you want to do don't use it as a loan as it will then remain on your account as a debt and then at some point you will have to find the money to clear this debt.

NO definately not.
A cash advance from a credit card incurs a heavy interest fee(a charge)this is a problem because the way the credit companies allocate payments to your card .The debt will remain on your card for years at a higher interest rate with your payments are going towards a lower rate purchase on your card.
You need to read up on this .
To get cash into your account from a credit card you will need a Super Balance Transfer.read up on this.
Don't rush into this, set up the correct credit card and perhaps a new online current account to manage your new "Money".
It is better to pay a few small interest charges than make a whooping mistake and get charge interest over several years.
Good planning now will save you a lot of hassle and money.
Read up on Martins articles that is what they are there for.
good luck

Geordie_Girl_4

Thanks

I've an idea - If I pay it off on my John Lewis account earing points but paying 2% to Toyota for paying on a credit card then transferring to Capital One account 15 months interest free and paying 2% balance transfer. I will only be saving £120 but it's £120 in my pocket and I get to pay the loan of quicker if I set up a standing order.

Geordie_Girl_4

Thanks

I've an idea - If I pay it off on my John Lewis account earing points but paying 2% to Toyota for paying on a credit card then transferring to Capital One account 15 months interest free and paying 2% balance transfer. I will only be saving £120 but it's £120 in my pocket and I get to pay the loan off quicker if I set up a standing order.

Thanks again for your suggestions.