Paying off a personal loan with a credit card?

killzusall

I bought a car with Black Horse financing and got a rate of 13% APR, saw my bank manager (Lloyds TSB) who was saying that Black Horse is really for people with poor credit ratings and I should have got a personal loan, because the debt isn't secured against the car I can sell it if I want etc... so I took out a personal loan (12.1% APR) and paid off the settlement figure given to me by Black Horse - saved some money

Now a few months along the line I decided to cancel my Lloyds TSB Platinum credit card (13.9% APR) because I don't really use it, and they offered me a rate of 6.9% APR to stay, this is obviously a lot less than the personal loans rate, and my credit limit is high enough to cover the loan, am I allowed to pay off the Lloyds personal loan with my Lloyds mastercard?

I ask because when I worked as a sales person for currys and we did finance agreements there I was told to tell the customer they couldn't pay it off with credit cards, but that was a finance agreement secured against the goods purchased, does the same apply to unsecured personal loans?

BTW I'm not trying to be greedy and get a 0% balance transfer, cos I know Lloyds won't cover that, just want to get it on my credit card's APR.

Sorry if this has already been asked but I used the search facility and there are so many threads I couldn't find one to answer this question.

killzusall

Took the bull by the horns and just rang them, cheque, debit card or bank transfer only but not credit card.

Rafter

Why all this loyalty to LloydsTSB?

Anyway - you can't pay it direct.

The only way would be to do a balance transfer at 6.9% from your credit card to a 'mule' like an egg or an MBNA card.

You can then transfer from this mule to a current account.

You can then pay your loan off from your current account.

Problem is, with balance transfer fees this is a lot less attractive than it used to be.

How good is your credit history? how much are we talking about. There may be a way using an egg money card perhaps, but need some more detail.

R.

$17mma

killzusall wrote:

Took the bull by the horns and just rang them, cheque, debit card or bank transfer only but not credit card.

Do you have a mule card, like abbey (they charge to trasnfer to bank account) Egg or another because then you can transfer the money to one of these cards then transfer the money to your bank acct to pay off your loan.I done this on a card that was 0% although I didnt have a mule so I transfered it to my sisters card ( i can trust her) then she transfered it to my bank acct then i paid the loan! simple!

missile

Some credit cards offer you cheques, so that you spend money just like a currrent account. Or simply ask Lloyds for a cash transfer from credit card to your current account, however you may also incur cash transaction charge

millsee

missile wrote:

Some credit cards offer you cheques, so that you spend money just like a currrent account. Or simply ask Lloyds for a cash transfer from credit card to your current account, however you may also incur cash transaction charge

Bloody hell. NO!

Credit card cheques work just like cash advances. You pay in excess of 20% and usually a fee per cheque.

DON'T DO THIS. Missile: throw away your credit card cheques.

$17mma

millsee wrote:

Bloody hell. NO!

Credit card cheques work just like cash advances. You pay in excess of 20% and usually a fee per cheque.

DON'T DO THIS. Missile: throw away your credit card cheques.

Thank you! you are 100% right read below what Martin says about CC Cheques here.. do not touch tem with a barge pole!!!!http://blog.moneysavingexpert.com/

killzusall

Thanks and no don't have a mule card.

lynzpower

My OH is getting a barclaycard 0% no BTs fees to take on his cahoot loan, doesnt seem to be a problem for them