Early settlement advice please...

YeovilFC

Hey guys and girls

I took out a loan for my car a year ago with the Funding Coporation (poor company, yes I know, but it was the only company that accepted me! and at 46.9% interest!!).

Since then my credit rating has improved and I've managed to get a credit card that is interest free on purchases for a year, so I'm going to pay off the balance of my loan using this.

Anyway, I rang them up for my final settlement figure today, and I was just wondering... is this figure negotiable/barter-able or is this the set figure I will have to pay?

Cheers...

immoral_angeluk

Are you currently in arrears? If not it's highly unlikely they'll offer you a reduced settlement as far as they're concerned at the mo you're good for the whole balance..

YeovilFC

immoral_angeluk wrote: »

Are you currently in arrears? If not it's highly unlikely they'll offer you a reduced settlement as far as they're concerned at the mo you're good for the whole balance..

Nope I've never missed a payment...... that's fine I didn't think there was much chance they would but thought it was worth checking anyway.
By paying it off with my credit card I'll be saving about a grand off of the four grand I would end up paying overall if I was to carry on with the loan so it's well worth doing anyway.
Thanks for your help.

stephane_2

YeovilFC wrote: »

Nope I've never missed a payment...... that's fine I didn't think there was much chance they would but thought it was worth checking anyway.
By paying it off with my credit card I'll be saving about a grand off of the four grand I would end up paying overall if I was to carry on with the loan so it's well worth doing anyway.
Thanks for your help.

Have you actually checked that they will accept a credit card for the payment of the loan??

YeovilFC

stephane wrote: »

Have you actually checked that they will accept a credit card for the payment of the loan??

Thanks for your message.

I'm not sure, is the answer to that. I will check with them tomorrow.

Also, if I can pay off the loan with my credit card, will that count as a 'purchase' thus being interest free for the year?

stephane_2

It should, but make sure you tell your bank that you're about to make a substantial purchase.