Can i use a credit card to pay off car finance?

cybercarrot

Howdy,

Is it possible to pay off a car finance loan with one of the long term 0% finance balance transfer cards there are available?
If so would it be classed as a balance transfer or a purchase? This would help in my choice of card.

I reckon I'd save a load in interest if i could do it this way and i'd just keep on movin the balance round to different cards if i didn't repay it all in the offer period.

Is this a good idea or am I heading for trouble??:cool:

stephane_2

The only way to do that would be to get a card which allow "super balance transfer" to transfer fund directly to your bank account, very few lenders offer that (MBNA/Virgin, Egg, Post Office Platinum) and a credit limit sufficient to cover loan is not guaranteed, you'll only be able to transfer 90/95% of available credit

Rob71

You might be able to just ring up and clear the balance - you might not. Depends on the lender.

If that didn't work, you could always do a money transfer from your card into your current account, and then use your debit card to clear the balance.

Money transfers usually require a 4% arrangement fee - look at Virgin or the AA cards for good deals (both are offered by MBNA).

cybercarrot

Ok,
I already have a barclaycard and virgin mastercard, the settlement figure is only 2500.
are you saying that i couldn't call it a balance transfer?
I only ask as you can put your overdraft onto a card as a balance transfer.

Rob71

cybercarrot wrote: »

Ok,
I already have a barclaycard and virgin mastercard, the settlement figure is only 2500.
are you saying that i couldn't call it a balance transfer?
I only ask as you can put your overdraft onto a card as a balance transfer.

Same difference: money transfer is a balance transfer (kinda)...

Instead of paying off the overdraft you just put the cash in your account and clear the 2500k off you finance with fund from your current a/c - it'll still be sitting on your c/card at the end of the day.

You can't just pay off the finance direct with the card... cos that'd be way to easy!

Once you've got the debt on plastic, you can shuffle it around to your hearts content - getting it on the plastic in the first place is the bit a lot of people don't know about.