Looking to pay off loan with credit card

kalderadrums

Hi all,
Was wondering if this was a valid option?
The Tesco card is currently 0% on purchases for 12 months and would cover the cost of my loan, but would paying a loan off with a credit card count as a balance transfer or not?
This may change things.
Debt is 5.5k and may not be possible on a BT?

Help?

Thanks.

ironlady2022

It is a special type of balance transfer, only some credit cards offer this facility and you are looking at abou a 4% initial fee upfront.

kalderadrums

Ah do u have any details on this?

ironlady2022

http://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs
It's called a super balance transfer! Money gets paid into account and then it's your responsibility to allocate payments! Good luck!

kalderadrums

I've spoken with my loan company and they will accept a credit card payment, so i don;t need to transfer the money to my bank account. Do you think I will still need to get the super balance transfer, or will it class as just a payment or purchase against the credit card?

ironlady2022

I'm not sure about this. It's not exactly a purchase, to be on the safe side ring up card company of the one you're interested in and enquire otherwise just have money transferred to account at least you know exactly what you will be charged.

YorkshireBoy

mayling03 wrote: »

...to be on the safe side ring up card company of the one you're interested in and enquire

But they may not know which merchant category code (MCC) the loan company will use for the transaction.

If they use the 'wrong' one it could go down as a cash advance.

OP, the Egg Card will BT a loan or (even a ficticious ) overdraft...so you can choose whether to BT the debt directly or indirectly. It has a 3% fee payable for 14 months 0%.

izools

It would be classed as a purchase.

As Tesco do 13 months free on purchases you still wouldn't pay interest for over a year.

Good luck

ironlady2022

I don't think it is a purhase as it is money paying off money