Use credit card to pay off loan?

empage

Hi guys,

I just applied for and got an RBS credit card which has 17 months interest free balance transfer on it. They have given me a limit of £8000 which waaaay more than I need for my current credit card balance transfer. My balance on my santander credit card (0% coming to an end) is just under £1600.

However I have an alliance and leister loan which I am still to pay off and its balance is at £5000 (13.4% apr). (The settlement amount would be less).

Is there any way of transfering money to this loan from my rbs credit card (so that it will be interest free) so that I can pay the loan? Would I just give the loan account number or would this not work?

I have already worked out that I can pay off both the credit card and the loan amounts by Feb next year at the latest (the target is actually Nov), so well within the interest free time...

Thanks!

Any

Paying off loam does not work the same way as bslance transfer..the chances are that the bank will not accept the card as a payment, you will have to transfer money from the bank account..
And as far as I know RBS does not allow you to transfer cash into ur account nder the same 0% as the BT.

Liam002

You probably can do that but be aware of the hidden charges. There can be a transfer fee of about 3%. Then you have to pay on time, otherwise all your benefits might be cancelled. Just make sure you read all the Terms and Conditions as well as the fees associated with what you're looking to do. If I were you, I would just speak to someone at RBS.

empage

Thanks guys, I will have another think about it and then give RBS and Alliance and Leiscter a call to see what they say. Even with 3% charge it would be better than the current interest rate on my loan.

ironlady2022

You need to see if they will allow a 'super balance transfer' at 0% basically means, money from credit cards gets transferred to current account then your responsibility to allocate payments-in this case to your loan. And yes even with the higher fee, you will save interest on the 5k loan and pay it off sooner hopefully!

jolester

I was also wondering the same.

I've just taken a 0% 17 month balance transfer CC with Barclays, and have an outstanding loan with LTSB and wondered if I could use this card to pay off the loan.

I believe I have 3 months 0% on purchases and wondered if it would fall under this banner?

However, if it did, would I then start paying interest after 3 months? If I would then I'd be better off leaving it where it is.

Or, another thought, could I pay off the loan with my LTSB credit card then transfer that balance to my Barclaycard CC??

Sorry I've put so many questions and it's not even my thread

Any

jolester wrote: »

I was also wondering the same.

I've just taken a 0% 17 month balance transfer CC with Barclays, and have an outstanding loan with LTSB and wondered if I could use this card to pay off the loan.

I believe I have 3 months 0% on purchases and wondered if it would fall under this banner?

Or, another thought, could I pay off the loan with my LTSB credit card then transfer that balance to my Barclaycard CC??

Sorry I've put so many questions and it's not even my thread

Firstly, you need to find out whether LTSB will accept card as a payment - my guess is no. But it is worth asking.

jolester

I spoke with 2 people in LTSB Wednesday who gave me conflicting information, then spoke with 3 people on the phone at LTSB Wednesday night who gave me varying degrees of information and then had to deal with FOUR people in the branch today - giving varying and somewhat conflicting information - but here is the bit that will probably intetest you now I've got my rant over!

Withdrew £3800 off my LTSB CC and had it paid into my LTSB current account, which then paid off my LTSB loan - (cost about £115 quid) then I transferred this £3800 (+ interest) plus my existing CC balance to my 0% 17 mth Barclaycard.

According to four people at LTSB no-one has ever requested to do this before?? I work out financially better off, and get everything paid off in 17 months rather than 38 for my loan, and howevermany centuries my credit card would have taken me !

Hope you get sorted too:cool: