how to pay off loan with credit card?

anskills

hi,

i currently have a £3k loan taken out over a year ago with northern rock, it still has £1200 to pay off over the next year and a bit.

i now have a bit more cash spare so i would like to pay £500 off with cash then use a 0% credit card to pay the remaining £700 off, which i would then pay off in full as quickly as possible.

i have checked with northern rock and they will allow me to pay it off with no early repayment fee's.

here is where im a bit confused. what is the best way to pay this loan off? i have a very good credit rating and am positive i would be accepted for the majority of cards. i have heard you cant pay loans off with credit cards though, is this correct? would i be best to get a 0% balance transfer card or 0% on purchases or what?

thanks

anskills

after a bit more reading on here, would a virgin CC with 0% on super balance transfers be my best option? that way i can transfer say £700 to my current account then transfer that £700 to pay off my loan in full. then just set up a direct debit for £100 a month to pay off the virgin cc in under the 9 month introductory period?

i am aware that i could probably stretch it out and pay minimum £5 payment every month but im one of those folk who would just rather get it out of the way so i can start saving up again for a new car

smartsaver

Hi

Yes you could use Virgin or any MBNA card with an SBT straight into the bank. You could also use EGG who have a facilty to pay off the loan direct from your credit card.

anskills

so who offer the longest period of 0% super balance transfers at the moment? is there anywhere i can compare the periods offered or cons such as transfer fee's?

cheers

anskills

smartsaver wrote:

Hi

Yes you could use Virgin or any MBNA card with an SBT straight into the bank. You could also use EGG who have a facilty to pay off the loan direct from your credit card.

so will i still get 0% on the BT as effetively im balance transfering my cash from them to my bank account and not from another card to their card. im slightly confused as to whether that still is charged at 0% or its basically looked upon as a purchase and charged at a high rate of APR

Reaper

You will get it at 0% as long as you use the right card (such as those mentioned) and you make sure you ask for a balance transfer not a cash advance.

Bear in mind 0% deals generally last 6 - 9 months. If you can't pay off the debt in this time you will need to transfer it on to another 0% card before it expires. You shouldn't have a problem doing that but as you should always plan for the worst consider what you would do if you can't get another one.

ukric

I've done this to pay off my loan, you just have to be disciplined enough to make sure u pay off the credit card or continually rotat the balance on ccards to make sure it's always @ 0%