Transaction type query?

madison-nyc

Morning all ,

Wasn't sure how to title this one really. I currently have an old natwest loan which is handled by FCM - first credit management. I pay them monthly and the balance of the actually loan is just under £7500 , they have offered me a settlement figure of £3250 if I can pay it in full.

I don't have a lump sum available but do have an m&s credit card with a £4k limit and 0% on PURCHASES for 15 months. I'm thinking of paying them off with the credit card , I'll clear a fair amount in the 15 months then could always balance transfer whats left to another interest free card if need be.

My only concern is if I pay FCM over the phone with my credit card will it show as a purchase or will it go as a cash advance? It needs to show as a purchase in order for me to get the 0% interest period.

Any help appreciated :-)

YorkshireBoy

First question is can you pay them by credit card? Have you asked them?

If not, then your only option with that card is to buy Sterling travellers cheques with it from M&S bureax de change (1% fee but they qualify as a purchase so 0% interest), encash them at your bank, and settle the loan with the cash once cleared.

How will they mark your credit file?..."partially settled"? If so, then have you thought about the damage that will do?

madison-nyc

Thank you for your reply :
I'm pretty sure I can pay by credit card but would have to double check , i'm sure when she offered me the settlement figure I mentioned a credit card and she didn't say anything then.

I already have two defaults from natwest for the origianal loan and overdraft that was on , my then , current account with them. When I spoke to FCM on the phone she said if I could pay the £3250 , it would fully settle and close the account with both them and natwest so I presume it would show as settled if I'm paying what they're asking , but again I would have to double check as I didn't realise they could mark as 'partially settled'.

So if they would allow me to pay by credit card over then phone it would show as a purchase?

Thanks again , Deb

madison-nyc

bumping up for a bit more help please