Paying off car loan on credit card

holly83

The baloon payment on my BMW finance is up in June and so I rang BMW to find out how much they would charge if I paid it off on a 0% credit card. They told me that they do not accept payment of finance on a credit card! Its their policy I am told!! My credit is good I am just trying to save money by using the 0% deals that are about. Lloyds has told me that I can have the cash off my credit card which I know is an expensive way to borrow. Just wondering if anyone knew if there was any penalty for taking the cash from Lloyds from their credit card and then balance transferring that onto a 0% apart from the usual transfer fee? I figure if I do it quickly the interest on the cash wouldn't be too bad.

Tixy

The usual way to get around this type of situation would be to try to get a card that allows super balance transfers. That is a transfer from your credit card to your bank account for a fixed fee, and then use that to pay off the loan.

That should work out cheaper than trying to pay cash advance fees to take the money from lloyds and then BT fees to move from Lloyds to another card. Its likely the cash advance fees that would sting you more than the interest.

Only some cards allow SBTs, principally MBNA backed cards. Though obviously this plan would be dependant on you getting such a card with a 0% deal with a high enough credit limit - list of SBT cards here - http://www.stoozing.com/sbt.php

holly83

Thanks for that, really helpful, I forgot about the advance fee but will check out a couple of the credit cards on the site you listed.