payday loan - can i pay with a credit card?

moneyspender1981

I have taken an payday loan, as required it in an emergency, if I pay it back within 7 days I can i can get it interest free.

I just wondered, I have a 0% credit card... can you pay a payday loan with a credit card or does it have to be a debit card?

Browntoa

got the feeling it would be classed as a cash advance and subject to a fee

withabix

I don't think you are actually allowed to use a credit card to make a loan payment, but I could be wrong.

CHR15

What rationale did you use when you were opting for a Payday Loan over using your 0% credit card?

JuicyJesus

By all means try, but it could well be classified as a cash advance, meaning it won't be at 0%. The payday loan company are the best people to ask about whether they'll accept one; the credit card company as to whether it'll be treated as an advance.

It's worth pointing out however that even at the typically punitive cash advance rates, it'd still probably be cheaper than the payday loan.

Basically - do some research.

moneyspender1981

JuicyJesus wrote: »

By all means try, but it could well be classified as a cash advance, meaning it won't be at 0%. The payday loan company are the best people to ask about whether they'll accept one; the credit card company as to whether it'll be treated as an advance.

It's worth pointing out however that even at the typically punitive cash advance rates, it'd still probably be cheaper than the payday loan.

Basically - do some research.

We had a family emergency and needed money straight away.... the credit card was already in the post... but needed it now... plus if you pay the loan off within 14 days its interest free.

loveandlight

posted by moneyspender1981
plus if you pay the loan off within 14 days its interest free.

How are they making their money from you then and which company is it as I thought all payday loan companies charged?

Naf

I paid off mine at The Money Shop with my credit card, just shows as a normal transaction so far as I know... will be back after double-checking my statement... not certain if it'll count as a 'purchase' for your 0%, certainly won't count as a balance transfer if that's the 0% you have...

Naf

Nope, just shows as a payment just like a purchase. I probably ought to stress that The Money Shop are listed here as a 'Jewellery and Watch Merchant', so it doesn't make the difference. Maybe it could with a company who deal solely in payday loans...

pvt

It's a surprise if they will accept it as a sale becasue the PDL sharks will then have to pay credit card commission of about 3% to the CC company.

As these PDL companies are working on such small margins of as little as 4,000% AER, they may be reluctant to eat into that small return....

Naf

JuicyJesus wrote: »

By all means try, but it could well be classified as a cash advance, meaning it won't be at 0%. The payday loan company are the best people to ask about whether they'll accept one; the credit card company as to whether it'll be treated as an advance.

It's worth pointing out however that even at the typically punitive cash advance rates, it'd still probably be cheaper than the payday loan.

Basically - do some research.

I have just a £50 cash limit on my credit card, so if I HAVE to get some off it, money shop is the only option, then pay off with the CC. They accepted the payment no problem, didn't apply any additional charges at either end so now it's just part of my balance accruing roughly £15 per month as opposed to £80, plus I can pay back in increments other than round £100s at a time...