can I use a 0% purchases deal to pay off a loan?

Fi_1966

Basically I have recently been approved for a tesco 0% on purchases card. I was intending to use it for my weekly grocery shop etc to get the additional club card points and have as my emergency back up.

The amount of credit they have offered means I would be able to pay off a loan in full ,therefore not paying interest on the rest of the loan term IYSWIM.As well as keeping some credit in reserve for emergencies :T

Really just want to know if any one has experience of loan companies allowing the balance to be paid "purchased" in full with a credit card?
Oh and also if the cc company would class this type of transaction as a purchase?

TIA
Fi x

IWantToBeFree_2

No and No.

You would have to withdraw cash to settle the loan - thus incurring large fees and interest charges.

Fi_1966

Thanks Iwanttobefree, just an idea when I saw the amount of credit................seemed like a cunning plan at the time Glad I checked before going ahead.

Fi x

jonesMUFCforever

But you can use the money that would have been spent on shopping etc to overpay the loan thus reducing the term and interest charged.
(I assume you have a plan in hand to repay everything prior to the 0% finishing.)

Fi_1966

jonesMUFCforever wrote: »

But you can use the money that would have been spent on shopping etc to overpay the loan thus reducing the term and interest charged.
(I assume you have a plan in hand to repay everything prior to the 0% finishing.)

Will only be using the card for my regular grocery shop..........gets me extra club card points. This will be paid in full each month, only other reason for having a 0% interest on purchases is for big one off emergencies IYSWIM.

We already have a savings plan in place to ensure money towards our loans is stashed in ISAs for over payment next year.........all part of our DFWB plan, you will note from my signature that we have cleared over 21k in little over 18 months so yes in answer to your question I have a plan and so far been pretty good at sticking to it

I am aware how easy it is to get sucked into the 0% game and then not clear debts so a big thank you for pointing this out:T

Fi x

System

this is an idea I always had but not sure if it would work!

couldn't you deposit like £1000 into william hill or another online betting site, then just withdraw it to your bank/debit card?

[Deleted User]

That'd be a cash transaction. So fees and no interest free.