Paying off Loan using a Credit Card?

SniperNo2

Sorry if I have posted in the wrong place, but would appreciate any advice I can get.

I am currently paying off a loan which I took out when I was with the ex and trying as hard as I can to pay it off. However the interest keeps adding up and I stil have another 12 months left on this.

My loan is with Black Horse Finance and is £178 a month and due to be paid off by July 2012.

I have been seeing lots of info with regards to 0% credit cards for 14 - 18 months and was wondering whether I could transfer my loan to a credit card and continue paying monthly installments off the credit card thus gettig rid of having to pay interest and ideally paying my debt of quicker and getting my finances sorted out.

Any help is grately apprecitated.

Tixy

Most cards you cannot do this. The only ones that you can are those that allow super balance transfers/money transfers to put money into your current account and then pay off the loan from there - see this list here - http://www.stoozing.com/sbt.php

sam2009_2

you need to look into few things before apply for a credit card to pay off the loan.
* Is there a early repayment charge if you want to pay off the loan in full earlier?
* Do you have any credit cards? If so, can you ask them whether they have any 0% interst balance transfer offer on them?
* with credit cards balance transfer there is always going to be a transfering fee, usually 3-4%.
* Most credit cards will only let you do balance transfer to another credit card. Some will let you transfer to a current account but the transfer fee will be bit higher for that, about 1 - 2% above the usual rate.
* Find out how much credit limit the new credit card will offer you before you accepting the card. Some can be as low as £500 credit limit for new customers. It also depends on your credit rating too.
* Check what the minimum pay would be each month for the credit card.

I am actually trying to do the opposite. My 0% balance transfer coming to an end and I'm looking to get a long term loan.

SniperNo2

Thanks for all your advice, eeeeek... just got a copy of my loan agreement through the post as I had misplaced my original. Im paying 25.5% on my loan which makes me sad. Any ideas on the best thing for me to sort out my finances apart from winning with Euro tonight. Sorry for all the questions but I am so greatful for any advice.

Tixy

Right so at the moment you have 13 payments at 178 left? so a total of £2314 to pay.
First phone up the loan company and ask for a settlement figure. Thats the starting point and you can then start to look if you might be able to pay this off cheaper.

YorkshireBoy

SniperNo2 wrote: »

Any ideas on the best thing for me to sort out my finances apart from winning with Euro tonight. Sorry for all the questions but I am so greatful for any advice.

Did you read post #2, and the link contained within?

Unless you provide all your personal info (income, debts, financial associations, etc, etc) then there's nothing else to be said.

jamesd

Any of the MBNA credit cards like Virgin will let you balance transfer from a bank account to the credit card then you can pay off the loan with the money in the bank account. See the stoozing link and look at the balance transfer card table for those offering a SBT.

Or you could apply for a 0% for purchases card and put as much as possible of your day to day spending on the card. Use the money you would be spending to make extra payments on the loan until it's cleared.