Can I clear Overdraft or Car finance with a Credit Card?

mazy_m

I've now been accepted a CC with my bank for £2650 on a 16.9% APR interest free for 13months purchases and B Ts.....

So my questions are can I pay off my Overdraft or car finance with this?

Would paying off my overdraft be classed as a Balance Transfer?

Would paying off my car finance be classed as a purchase?


The overdraft is £2000 and is with the same bank!!

The car finance is higher than the credit limit but I was planning on paying off some of my overdraft in the next couple of months so I should be able to stretch to whatever is is when I get the settlement figure!!(fingers crossed!!)

If I can do either of these which would anyone suggest and why?

I'd be able to pay off the balance on the credit card in the next 13 months also so I shouldn't end up paying any interest on this!!

But I understand if I did do the OD as a BT then there's a fee.

Cheers

Maz

Tixy

Only a few cards allow you to transfer money to a current account which you can then use to clear an overdraft or loans. These cards generally have slightly higher fees for money transfers (aka super balance transfers) than a normal credit card transfer.
List of such cards here - http://www.stoozing.com/sbt.php

If your new card is not on that list you cannot do it. Some other card providers occasionally offer money transfers to long standing customers but these are special offers not the norm.

mrs_B_5

I looked into this with HSBC and, apparently, clearing your overdraft with your credit card classes as a cash advance to carries a mahooosive interest rate

mazy_m

Thanks for the link it's not on there..booo!!....oh well I guess I could just use the CC to buy things I need on it for the 13 months....and pay off more towards the Overdraft as it's a reasonably high APR around 17% or 18%....

Does anyone know about the car finance one? I read my previous settlement thing and this would also charge around 3% of the price and i'm guessing it means I can do it....and i'll save a couple of hundred on interest even with paying the 3% fee.

Cheers again

Maz

Tixy

You might well find that even if the finance company do let you pay it off with a credit card that it will be charged as a cash advance by your credit card company - if it is it won't be at your 0% rate but the full cash advance rate.

Using the card to slow stooze your overdraft through normal spending can be a good idea. Or maybe you could try applying for a card that is on the list above? (depending on how many recent applications you have made).

mazy_m

amy_forster wrote: »

I looked into this with HSBC and, apparently, clearing your overdraft with your credit card classes as a cash advance to carries a mahooosive interest rate

Grr it's so annoying!!!! We try to be sensible but alas!!!ha ha oh well!!

Thanks for replying it wouldn't let me thank you on the bottom for some reason!

Maz

mazy_m

Tixy wrote: »

You might well find that even if the finance company do let you pay it off with a credit card that it will be charged as a cash advance by your credit card company - if it is it won't be at your 0% rate but the full cash advance rate.

Using the card to slow stooze your overdraft through normal spending can be a good idea. Or maybe you could try applying for a card that is on the list above? (depending on how many recent applications you have made).

Hey there,

Yes that thought crossed my mind...if it was classed as a cash advance there's no point doing it at all as these are huge APR rates....grrrr..ohh well... yeah I think perhaps do the paying for everything I can on the 0% int credit card and then pay off the Overdraft with it.... For the car agreement even if I could have paid it off with the card without incurring the cash advance fee I would have only saved around £150 on interest after paying the 3% fee but that would have meant I would have really had to struggle over the next couple of months (have a lot on including a wedding so really need to have extra there just in case!!)

I know £150 is a lot of money but I don't think it's worth not being able to live and have a bit of fun during my time off work!! lol!!

Maz

bethyblue612

I paid off my car loan recently on a credit card, it was the balloon payment at the end. I checked with them before I did it that it would go through as a retail purchase, and it went through ok. It was Ford Finance.