credit card to pay of loan?

Euphoria1z

Hi

been wondering this for a while now, i have a personal loan of 3k, can i somehow use my credit card to withdraw 3k and pay of this loan completely, then do a 0% balance transfer so im not paying any interest on the 3k on my credit card and pay it off within the year?

is this possibe? would i have to withdraw 3k cash on my credit card then deposit in my bank account and pay off bank loan? or can i use my credit card to pay of the 3k bank loan directly (will they allow this?)

Hope it made sense. Thanks

bengalknights

The only cards that allow you to do a credit to bank transfer are those issued by MBNA, all other cars you would have to use the old egg mule card method or write yourself a cheque if they have those options.

Tixy

As well as MBNA issued cards you can use post office cards or the M&S card to put funds in your current account (the M&S is via sterling travellers cheques and works out cheaper as the fees work out lower).

What credit card do you currently have? If not one of the above then you could try applying for a new % card from one of those issuers.

Tixy

jcourtenay wrote: »

I imagine this would be a bad idea due to the fact that most credit cards have much higher interest rates than most loans.

The OP is talking about a 0% card and says they can pay it off within the 0% period. Its unlikely that the loan will have a lower APR than this method - as the only cost they would pay is the BT fee (which is from 1.5% to 4% depending on the card used).

pugzy

Have a look at this thread of mine from a few months back on here

All about Super Balance Transfers where I took out a card with MBNA and did a Money Transfer at 0% APR into my bank account, and then shifted those funds towards my loan...

Hope that helps!

Euphoria1z

Thanks all. i have a barclays, capitol1, halifax and Alliance and Leicester MBNA. will try and do what pugzys thread talks about.

beanys

just check theres no early payment penalty , also you never miss not one single payment on the credit card or they will cancel the 0% and charge there rate about 17% or more , apart from that its a good way to sane money, also if you applie for a new card from a cash back site you can get free money as well as 0%

thenudeone

Tixy wrote: »

The OP is talking about a 0% card and says they can pay it off within the 0% period. Its unlikely that the loan will have a lower APR than this method - as the only cost they would pay is the BT fee (which is from 1.5% to 4% depending on the card used).

There would probably be two fees - one on the card used to withdraw cash and another on the one the balance is transferred to. Plus interest on a daily basis between the cash withdrawal and the transfer.

Also - cash withdrawals are reported to CRAs and will affect your ability to get further credit.

Tixy

thenudeone wrote: »

There would probably be two fees - one on the card used to withdraw cash and another on the one the balance is transferred to. Plus interest on a daily basis between the cash withdrawal and the transfer.

Also - cash withdrawals are reported to CRAs and will affect your ability to get further credit.

Not if they use a super transfer card - that would be just one card and one fee. And it isn't a cash withdrawal and so isn't reported as such to the CRAs.