Request for sticky- Paying off a loan with a Credit Card

thenudeone

This question seems to be asked at least every day - Can I pay off a loan or mortgage with a Credit Card?

Can this be made a sticky:

My suggested answer would be:

-It depends on whether your loan or mortgage provider accepts them. (They are under no obligation to do so)

-Check whether there will be a charge for accepting payment by credit card.

-Check whether there is any early repayment penalty.

-Check carefully how your loan provider will process the transaction.
If it will be treated as a cash advance, this will incur interest on your credit card from day 1 (there is no interest free period even if the statement is paid in full). Also Cash advances are reported to Credit Reference Agencies and can be interpreted as a sign of financial weakness.
If it is treated as a purchase, it should still be eligible for any 0% offer on purchases, cashback or points, and the usual interest free period if paid in full.
-If it is treated as a balance transfer (unlikely unless it is a card-based account), it should still be eligible for any 0% offer on balance transfers, but there will normally be a charge (3-4% is the norm). If there is no offer, interest will be charged from day 1.

A mortgage company might accept payment by card, but the terms will almost certainly specify payment by direct debit or standing order, and asking to pay by card will set alarm bells ringing regarding your ability to pay.

Comments please?

[Deleted User]

mse is covered in stickys already would be my comment

thenudeone

Fair point but how else can we stop the same question being asked again and again? for example another one today: https://forums.moneysavingexpert.com/discussion/3482295

shiny76

thenudeone wrote: »

Fair point but how else can we stop the same question being asked again and again? for example another one today: https://forums.moneysavingexpert.com/discussion/3482295

What makes you think that a poster that doesn't use the search facility before posting a thread would take any notice of the stickies???

In my experience stickies are only useful as they are easy to find, to refer someone to. It won't stop the same question being asked repeatedly!

Gordon_Hose

It's a forum. Questions are repeated. It's a fact of life. Get over it.