NEW: Got questions about energy? Put them to Gary and Andrew from MSE's Utilities team during our energy-themed 'Ask An Expert' event. Check back here from Tuesday 9 August, 12pm

can i pay off a new loan with a 0%credit card

Having just taken out a loan with zopa of £5000 over 5 years i was wondering what would be the best way to pay off so i dont pay the intrest.for example apply for a 0% credit card to pay off loan,can this be done?

Replies

  • TixyTixy Forumite
    31.5K Posts
    No you can't pay off a loan with a credit card.

    You could possibly consider a 0% super transfer card, which transfers money into your current account (which you could then use to pay off the loan).
    List of such cards here http://www.stoozing.com/sbt.php

    But there will be balance transfer fees to pay on the transfer and the longest deals on super transfer cards only last 20 months. Can you pay it off in that time? if not then you could end up with it stuck at a high apr on the card, or at best would need to pay more balance transfer fees.

    That said if you've just taken out new credit, that could make it harder to get a card, and of course you'd need to hope you were accepted with a high enough credit limit.

    What APR is the zopa loan? You might find the cheapest option is to carry on with that loan, overpaying if and when you can afford it.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • jamesdjamesd Forumite
    25.8K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    As well as the balance transfer options you could seek a credit card with a long 0% for purchases deal and spend on that. Then make overpayments on the loan of the amount that you spend on the card. This will avoid balance transfer fees.

    Declaration of interest: I currently have some lending offers at Zopa that are unlikely to be matched but not yet canceled. I used to have a loan via Zopa, now cleared.
  • How about withdrawing cash out of your credit card then pay your loan, will it work?
  • jamesdjamesd Forumite
    25.8K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    That will be more expensive than a loan on most cards. It'll be charged at cash advance interest rates from the day it's taken out.

    The exception is withdrawing an in-credit balance to a current account.
  • simple way round this.......
    1) get a 0% purchase card (tesco, you also earn points)
    2) via ebay purchase precious metals to the value of 5k using the card. Purchased in bulk you can get silver at £27 an oz. U will also get cash back in the form of clubcard points
    3) resell on ebay in smaller lots, you can make £1-4 per oz.
    4) Pay off loan with sale proceeds, you would have made some money on your initial purchase and also earnt clubcard vouchers.

    Good luck
    Mortgage overpayment
    01/05/11 - 31/12/2011
    £5000/£7000
    End of 2012 target
    £8400
This discussion has been closed.
Latest MSE News and Guides

Homes, hornets & high heels

This week's MSE Forum highlights

MSE Forum

Kids eat for 'free' or £1 this summer

Little ones can enjoy hot meals for less

MSE Deals