Should I pay off my car loan with a 0% interest credit card?

kellyam

Hello, wondering if I could get some opinions/advice

I borrowed £6190 at 12.7% APR in September 2010 on a 48 month term. I am hoping to pay this off very quickly so that I no longer owe any money.

I have £1500 savings and the settlement fee is £3900 so I need £2400. So I was thinking of getting an 0% interest credit card for 18 months and paying it off really quickly on that, saving myself around £400-£500 in interest and getting rid of the debt. Does this sound like a good idea? Also would they allow me to pay off a car loan with a credit card? The only other problem is getting the credit card company to give me £3900 credit, even though I would pay £1500 off straight away or can I split the cost when settling with the car loan company?

Thanks in advance

Kelly

[Deleted User]

I'd say you can split the payments as long as they are made by the date they give. They often say if you pay X by X then the account will be settled, that's when you ask for a settlement figure.

You need to consider if the card will charge you for a cash advance fee.

If all works it's fine, but you must ensure you keep to the credit card payments strictly.

Check that your loan provider will take the relevant card payment

Tixy

Vast majority of cards would not allow you to pay off the finance from the card.

A few cards offer super balance transfer (mainly those issued by the MBNA stable and the post office) will allow you to do a 0% transfer to your bank account - which you can then use to pay off anything. But they are subject to a balance transfer fee (anything from 3-5%).

[Deleted User]

Or you could pay for things with the card and use the cash to pay the loan, I don't know if you spend big money...