Can I pay off a HSBC personal loan with a credit card?

*Vikki*

Im thinking once I have the credit card down to £2000, paying it off with a 0% credit card. Do they accept payments by a credit card though?

steve1980

It's normally by bank transfer but the best way to find out is to ask HSBC.

bargainbetty

Also check your early repayment penalties - once you allow 3% for a balance transfer, you might find it's not actually much cheaper. Personal loans often have front loaded interest, so you won't save bundles by paying early.

Talk to your lender or read the terms and conditions.

TeamNicholson

No sorry you cant. They wont allow you to pay lending off with lending.

CLAPTON

bargainbetty wrote: »

Also check your early repayment penalties - once you allow 3% for a balance transfer, you might find it's not actually much cheaper. Personal loans often have front loaded interest, so you won't save bundles by paying early.

Talk to your lender or read the terms and conditions.

front loading interest on unsecure personal loans is against the law so I would be surprised in HSBC did this.

steve1980

CLAPTON wrote: »

front loading interest on unsecure personal loans is against the law so I would be surprised in HSBC did this.

Do you have written confirmation of this? If so where is it?

jason1231972

bargainbetty wrote: »

Also check your early repayment penalties - once you allow 3% for a balance transfer, you might find it's not actually much cheaper. Personal loans often have front loaded interest, so you won't save bundles by paying early.

Talk to your lender or read the terms and conditions.

My partner just paid off the last of her HSBC personal loan. She was paying £169.78pcm (minimum) on a £5000+ loan, but had been massively overpaying, usually double. She'd only had the loan 11 months, but the balance was down to under £2k already. She tried to pay off the balance via internet banking, but HSBC rang her that very second and informed her the payment amount she had attempted to make was incorrect. Her settlement figure was well under a grand, due to her previous overpayments, and her intended early full payment. So I think HSBC play ball, in this respect.

Tixy

You cannot pay off an hsbc loan directly with a 0% credit card.

You may be able to get one of the cards that allows you to transfer money to your current account with a 0% promo rate - and then use that to pay off the loan (eg MBNA backed cards and post office cards).

If you consider this option then you'll need to factor in the money transfer fee and whether you'll be able to pay off the full balance in the interest free period.

(You will save interest by paying off early - whilst some loans have the full amount of interest added to the 'balance' at the start of the loan - on those loans the settlement figure will actually be less than the 'balance' showing on the account).

*Vikki*

Thanks guys, your posts have been really helpful, I called them in the end your right they wont allow that. Thats good to hear my outsanding balance wont be as much as it is if they give me back some interest saved! As it should end August 2014 but I will be paying it al off December 2012. So would be nice to get some interest back!