Credit Card to Pay Off Loan

LPMarley

Hi Everyone

Does anyone know if it's possible to take out a loan and then pay it off immediately with a credit card so that you'll then be taking advantage of a 0% interest rate?

Thanks

stephane_2

I doubt it very much.....almost nil lenders will accept cc to repay loan...why not apply for a 0% cc directly....?

Tixy

Only if you are able to get one of the few credit cards that allow you to do a money transder to your bank account (which you then use to pay off the loan) - and one with a 0% rate on money transfers.
And you need to factor in the money balance transfer fees - which are typically 4%.

And if you were going to do this then it would be better to skip the loan bit altogether and just use the cash you've transferred to your bank account direct for what you wanted to buy - to save you the interest 'penalty' of repaying the loan early.

Only a few cards allow money transfers - Virgin and other MBNA backed cards and post office cards are the main ones.