Credit Card Paying Off Loan

Tommy8

Hi All,

I have an M&S Credit Card and a Natwest loan.

Just Wondered if i can pay off the rest of the loan with the credit card

Cheers

Tom

bengalknights

Yes you can if you want

londonTiger

loan is more secure and often cheaper interest (unless you've got a 0% rate card).

Credit cards should really be used if at the drop of the hat you can pay it off in full becasue they are quite unsecure forms of debt and banks can withdraw the credit.

OTOH loans have fixed repayment plans and the banks will not suddenly ask for full repayment.. there are exceptions though - sometimes on business loans banks will only offer you a loan if you forfeit that right. My friend had a business loan with hsbc and when the mortgage bubble burst they reigned in on him and asked for immediate payment..

sfax

You can't directly unless you take cash on the credit card or the card allows balance transfers to current accounts

It can save a lot of money in interest if you manage it properly but you need an excellent credit rating and if you want to pay the money back over more than 2 years you run the risk of not being able to get a second balance transfer

http://www.stoozing.com/sbt

But cheapest way to do if if you can is to generate cash with one credit card replacing all cash transactions and transferring everything to a 0% BT card like Nationwide 1.5% for 20 months (about 1.5% APR equivalent)

londonTiger

i think you can call the loan company and pay off the balance over the phone with a credit card if im not mistaken.

I think a loan repayment helps your credit score much more than a cc too

sfax wrote: »

You can't directly unless you take cash on the credit card or the card allows balance transfers to current accounts

It can save a lot of money in interest if you manage it properly but you need an excellent credit rating and if you want to pay the money back over more than 2 years you run the risk of not being able to get a second balance transfer

http://www.stoozing.com/sbt

But cheapest way to do if if you can is to generate cash with one credit card replacing all cash transactions and transferring everything to a 0% BT card like Nationwide 1.5% for 20 months (about 1.5% APR equivalent)

sfax

londonTiger wrote: »

i think you can call the loan company and pay off the balance over the phone with a credit card if im not mistaken.

Really? I'd doubt they'd allow you to do this for free

londonTiger wrote: »

I think a loan repayment helps your credit score much more than a cc too

Why would it? The opposite is true. With a loan you are forced to repay a set amount and spoonfed. With credit card debt, you can demonstrate good management of credit and if you do, your credit rating will improve