Balance transfer or a purchase?

luksakura

Hi,

If I want to pay off a finance agreement, in the eyes of the credit card company would this be classed as a balance transfer or a purchase?

I'm in a sticky situation where the cheaper alternative is to take the finance, I know I can pay it off early and there is a fee, but it's a lot cheaper to move it onto 0% card.

Any help would be appreciated, as to back out of the order is going to cost me £500, so I'm stuck and have to have the doors. Otherwise I've lost £500 for nothing :-(

Tixy

have you checked the finance agreement will accept payment by credit card?

If they will then it would probably be a purchase transaction (although it could possibly be classed as a cash advance). It would not be a balance transfer.

luksakura

I have check terms of the finance, there is a 2.5% fee, which is small compared to the amount of intrest I will pay over the term of the finance I'm backed into a corner with company, they must get good commission for finance as the price if I finance else where is £300 more. If I don't have the order I'm in breech of contract and will have to pay £500 for nothing, as they haven't even surveyed.

Forgive me I'm not that into all this, I tried and avoid credit if I can, what do you mean by cash advance? Is this like drawing the cash out of the machine?

Would they tell me if I rang up and asked them?

There paper work is written so impeccabley the citizens advice see no way out of it. Lesson learned the hard way :-(

*Rainbow*Warrior*

Some cards won't do a balance transfer to pay off a loan, and will only accept a balance transfer to another credit card. You may have to use one of the cards which offers a transfer into your bank account and then use the funds to pay off the loan yourself. Some cards will offer 0% for a period of months on a transfer to bank.

EDIT re the above post - if you withdraw cash at an ATM there is a daily limit to the amount you can withdraw and you will have to pay charges and interest. I think you can withdraw more over the counter in a branch but you still have to pay fees and interest. The best option is probably what I suggested above, look for a card that will offer a balance transfer in the form of a transfer of funds into your bank account.