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Paying off HP loan with 0% credit card
thebritishbloke
Posts: 1,472 Forumite
in Loans
I've currently got a £14.5k hire purchase loan with Banque PSA finance (Citroen finance). I'm only a few months in, but I'm just thinking about what to do towards the end of the loan.
The loan is 4.9% APR if I recall correctly, has anyone had any experience with paying off the rest of the finance? I was thinking that for the last £5/6k I could pay it off with an 18 month 0% credit card? Even if they charge a fee (guessing the max would be 2% due to the new laws surrounding this), it'll probably work out cheaper than keeping the loan.
Like I say, this is only a general question as there's still over 2 years until this day will come. I'm just curious as to if it's an option. I'm currently also saving to pay off the last part in bulk, but I was considering this option instead so that I could use these savings towards a deposit on a house.
The loan is 4.9% APR if I recall correctly, has anyone had any experience with paying off the rest of the finance? I was thinking that for the last £5/6k I could pay it off with an 18 month 0% credit card? Even if they charge a fee (guessing the max would be 2% due to the new laws surrounding this), it'll probably work out cheaper than keeping the loan.
Like I say, this is only a general question as there's still over 2 years until this day will come. I'm just curious as to if it's an option. I'm currently also saving to pay off the last part in bulk, but I was considering this option instead so that I could use these savings towards a deposit on a house.
Credit 'Score' - Don't buy the credit 'score' that Experian, Equifax and Noddle want to sell you. It's an arbitrary number that means nothing when it comes to applying for credit.
ALWAYS HAVE A DIRECT DEBIT SET UP FOR THE MINIMUM PAYMENT ON YOUR CREDIT CARDS, REGARDLESS OF WHETHER YOU PLAN TO LOGIN AND PAY EACH MONTH.
ALWAYS HAVE A DIRECT DEBIT SET UP FOR THE MINIMUM PAYMENT ON YOUR CREDIT CARDS, REGARDLESS OF WHETHER YOU PLAN TO LOGIN AND PAY EACH MONTH.
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Comments
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Only if they accept a card payment and don't then treat it as cash if they do.0
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If anyone happens to come across this thread in the future, figured I'd update. I contacted Citroen Finance, they accept credit card payments (excluding Amex) without any charge. So it may be worth paying off any balloon payment with a credit card, rather than refinancing with your bank or through Citroen.Credit 'Score' - Don't buy the credit 'score' that Experian, Equifax and Noddle want to sell you. It's an arbitrary number that means nothing when it comes to applying for credit.
ALWAYS HAVE A DIRECT DEBIT SET UP FOR THE MINIMUM PAYMENT ON YOUR CREDIT CARDS, REGARDLESS OF WHETHER YOU PLAN TO LOGIN AND PAY EACH MONTH.0 -
I did similar when I bought our last car. We went with the companies (quite high rate) finance which got us a better deal. Paid it off with one credit card before we even collected car then did a balance transfer to another card with a low life of balance rate.0
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RichardD1970 wrote: »I did similar when I bought our last car. We went with the companies (quite high rate) finance which got us a better deal. Paid it off with one credit card before we even collected car then did a balance transfer to another card with a low life of balance rate.
I would do that, but I can't get a high enough credit limit right now! I've just taken out a BarclayCard freedom rewards which has a £3,500 limit. Nationwide soft search shows they'd accept me for their 15 month 0% purchases with a £3000 limit (i've got about 5 credit searches on my account atm due to car finance etc).
So hopefully by this time next year when all of those have gone, I should be sorted to get a larger limit.Credit 'Score' - Don't buy the credit 'score' that Experian, Equifax and Noddle want to sell you. It's an arbitrary number that means nothing when it comes to applying for credit.
ALWAYS HAVE A DIRECT DEBIT SET UP FOR THE MINIMUM PAYMENT ON YOUR CREDIT CARDS, REGARDLESS OF WHETHER YOU PLAN TO LOGIN AND PAY EACH MONTH.0
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