Paying off a creation loan

zoebulch

Hi all,

This may seem like a stupid question, but if I was to pay off a creation credit agreement with a credit card, is it classed as a balance transfer or just a purchase? I was advised to transfer money from a credit card onto my debit card then pay that way. But I've heard not all cards do this?

Thanks in advance for any answers

chanz4

creation will charge you a high fee also, it will depend on what they process it as also

Tixy

You need to first ask creation if you can pay off the balance by credit card - many loan lenders will not accept payment by card.

If they accept payment by card then it won't be treated as a balance transfer but you'd need to check with your card provider whether this would be treated as a purchase transaction or cash advance.

If they will not accept payment by card then the alternative would be a credit card that offers money transfers and transfer the money to your bank account and then pay off the loan from your bank account.
As you have been told most cards do not offer balance transfers. Plus there is a transfer fee to pay so don't forget to factor that it when working out if it would be worthwhile.