Paying loan with 0% credit card

loancardpay

Hi,

I have £4000 outstanding on a loan which I am paying 6.4% interest on and I have 18 more payments left on it.

I have rang my loan company and asked if I am able to settle the loan with a credit card. They have stated that this is not possible and that the only way I can pay the loan is through BACS transfer or cheque.

My plan was to pay off the loan with a 0% credit card and then pay off the credit card before the 0% rate ran out. This way I would have more control over payments and I would pay no interest on the amount borrowed.

My question is, is there any way I can get the credit card company to pay off the loan with the inability of the loan company to accept credit card payments?

Thanks for your help

andyfromotley

there are cards that allow you to transfer your OD onto them at 0% plus a fee.

So ask your bank for a temporary od, pay off the loan, transfer OD to card.
You must make sure that your CC allows you to do this, check the fee as i recall the charge was quite high, about 4% of amount transferred.

loancardpay

Thanks for your reply. The CC I am actually looking at has 0% balance transfers for also, would that avoid the 4% fee?

YorkshireBoy

andyfromotley wrote: »

there are cards that allow you to transfer your OD onto them at 0% plus a fee.

So ask your bank for a temporary od, pay off the loan, transfer OD to card.

You don't need to create an overdraft to take a money transfer from the likes of MBNA.

OP, look here...

http://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs

jonesMUFCforever

How much are your monthly repayments now?
Divide the £4k by 17 (always leave one month free to cover difference between statement and interest free ending dates) and see how much you would have to pay.
You also need to factor in the transfer fee.