Pay off loan with using cash withdrawal on 0% credit card

DaveMapp

Hi Everyone!

This is my first post and I am looking for a little advice on paying off my loan, I have a loan I took out with Halifax a few years ago at 29.9%APR and have received a settlement quote of roughly £1500.

I intended to pay off the loan with a 0% credit card so I applied and received my Mastercard today with 9 months 0% period. After calling Halifax i have now found that you cannot repay the loan using a credit card and i should have applied for a transfer card.

I am a bit reluctant to apply for any other cards in the immediate future at risk of damaging my credit rating.

The Mastercard credit agreement states that there is a cash withdrawal fee of 3%. Am I best off doing a cash withdrawal and using this to pay off the card? Will the 0% rate apply to cash withdrawals as well?

Any advice would be greatly appreciated.

PS. I am fairly confident about paying off the balance within the 9 month period and the post introductory rate on the card is 25.95%.

Cheers

Dave

grumbler

DaveMapp wrote: »

I intended to pay off the loan with a 0% credit card o I applied and received my Mastercard today with 9 months 0% period.

0% on what? BTs? Purchases? Money transfers to a current account?

After calling Halifax i have now found that you cannot repay the loan using a credit card and i should have applied for a transfer card.

Again, a typical card with 0% on BTs generally can't be used to pay a loan off. You need a card offering Money Transfers to a current account.

The Mastercard credit agreement states that there is a cash withdrawal fee of 3%. Am I best off doing a cash withdrawal and using this to pay off the card? Will the 0% rate apply to cash withdrawals as well?

No 0% applies to ATM withdrawals.

If you have another CC and 0% is on BTs, you can withdraw from it, then transfer the balance to the new card. This will cost you the cash advance fee plus the BT fee.

SnowTiger

DaveMapp wrote: »

The Mastercard credit agreement states that there is a cash withdrawal fee of 3%. Am I best off doing a cash withdrawal and using this to pay off the card? Will the 0% rate apply to cash withdrawals as well?

Almost certainly not, unless it says so. The 0% offer is probably for new purchases only and not cash advances.

Alternatives:

apply for another card that will allow you to transfer money to your bank account;

put as much new spend on your Halifax card as you can and use the money you would have spent to pay off your loan.

DaveMapp

Thanks for your help!