Paying outstanding balance with credit card

david_cox1990

Having weighed up some options and with only £830 left on my loan, I was looking into the possibility of paying the remaining balance and closing down the loan with a credit card.

I've looked into balance transfers before and understand I cannot do that, however would it be possible to pay the balance with a credit card?

To confirm, the loan is with Lloyds Bank.

Thanks all,

lee111s

Most lenders do not allow you to pay credit with credit.




You could get a card such as the MBNA one which allows you to effectively balance transfer cash from a credit card into your bank account for a small fee.


You'll need to work out whether the fee's are worthwhile the amount of interest you'd save.

bigdavecox90

lee111s wrote: »

Most lenders do not allow you to pay credit with credit.




You could get a card such as the MBNA one which allows you to effectively balance transfer cash from a credit card into your bank account for a small fee.


You'll need to work out whether the fee's are worthwhile the amount of interest you'd save.

Thanks mate, I'd looked into balance transfers before and was made aware that this wouldn't be possible.

I don't see any reason why I couldn't clear the loan with a credit card myself, however when I go to clear the balance as such, it only lets me do so with my current account. There is no option online to select another payment method.

I guess the easiest way is to call and ask over the phone if this is possible?

SeduLOUs

He didn't mean a balance transfer, he meant a money transfer.

You get a credit card, that credit card transfers cash into your bank account (for a fee), and then you use the cash in your bank account to pay off the loan.

You can't pay off the loan with a credit card, because you're using borrowing to pay off borrowing. You can't pay credit cards off with a different credit card for the same reason.

Gaz83

You can ask them. Most lenders won't allow it, though.

bigdavecox90

SeduLOUs wrote: »

He didn't mean a balance transfer, he meant a money transfer.

You get a credit card, that credit card transfers cash into your bank account (for a fee), and then you use the cash in your bank account to pay off the loan.

You can't pay off the loan with a credit card, because you're using borrowing to pay off borrowing. You can't pay credit cards off with a different credit card for the same reason.

Sorry, I didn't' explain clearly, this would be an existing credit card and not a new one, so guess I couldn't do this?

glentoran99

why would you do this? especially of its an old credit card im presuming it wouldn't be 0%

bigdavecox90

glentoran99 wrote: »

why would you do this? especially of its an old credit card im presuming it wouldn't be 0%

It would allow me to pay over a longer period and reduce my monthly payments.

There is logic in my madness believe it or not

SeduLOUs

glentoran99 wrote: »

why would you do this? especially of its an old credit card im presuming it wouldn't be 0%

Same thoughts here. What's the point in moving it to incur fees and continue to pay interest?

Get a money transfer card and stop all of the interest altogether (if the fee is less than the loan interest remaining).

What's the APR on the loan? What's the APR on the card you intended to use? How many months of payments left on the loan if you do nothing?

bigdavecox90 wrote: »

It would allow me to pay over a longer period and reduce my monthly payments.

There is logic in my madness believe it or not

All this means is that you'll pay even more interest by extending the term. If you want to extend the term, at least do it on a 0% basis...

bigdavecox90

SeduLOUs wrote: »

Same thoughts here. What's the point in moving it to incur fees and continue to pay interest?

Get a money transfer card and stop all of the interest altogether (if the fee is less than the loan interest remaining).

What's the APR on the loan? What's the APR on the card you intended to use? How many months of payments left on the loan if you do nothing?



All this means is that you'll pay even more interest by extending the term. If you want to extend the term, at least do it on a 0% basis...

Thanks for the advice,

So where will I find a money transfer card?

SeduLOUs

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