Paying off loan with CC - is it a purchase?

saver861

So, got the TV last year and put in on 12 months interest free loan of £1k. (Not not quite as good as I had thought as I have to pay £29 early settlement fee for paying it off early, so 2.9% cost - missed that bit otherwise I would have paid for the TV at the time and not bothered with the loan.)

Anyhoooo, I do like to play the credit cards and have done for years when 0% is around. Now I have a 0% on purchases for 27 months card. I was thinking of paying off the loan with this credit card which I can do. Barclays charge 1% to pay off with credit card, but at 27 months, thats still MSE.

What I'm not clear on is whether paying off the TV loan (with Barclays) on the credit card would be considered a purchase? I'm guessing not in which case I'll just pay it off. Anyone know one way or the other?

[Deleted User]

So, probably not, but you need to check with Barclays.

saver861

Deleted_User wrote: »

So, probably not, but you need to check with Barclays.

Barclays provided the loan so they don't care how I pay it off. Credit Card, Debit Card, Cheque. Not sure how checking with them can help me.

The card is the Sainsburys 27 month 0% on purchases, which I'm guessing you mean to check with Sainsburys.?

[Deleted User]

No - how do Barclays categorise card payments on loans? They should be familiar with the codes they use.

Alternatively you could check with Sainsbury's.

saver861

Deleted_User wrote: »

No - how do Barclays categorise card payments on loans? They should be familiar with the codes they use.

Ah ok. So there are different categories for these payments? Did not know that?

On the other hand, would it not be as simple as anything that is not a Balance Transfer or Cash withdrawal be a purchase?

Marchitiello

Pretty sure it will be processed as cash transaction not as Goods Purchase

halkineso

What about PayPal when people asking for money? Also cash transaction? Thank you

Marchitiello

If you send money to friends & family using a credit card instead of bank funding, PayPal treat it differently and charge you an additional fee but not sure if the credit card transaction is recorded as cash

halkineso

Yes I know, PayPal charge 3.4% but what about credit card supplier.

saver861

Well to clear this up I spoke to the Credit Card company. As I had suspected, they say paying off a loan would be a Balance Transfer and not a purchase. The card is 27 months at 0% for purchases and they do have a 12 month Balance Transfer at 0%.

However, the BT fee will be 3% so not a runner. It is possible to contact them and pay off the BT part of the card balance at the end of the 12 months so that you don't pay interest on that part while the purchases continue at 0% for the remaining period of the 27 months.

Info for anyone wondering .... just keep on your toes!!