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Paying off a loan with a credit card
biged670
Posts: 408 Forumite
Hello,
Does anybody have any input on the following...
Currently I have a Zopa loan paying £201 a month with an APR of 29.3% and a balance outstanding of £5,436 The settlement figure as of today is £4,296.
I have just been approved for a HSBC credit card with a £6k limit and 0% balance transfers for 32 months if done within the first 60 days with a fee of 1.4%.
I also have a Barclaycard with a £1,200 limit which has no debt on it at all.
I was planning to repay my loan in full by using my Barclaycard; paying over a couple of installments due to the credit limit and each time transferring the balance to the HSBC card thus reducing my debt to 0% APR while only incurring a fee of approx £60.
The problem I have is that the lovely people at Zopa do not allow over payments or extra payments by credit card, only debit card.
The only other method I can think of, would be to do a money transfer from my Barclaycard to my bank account at a fee of 2.9% each time. I would then repay my loan with these funds using my debit card and then transfer the balance from my Barclaycard over to my HSBC card each time at a fee of 1.4%. This would obviously mean a combined fee of 4.3% each time and a total in transfer fees of approx £184.
As you can see there would still be a saving to be made but am i missing another simpler way of doing this maybe?
Cheers
Does anybody have any input on the following...
Currently I have a Zopa loan paying £201 a month with an APR of 29.3% and a balance outstanding of £5,436 The settlement figure as of today is £4,296.
I have just been approved for a HSBC credit card with a £6k limit and 0% balance transfers for 32 months if done within the first 60 days with a fee of 1.4%.
I also have a Barclaycard with a £1,200 limit which has no debt on it at all.
I was planning to repay my loan in full by using my Barclaycard; paying over a couple of installments due to the credit limit and each time transferring the balance to the HSBC card thus reducing my debt to 0% APR while only incurring a fee of approx £60.
The problem I have is that the lovely people at Zopa do not allow over payments or extra payments by credit card, only debit card.
The only other method I can think of, would be to do a money transfer from my Barclaycard to my bank account at a fee of 2.9% each time. I would then repay my loan with these funds using my debit card and then transfer the balance from my Barclaycard over to my HSBC card each time at a fee of 1.4%. This would obviously mean a combined fee of 4.3% each time and a total in transfer fees of approx £184.
As you can see there would still be a saving to be made but am i missing another simpler way of doing this maybe?
Cheers
0
Comments
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Others have reported Barclaycard are 'happy' to refund positive balances. So BT a ficticious balance from Barclaycard to HSBC, and then ask Barclaycard for your money back!...am i missing another simpler way of doing this maybe?
Disclaimer: if Barclaycard refuse you've paid a HSBC BT fee for nothing.
And finally, next time you have a bright idea, run it by the people on here (:)) because a far better way would have been to get an MBNA card instead of HSBC. Incidentally, why choose HSBC in the first place? And why not run your plan by Zopa before (potentially) wasting a credit search?0 -
YorkshireBoy wrote: »Others have reported Barclaycard are 'happy' to refund positive balances. So BT a fictitious balance from Barclaycard to HSBC, and then ask Barclaycard for your money back!
As the Barclaycard credit limit is only £1,200 I'm pretty sure they would have something to say if I do it 4 times...YorkshireBoy wrote: »And finally, next time you have a bright idea, run it by the people on here because a far better way would have been to get an MBNA card instead of HSBC. Incidentally, why choose HSBC in the first place? And why not run your plan by Zopa before (potentially) wasting a credit search?
I applied for the HSBC card as it was the most likely I was to be accepted for according to the eligibility checker. As for running it past Zopa, I didn't think I needed to... what company does not accept credit card payments!?!0 -
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You'd be putting yourself into credit, so the debt limit on the card is irrelevant.As the Barclaycard credit limit is only £1,200 I'm pretty sure they would have something to say if I do it 4 times...
It would be like having a £1200 overdraft limit on your bank account. Would the bank allow you to pay a £6000 cheque in? Yes they would.0 -
Ah I see now, pardon my ignorance. Does anybody have an experience of such a hefty debt being refunded? I understand they may be willing to refund a smaller balance but £4k seems a lot to 'mistakenly' transfer onto my card0
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The "others" I referred to in post #2 have posted their experiences in the stoozing sub-board on here. A search will find them.Ah I see now, pardon my ignorance. Does anybody have an experience of such a hefty debt being refunded? I understand they may be willing to refund a smaller balance but £4k seems a lot to 'mistakenly' transfer onto my card
I've never used Barclaycard like that personally, but have regularly put MBNA into credit by up to £10K* and then made a successful "can I have it back?" call. I've never been asked the reason for the initial credit.
* A max figure I stick to from my days with Egg Money, where transfers above this seemed to involve secondary checks.0
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