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Paying off car finance - Cresit Card or Loan
cellardor
Posts: 3 Newbie
in Credit cards
I would like to pay off my outstanding debt for my hire-purchase car with either a Credit Card or a Loan because of the current high rate of interest.
Is it better to do this with a credit card or a personal loan? The outstanding amount is about £3,500 and I've been told that the finance company (Motonovo) charge a 3% handling fee when paying off with a credit card
Is it better to do this with a credit card or a personal loan? The outstanding amount is about £3,500 and I've been told that the finance company (Motonovo) charge a 3% handling fee when paying off with a credit card
0
Comments
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you wouldn't get a loan that low. what is the interest rate on the HP?
Can you pay the amount off the credit card before any 0% offer expires?
You may also incur a BT fee of another 3% (for example) although there are some no fee BT offers out there (usually for shorter periods than the ones with fees though)
There are also money transfers which just put the money in your account and you pay off the loan with 'cash'. They also have 3% typical fees but you wouldn't also be charged by the finance company for paying by cash.I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
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