Paying off a loan with a credit card

Andrew_Ryan_89

Hi guys,

My wife has a loan with a balance of £4,400 and has 16 payments left. I thought it would be a good idea if she could find an interest free credit card which is also interest free on cash withdraws. That way, she can pay off the loan with the credit card, make similar payments but just minus the interest.

Can anyone recommend a card?

P.S. This seems very OTT. When settling a loan with a bank, is there a simpler way we can move the balance on to the credit card? And, do credit cards usually have a clause which I need to be aware of?

glentoran99

Andrew_Ryan_89 wrote: »

Hi guys,

My wife has a loan with a balance of £4,400 and has 16 payments left. I thought it would be a good idea if she could find an interest free credit card which is also interest free on cash withdraws. That way, she can pay off the loan with the credit card, make similar payments but just minus the interest.

Can anyone recommend a card?

P.S. This seems very OTT. When settling a loan with a bank, is there a simpler way we can move the balance on the credit card? And, do credit cards usually have a clause which I need to be aware of?

if you find one let us know,

Andrew_Ryan_89

glentoran99 wrote: »

if you find one let us know,

Will do. Metro Bank had one back in 2011 or so and Halifax had one as well not too long ago

Bogalot

Andrew_Ryan_89 wrote: »

Will do. Metro Bank had one back in 2011 or so and Halifax had one as well not too long ago

They allowed cash transfers, not withdrawals. That means you could pay off the loan by transferring the balance, it's known as a super balance transfer card.

Andrew_Ryan_89

Bogalot wrote: »

They allowed cash transfers, not withdrawals. That means you could pay off the loan by transferring the balance, it's known as a super balance transfer card.

Nope, you could walk up to the cash machine and take out money interest free.

Bogalot

Andrew_Ryan_89 wrote: »

Nope, you could walk up to the cash machine and take out money interest free.

If you claim to know more than the rest of us I wonder why you ask for help.

Or maybe you could point us to these cards?

agrinnall

Andrew_Ryan_89 wrote: »

Nope, you could walk up to the cash machine and take out money interest free.

Maybe so (although I've never heard of such a card), but was there a cash withdrawal fee charged?

Ebe_Scrooge

Andrew_Ryan_89 wrote: »

When settling a loan with a bank, is there a simpler way we can move the balance on the credit card? And, do credit cards usually have a clause which I need to be aware of?

As others have said, any credit card is going to charge you a fee ( and usually interest from the date of withdrawal ) for withdrawing cash at an ATM. There are "super balance transfer" cards that deposit money into your bank account, then you pay off the resulting credit card debt at 0%. But there is almost always a Balance Transfer fee, calculated as a percentage of the amount transferred, so you need to do the sums to see if it's worthwhile in your particular circumstances.

Andrew_Ryan_89

Bogalot wrote: »

If you claim to know more than the rest of us I wonder why you ask for help.

Or maybe you could point us to these cards?

I am not claiming anything, just responding to your post. I just mentioned that Metro Bank (back in 2011) and Halifax previously had such cards and that I will mention it here if such a deal was to pop up again. I am asking for help in regards to a loan. I want to know what's the best way to settle it with a credit card.

agrinnall wrote: »

Maybe so (although I've never heard of such a card), but was there a cash withdrawal fee charged?

Nope. The Metro Bank one was during their year anniversary and a friend of mine with the Halifax card had no withdrawl fee. However, to correct myself slightly, with the Halifax card, he still had to settle the full balance to avoid paying interest.

Andrew_Ryan_89

So, something like the below, would that suit my needs?

Halifax Balance Transfer Credit Card (25 Mths)

Balance transfers
0% for 25 months
Balance transfer fee
No fee
Representative APR (variable)
18.9% APR
Pay the balance over
29 months with fees & interest of £21.60
See Deal
Can I get this card?
Transfer a balance within 90 days of opening an account to get the 0% deal; otherwise the rate will be 18.95% p.a.

Bogalot

Andrew_Ryan_89 wrote: »

I am not claiming anything, just responding to your post. I just mentioned that Metro Bank (back in 2011) and Halifax previously had such cards and that I will mention it here if such a deal was to pop up again. I am asking for help in regards to a loan. I want to know what's the best way to settle it with a credit card.



Nope. The Metro Bank one was during their year anniversary and a friend of mine with the Halifax card had no withdrawl fee. However, to correct myself slightly, with the Halifax card, he still had to settle the full balance to avoid paying interest.

The power of the internet means you'll be able to show us examples of these cards. Halifax did have a super balance transfer card in 2011, with a 3% transfer fee. I cannot find any evidence of them having a card that would allow you to withdraw cash at no cost.