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0% spending card

edited 30 November -1 at 12:00AM in Credit Cards
8 replies 1.1K views
johnpartingtonjohnpartington Forumite
3 posts
edited 30 November -1 at 12:00AM in Credit Cards
I want to use a new 0% card to pay off a car loan, I could go with a money transfer card but I see 'spending' cards have no fee, so would my over the phone payment to the loan lender be classed as spending?

Replies

  • zx81zx81 Forumite
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    If they accept it, which they probably won't, it is likely to go through as a cash transaction.
  • How could it be cash transaction? Its not a withdrawal or balance/money transfer so surely it would just show as a payment to a company ie a purchase?
  • zx81zx81 Forumite
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    It surely wouldn't.

    It'll likely show as a payment of cash as you're paying off a loan, just like any other cash transaction.

    You don't have to get a fistful of fivers out of a wall for it to be a cash transaction.
  • BrynsamBrynsam Forumite
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    I think you might find this is theoretical - check if the loan company accepts payments by card.
  • Thanks, I checked and they do and i am still struggling to see how it would not be seen as a purchase? do the card company sit and monitor to whom you are paying money on the card and whether you actually 'purchased' anything or not. If I dont ask for it to be transferred to another card or into my bank are they not just happy that the debt is now on their card?
  • zx81zx81 Forumite
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    It all depends on the category code used by the merchant.

    You may also be aware that things like gambling and currency are also classes as cash. This will have been explained to you in your terms and conditions that you agreed to.
  • SnowTigerSnowTiger Forumite
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    Thanks, I checked and they do and i am still struggling to see how it would not be seen as a purchase?

    What do you intend to purchase from the loan company?
    do the card company sit and monitor to whom you are paying money on the card and whether you actually 'purchased' anything or not.

    The simple answer is yes. The credit card company will be aware of the type of purchase you make.

    I purchased a new cooker from AO recently. This is what appears on my online credit card statment:

    Tesco_CC_Details.png

    My credit card provider has details about the company I bought my cooker from, along with the type of business they do.
  • foxy-stoatfoxy-stoat Forumite
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    I want to use a new 0% card to pay off a car loan, I could go with a money transfer card but I see 'spending' cards have no fee, so would my over the phone payment to the loan lender be classed as spending?

    Do a money transfer, and at the end of the intro rate do a balance transfer, repeat the balance transfer shuffle until you have cleared the balance, probably need 3 cards to be safe.
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