Pay loan with 0% credit card

Andy2019

Hi, I have an outstanding loan balance of £7,400 with Hitachi personal finance with 24 months remaining at 3.9%. They have confirmed that they will take credit card as a method of payment. I was wondering if anyone knows of a credit card provider that would accept this transaction as being accepted for their 0% on purchases criteria. I have tried M&S Bank so far and they have said no. Before I ask every provider out there I wanted to ask if anyone knew of one already ?

Thank you

Paully28

I would have thought that this would be classed as a cash advance, but could be wrong.
Would you be able to get a money transfer CC which would be at 0% if you get the right deal, and then pay off the loan from the money you have transferred from your CC to your bank. I suppose the only thing you have to worry about then is the % rate of the money transfer, and if it would save on the 3.9% you are paying currently.

Andy2019

I’ve thought about a money transfer card but just assumed they wouldn’t go up to the amount I required to pay the loan off in full. I can’t seem to find any info regarding limits. My credit limit on a previous credit card was £7,800 so I know that a 0% purchase card would, in theory be sufficient to pay the balance

[Deleted User]

You need a money transfer card, not a purchases card.

Paully28

Andy2019 wrote: »

I’ve thought about a money transfer card but just assumed they wouldn’t go up to the amount I required to pay the loan off in full. I can’t seem to find any info regarding limits. My credit limit on a previous credit card was £7,800 so I know that a 0% purchase card would, in theory be sufficient to pay the balance

Makes no difference what you got in the past, you might not get the same amount of limit. The lmit would be base don your current circumstances. However,, for example, with my Barclaycard, the money transfer is capped at 90% of the available balance.

Also, are you sure you cannot make overpayments with the loan?

Willing2Learn

!!! wrote: »

You need a money transfer card, not a purchases card.

I agree. And below is the link that provides the OP with information and guidance on how to use a Money Transfer card:
https://www.moneysavingexpert.com/credit-cards/money-transfers/

[Deleted User]

Andy2019 wrote: »

I’ve thought about a money transfer card but just assumed they wouldn’t go up to the amount I required to pay the loan off in full.

A money transfer card will typically have higher limits than other cards, as they're a more prime product.

Your only challenge is getting one.

seatbeltnoob

That's quite strange, I would have thought you can pay anything off with your cc and would be deemed a purchase.


Is it the case of ask and they'll say no.


If you can't get a money transfer card, consider doing a slow stooze. Do your everyday shopping on a 0% purchase card. Pay the minimum on the card and [THIS IS IMPORTANT] Pay every penny of your spend to your personal loan account.


A money transfer card has fees ranging from 1.5% to 3%. So it might not save you as much as you think. 3.9% is very low amount of interest.

Man_From_Bath

is ok for a loan, why are you messing about to save pennies ? concentrate on over paying the loan each month.

[Deleted User]

seatbeltnoob wrote: »

That's quite strange, I would have thought you can pay anything off with your cc and would be deemed a purchase.

No.
You’re paying off a cash advance, so this would be classed as a cash payment.
If the loan company even takes credit cards as payments, which not many (if any) do.

boo_star

seatbeltnoob wrote: »

That's quite strange, I would have thought you can pay anything off with your cc and would be deemed a purchase.

Generally speaking any "purchase" which can be used to convert your credit balance into cash would be considered a cash purchase and attract interest as a cash advance would.