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Use of CC to pay off loan?
isthatacrow
Posts: 5 Forumite
in Loans
Hi, this is probably a stupid question:
I have an interest free credit card, that has an offer of a 0% cash transfer with a 3% fee.
If I were to pay off my loan of £1800 early I would save £200 in interest. The transfer would cost £54 and would then be on my credit card.
Does it make sense to pay off my loan early? Is there some obvious pitfall I am missing?
Thanks.
I have an interest free credit card, that has an offer of a 0% cash transfer with a 3% fee.
If I were to pay off my loan of £1800 early I would save £200 in interest. The transfer would cost £54 and would then be on my credit card.
Does it make sense to pay off my loan early? Is there some obvious pitfall I am missing?
Thanks.
0
Comments
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You just need to ensure you clear if before it goes to the standard rate.
It always make sense to save on interest.0 -
yes it make sense - if you can afford to pay off the CC
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Is the loan you are talking about the 20% one that you chatting about getting to build your non existent credit score last year?
https://forums.moneysavingexpert.com/discussion/6000565/current-choice-of-cc-or-loan0
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