0% spending

desktop20

Hi, I currently have a car loan which I would like to pay off. If I were to get a 0% purchase credit card and pay part of this loan off, providing I get accepted and pay the minimum amount every month. Would this be classed as a purchase?

onlyfoolsandparking

I don't believe you can pay a car loan with a credit card (although I've never tried so could be wrong) what you will need is a credit card that offers a 'money transfer' which (in case you don't understand or have never heard of a MT card) means you transfer money into your current account to then do with whatever you wish like say paying your car loan off you then owe the card company at 0% interest and hopefully for a decent term say 18, 24 months or some cards offer longer.

Of course you need to factor in the fee, usually around 4%, although some are going as high as 5% currently although as a new customer you can (If your credit worthiness is excellent) get a fee free card OR low % fee card.

In conclusion if paying off the loan works out cheaper even with a high fee on a MT card and you can pay off the new card before the 0% deal expires then its worth doing.

desktop20

Thank you for that, I will look into that. 🙂