Repay loan using interest free credit card?

Inverlew

Hi folks, can anyone tell me if I can repay a loan with an interest free credit card? I have a good credit score and have requested an early settlement figure with 2 years to go on the loan. I just wondered if this is possible before I take out an interest free card or if any of you have experience of this? Regards, Lewis

Ebe_Scrooge

You can't pay the loan directly with a credit card, nor can you do a standard balance transfer (where you transfer the balance from one card to another).  One way of doing it would be by using a "money transfer" card, whereby the card company puts money into your bank account, with a corresponding debit onto the card.  You would then use the money to pay off the loan.  Whether you'd be accepted for such a card is of course a different matter - lenders are being far more cautious these days due to Covid (and your score means nothing, it's the data in your credit file that's important).  Also bear in mind that, even in you were accepted, you may not be offered the limit you hoped for, and there may well be a one-off fee to factor in.

If you did go down this route, be absolutely sure you have plans in place to pay off the card when the interest-free deal expires.  You can't bank on being able to shift any remaining balance to another card, and if you leave a balance then the interest you'd pay would likely be far higher than the interest on the loan that you'd paid off.

MallyGirl

Check out the MSE guide to Money Transfers:
https://www.moneysavingexpert.com/credit-cards/money-transfers/
The 0% on MT are usually shorter deals than you would get on purchases or balance transfer and there will be a one off fee of 3% or 4% of the amount transferred.