paying loan with credit card

MrFrugalFever

Hello MSE peoples!

Other than the Curve Card and a Money Transfer card, is there anyway of paying off a personal loan with a credit card (little hacks as it were).
There used to be products whereby you could top up accounts with a credit card (such as savings apps).

Any prepaid cards that can be topped up using a credit card?

Basically want to pay off a high interest loan with a 0% purchase credit card.

Thanks for any help!

[Deleted User]

You need a money transfer card to put cash into your bank and then you can pay off the loan then pay back the card (normally 0%) over a fixed time period

MrFrugalFever

Hi, thanks farfetch,

I am able to get a 0% purchase and BT card with CAP1 (I haven’t actually applied but indication is good) but not eligible for any money transfer cards yet.

I was just wondering if there was an account that could be topped up by credit card to then enable me to pay off the loan but I fear that even if there was, it would be treated as a cash advance?

When I had a curve card, barclaycard did not treat topping up a savings account as a cash advance but I don’t have curve anymore.

thanks again,

Grumpy_chap

How are the payments made to the loan?

Some loans permit credit card payments through their online portal.  This was the case with the store-linked loan that we had for furniture on the "buy-now-pay-later" arrangement.  FYI - our loan was Hitachi Capital.

MrFrugalFever

It is currently a direct debit and any overpayments I have made I’ve had to call them up and do it via debit card over the phone.

[Deleted User]

If you take money off your normal card rather than a money transfer card you will get charged a fee and be subject to lots of interest.

Try the eligibility checker at MSE for MT cards and see

DebtSurfer

I can think of a trick.
Imagine paying off one card (say, Card A) with another via balance transfer from Card B.
Then for this month you won't have to use real money/bank account/debit card to pay off Card A, and you can use these money to cover your loan payment.
Granted, there can be a charge for the balance transfer, but the end result is that your loan payment will be made from Card B instead of real money/bank account/debit card. 

For that, your balance on Card B will be increased by the amount paid and potentially the balance transfer fee (usually the case of 0% balance transfers, like 0% APR and 2.4-2.9-2.99% fee), -- or you now have more debt at a lower interest rate there (the case of balance transfers like 7.9% APR for 18 months).

One condition is that Card A is normally being paid from your bank account via Direct Debit and out of three options available: (1) minimum payment only; (2) always balance in full; (3) certain fixed amount unless balance is lower -- you should have (1) or (2) as these options are taking the amount paid separately into account and reduce or remove the current Direct Debit payment -- please note that option (3) fixed amount does NOT reduce your monthly payment.

MrFrugalFever

Thanks debtsurfer but unfortunately that would only provide 1 months payment worth to put towards the loan rather than settle in full.

There was a time whereby you could top up an account using a credit card but that soon came to an end, either by the transactions being treated as ‘cash-like’ or stopped by the receiving bank/account and only debit card or BACS allowed.

The only other solution I could think of, but yields a high interest and negatively impacts your credit rating is to withdraw cash off the credit card. Not a solution I wish to use.

martinbainbridge1975

MBNA do a money transfer card with 0 per cent for 18 months