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Pay off loans with credit card
cemcosouthern
Posts: 1 Newbie
in Loans
I have three banks loans two at 2.5% and one at 8.8%..I also have a decent credit card which offers no interest on cash withdrawals for 30 months.
My question is should I pay off the higher rate loan with the card if that makes sense.
Any advice really appreciated.
My question is should I pay off the higher rate loan with the card if that makes sense.
Any advice really appreciated.
0
Comments
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No interest on cash withdrawals? Are you sure?I suspect you are referring to a "money transfer" offer, whereby money is deposited into your bank account and a corresponding debit is made to your credit card. If that's the case then yes, it would make sense to take advantage of this. Bear in mind there will usually be a fee to pay to make the transfer, so you'll need to factor this in to your calculations.You must remember though - doing this does not pay off the debt, it merely moves it from one place to another. You absolutely must have plans in place to make sure the credit card is repaid in full by the time the promotional offer expires. If you don't, any remaining balance will start to attract interest at the card's standard APR, which is likely to be a great deal higher than the rate you're currently paying on the loans. You may be able to balance-transfer the remaining balance to another low-rate card offer - but you cannot and must not bank on being able to do so.0
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