Pay off loan

stuarta99

Hi all,

I'm just looking at the switch to Nationwide and also their credit card.  I see at the moment they have a 2 options, one is 18 months 0% on balance transfers and 0% for purchases while the other is 15 months for balance transfers and purchases.

Would it make sense to use one of these offers, I'm guessing the 2nd one, to pay off an existing car loan that has around 2 years left to go to benefit from the 0% assuming the credit limit is high enough?  I've checked with the lender and it says the loan can be paid off with a debit card but makes no mention of a credit card.

Many thanks

Ebe_Scrooge

You can't pay off a loan with a credit card.  One option may be a money transfer credit card, assuming you can get accepted for one with a high enough limit.  There's usually a fee for doing the transfer, and you must make absolutely sure you'll be in a position to clear the balance in full when the 0% deal expires - as well as making the minimum payments each month.

DullGreyGuy

Even if you could find one that did it'd be treated as a cash like transaction and so be excluded from the 0% offer and incur the additional interest and charges.

A money transfer offer will get you your 0% interest for a fee but this only works economically if you pay it off within the period as otherwise the higher interest rate of credit cards will almost certainly quickly eliminate any savings made

stuarta99

ah ok thanks and wasn't sure if you could use this credit card but obviously not