Paying off car loan with credit card? Possible?

PenguinForever

I have a loan for my car which comes to an end next year. There will be a balloon payment at the end. To save on interest, I wanted to pay off my car in full now. However, I have more left than I thought! I was just wondering, would it be allowed to pay off a loan like this with a 0% credit card? 

Thanks

MorningcoffeeIV

No 

You'd need a money transfer option.

DullGreyGuy

PenguinForever said:

I have a loan for my car which comes to an end next year. There will be a balloon payment at the end. To save on interest, I wanted to pay off my car in full now. However, I have more left than I thought! I was just wondering, would it be allowed to pay off a loan like this with a 0% credit card? 

There are two considerations...
1) Does the loan company accept card payments?
2) Does your card company consider this a cash like transaction?

1 is unlikely but there are some that will... 2 is a little hard to find out in advance but I'd work on the assumption that they do and so you will not be on 0% but whatever their cash advance rate is which often is a fee + higher interest

The one way you could avoid it is a money transfer card where they allow you to move the cash from the card to your current account at 0% interest (but probably a fee) and then you pay the loan off with a debt card or bank transfer.

Is this HP or PCP? Presumably if PCP you've checked its worth settling rather than handing back?

PenguinForever

Hey guys, thank you for your advice!
I phoned up the loan company, and they do indeed accept credit card without any charges! I also then phoned my credit card company who also confirmed I can do this without any charges. Great news! I was able to pay off my remaining balance and put it onto a 0% credit card which gives me some more time to pay off my car, without paying interest! Great news
thanks guys! 

retiredbanker1

PenguinForever said:

Hey guys, thank you for your advice!
I phoned up the loan company, and they do indeed accept credit card without any charges! I also then phoned my credit card company who also confirmed I can do this without any charges. Great news! I was able to pay off my remaining balance and put it onto a 0% credit card which gives me some more time to pay off my car, without paying interest! Great news
thanks guys! 

I would phone again and ask them to confirm in writing.
IMO only people who are in arrears or in danger of defaulting get the option of a credit card payment.

If you are successful in getting it done good luck.