0% spending card

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johnpartington
johnpartington Posts: 3 Newbie
in Credit cards
I want to use a new 0% card to pay off a car loan, I could go with a money transfer card but I see 'spending' cards have no fee, so would my over the phone payment to the loan lender be classed as spending?

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  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    If they accept it, which they probably won't, it is likely to go through as a cash transaction.
  • johnpartington
    johnpartington Posts: 3 Newbie
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    How could it be cash transaction? Its not a withdrawal or balance/money transfer so surely it would just show as a payment to a company ie a purchase?
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    It surely wouldn't.

    It'll likely show as a payment of cash as you're paying off a loan, just like any other cash transaction.

    You don't have to get a fistful of fivers out of a wall for it to be a cash transaction.
  • Brynsam
    Brynsam Posts: 3,643 Forumite
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    I think you might find this is theoretical - check if the loan company accepts payments by card.
  • johnpartington
    johnpartington Posts: 3 Newbie
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    Thanks, I checked and they do and i am still struggling to see how it would not be seen as a purchase? do the card company sit and monitor to whom you are paying money on the card and whether you actually 'purchased' anything or not. If I dont ask for it to be transferred to another card or into my bank are they not just happy that the debt is now on their card?
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    It all depends on the category code used by the merchant.

    You may also be aware that things like gambling and currency are also classes as cash. This will have been explained to you in your terms and conditions that you agreed to.
  • SnowTiger
    SnowTiger Posts: 4,461 Forumite
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    johnpartington wrote: »
    Thanks, I checked and they do and i am still struggling to see how it would not be seen as a purchase?

    What do you intend to purchase from the loan company?
    johnpartington wrote: »
    do the card company sit and monitor to whom you are paying money on the card and whether you actually 'purchased' anything or not.

    The simple answer is yes. The credit card company will be aware of the type of purchase you make.

    I purchased a new cooker from AO recently. This is what appears on my online credit card statment:

    Tesco_CC_Details.png

    My credit card provider has details about the company I bought my cooker from, along with the type of business they do.
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
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    johnpartington wrote: »
    I want to use a new 0% card to pay off a car loan, I could go with a money transfer card but I see 'spending' cards have no fee, so would my over the phone payment to the loan lender be classed as spending?

    Do a money transfer, and at the end of the intro rate do a balance transfer, repeat the balance transfer shuffle until you have cleared the balance, probably need 3 cards to be safe.
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