Query about paying off loan with % CC

Beci · 18 July 2018 at 9:36AM

Hi - Is there anything to stop me from an early repayment of a loan by using a 0% balance transfer or purchase credit card?
We have approx. £4820 left on a Sainsburys loan and another 22 payments, of which approx. £420 will be interest. I wondered if it's possible to take out a 0% no fee credit card to clear the loan. We could afford a little extra each month to enable us to clear the balance in, say, 16-18 months, and I reckon it would save us around £400 in interest.
I can see how it works when using one CC to pay off another CC (believe me, I have plenty of experience with this!) But wasn't sure about clearing the loan. Is there anything to stop me taking out a 0% purchase card and using it to make the payment with Sainsburys bank to pay off the loan?
The card would only be used for this purpose and closed when paid off in full.

Beci · 18 July 2018 at 11:09AM

xpc wrote: »

You will not be able to balance transfer to pay the loan off. A 0% payment may be an option, if you are allowed to make a payment on the loan by credit card, you would need to check.
If you cannot make a payment via credit card then your final option would be a money transfer card, you would need to check the transfer fee to see if this would be a suitable option.

Thanks - this is what I thought. Thanks for your reply! :-)

Query about paying off loan with % CC

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