How can I pay off a personal loan...

[Senex]

...With an interest free balance transfer credit card?

I think I'm right in saying that the CC companies don't allow this.

[Doofus]

Transfer the CC money into your bank account, and then use it pay off the loan.

Am I missing something?

[anyoldcardave]

Doofus said:

Transfer the CC money into your bank account, and then use it pay off the loan.

Am I missing something?

Don,t think they allow cash transfers on the free interest rate either? Cash is usually at a higher rate than standard interest,

[simon_harris]

Why would you want to? There will be a fee for taking the lump sum on the interest free card.

[Senex]

Doofus said:

Transfer the CC money into your bank account, and then use it pay off the loan.

Am I missing something?

I don't think they just dump cash in your current account.

[Senex]

simon_harris said:

Why would you want to? There will be a fee for taking the lump sum on the interest free card.

Yes but the fee would probably be a lot less than the interest on the personal loan.

[nikaiyo2]

You need a cash advance credit card not a balance transfer card! The 2 are different, you can get 0% on both.

https://www.moneysavingexpert.com/credit-cards/mon...

[Senex]

nikaiyo2 said:

You need a cash advance credit card not a balance transfer card! The 2 are different, you can get 0% on both.

https://www.moneysavingexpert.com/credit-cards/mon...

OK I just had a look at that, but look at the difference:

Balance Transfer:



Cash Advance:



The Tesco deal for 27 months at 0% with a 2.95% fee looks pretty sweet.

Just a shame there isn't some way to pay off a personal loan with that card.

Edited by Senex on Saturday 24th August 19:33

[simon_harris]

Most loads these days you pay off the interest at the beginning of the loan so there is no benefit it in paying it off early so worth checking that doesn’t apply in this case

[Senex]

simon_harris said:

Most loads these days you pay off the interest at the beginning of the loan so there is no benefit it in paying it off early so worth checking that doesn’t apply in this case

Mate, I would save over £4k if I paid it off tomorrow.

[MitchT]

Quite a few years ago a friend of mine had a financial spread betting account. He could pay money in with his credit card and it counted as a purchase rather than a cash transfer. He could request funds to be paid out in whatever format he wanted. Didn't take him long to realise that this was a good way to transfer money from his credit card to his savings. Don't know if it's still possible though.

Essentially, I think you need something that will enable you to purchase account credit which you can later redeem. Do any of the crypto exchanges let you pay money into your trading account from a credit card and then withdraw it to a bank account?

[Senex]

MitchT said:

Do any of the crypto exchanges let you pay money into your trading account from a credit card and then withdraw it to a bank account?

Good question. I don't know if that is allowed or if any fees would be incurred.

[quinny100]

simon_harris said:

Most loads these days you pay off the interest at the beginning of the loan so there is no benefit it in paying it off early so worth checking that doesn’t apply in this case

Rubbish.

Nearly all loans to individuals are regulated by the Consumer Credit Act which mandates a rebate of future interest charges where a loan is settled early, less a small admin fee and up to 60 days interest if the lender wishes to charge.

Some lenders add the full term interest to the loan principle and show a running balance with repayments deducted, but this is not the amount you would be required to pay to settle the loan unless it’s very close to the end of the term. You can request a settlement figure at any time.

[MK3 Dan]

Do you have another credit card with a high enough limit to clear the loan?

If so add this to your Paypal account, send the payment to a family payment/partner or someone that you really trust from your Paypal account. Get them to then transfer this your bank and then pay the loan off.

Then do the balance transfer thing on your credit card.

[Senex]

MK3 Dan said:

Do you have another credit card with a high enough limit to clear the loan?

If so add this to your Paypal account, send the payment to a family payment/partner or someone that you really trust from your Paypal account. Get them to then transfer this your bank and then pay the loan off.

Then do the balance transfer thing on your credit card.

Well, that is genius. It just so happens I have two credit cards (with zero balance) that both just get over the amount of the loan.

One tiny problem, I'd have to explain all this financial wizardry to the wife (the only person I would trust), but that's do-able.

Edit for clarity: I mean either credit card would do, They each have more credit available than the loan amount, so I'd only have to use one of them.

Edited by Senex on Saturday 24th August 21:58

[popegregory]

MK3 Dan said:

Do you have another credit card with a high enough limit to clear the loan?

If so add this to your Paypal account, send the payment to a family payment/partner or someone that you really trust from your Paypal account. Get them to then transfer this your bank and then pay the loan off.

Then do the balance transfer thing on your credit card.

This is the answer, use any other credit card to pay it then clear balance with your new spangly zero per cent one

[Senex]

quinny100 said:

Rubbish.

Nearly all loans to individuals are regulated by the Consumer Credit Act which mandates a rebate of future interest charges where a loan is settled early, less a small admin fee and up to 60 days interest if the lender wishes to charge.

Some lenders add the full term interest to the loan principle and show a running balance with repayments deducted, but this is not the amount you would be required to pay to settle the loan unless it’s very close to the end of the term. You can request a settlement figure at any time.

This is correct.

The loan balance is £18415
They would settle tomorrow for £13879

[MrJuice]

Not trying to be clever

I need to pay off about 6k in two weeks so looking for solutions myself but this PayPal hack looks to be a non starter

[MK3 Dan]

MrJuice said:

Not trying to be clever

I need to pay off about 6k in two weeks so looking for solutions myself but this PayPal hack looks to be a non starter

I might be reading that wrong but believe that is only if using a Paypal Credit or debit card?

Been a few years since I did this so things might have changed but sure they didn't charge a fee at the time.

ETA just had a look and setting it up to send some money to a friend it said no charge for this on either my AMEX or Barclaycard.

[MK3 Dan]

Senex said:

Well, that is genius. It just so happens I have two credit cards (with zero balance) that both just get over the amount of the loan.

One tiny problem, I'd have to explain all this financial wizardry to the wife (the only person I would trust), but that's do-able.

Edit for clarity: I mean either credit card would do, They each have more credit available than the loan amount, so I'd only have to use one of them.

Edited by Senex on Saturday 24th August 21:58

Fingers crossed you can make it work!

Only other thing to keep in mind is they normally only let you carry out a balance transfer up to something like 90% of the cards limit.