Can I change my car loan payment to use credit card? - HotUKDeals
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Can I change my car loan payment to use credit card?

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Just wondering if I can amend my car loan payment from my current account to come out of my credit card? If so is it classes as a purchase or cash advance? thanks Read More
bbfb123 Avatar
1m, 1w agoPosted 1 month, 1 week ago
Just wondering if I can amend my car loan payment from my current account to come out of my credit card?

If so is it classes as a purchase or cash advance?

thanks
bbfb123 Avatar
1m, 1w agoPosted 1 month, 1 week ago
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Responses/page:
banned#1
If you pay it in advance I doubt they will care.

Probably will charge you a 2% fee though
#2
Im not sure you can pay of loans using credit cards, something to do with money laundering but Im happy to stand corrected.
#3
You could get a settlement fee for the loan and stick that on a 0% card I suppose.
#4
I've been told by nationwide that if I pay off the loan with the credit card it will be classed as a cash advance (cash withdraw?) and I will get charged £50 for doing it and then get charged 26% apr daily on the outstanding balance...which would be ridiculously expensive.

I was hoping I could amend the direct debit for a loan to come out from the credit card instead?
#5
call the car finance company and find out. or just tell them you'll pay monthly over the phone as you dont want to pay by dd anymore
#6
discozohan
call the car finance company and find out. or just tell them you'll pay monthly over the phone as you dont want to pay by dd anymore


Its a loan which was for a car purchase, dunno if that makes a difference.
#7
Companys tend not to allow you to pay for loans with credit cards as this is not paying with your money it is using the banks money.
#8
bbfb123
I've been told by nationwide that if I pay off the loan with the credit card it will be classed as a cash advance (cash withdraw?) and I will get charged £50 for doing it and then get charged 26% apr daily on the outstanding balance...which would be ridiculously expensive.

I was hoping I could amend the direct debit for a loan to come out from the credit card instead?


direct debits are set up to take money from a bank account so you cant set one up against a credit card account.

as above, you cant usually settle a loan with a credit card as it isnt your money to settle the debt with.

alternatively, find a credit card which allows money transfers to your current account, then use the cash to settle the loan. you'll then be liable for the credit card balance, obviously
#9
I worked in banking dealing with credit cards for over 20 years and I've never seen that done. It isn't your money so I highly doubt it.
#10
bbfb123
I've been told by nationwide that if I pay off the loan with the credit card it will be classed as a cash advance (cash withdraw?) and I will get charged £50 for doing it and then get charged 26% apr daily on the outstanding balance...which would be ridiculously expensive.
I was hoping I could amend the direct debit for a loan to come out from the credit card instead?
Do you know what Apr means? It's annual not daily oO
#11
LeahMinttoutou
bbfb123
I've been told by nationwide that if I pay off the loan with the credit card it will be classed as a cash advance (cash withdraw?) and I will get charged £50 for doing it and then get charged 26% apr daily on the outstanding balance...which would be ridiculously expensive.
I was hoping I could amend the direct debit for a loan to come out from the credit card instead?
Do you know what Apr means? It's annual not daily oO


Yeah I know but it's still like 2% charge daily on the outstanding balance which would be like £40 a day on a £2000 loan
#12
bbfb123
LeahMinttoutou
bbfb123
I've been told by nationwide that if I pay off the loan with the credit card it will be classed as a cash advance (cash withdraw?) and I will get charged £50 for doing it and then get charged 26% apr daily on the outstanding balance...which would be ridiculously expensive.
I was hoping I could amend the direct debit for a loan to come out from the credit card instead?
Do you know what Apr means? It's annual not daily oO
Yeah I know but it's still like 2% charge daily on the outstanding balance which would be like £40 a day on a £2000 loan


No, £2000 at a APR of 26% is £1.4246 daily, £43.33 monthly or £520 a year.

£40 daily would equate to over a 700% apr.

Edited By: Argoj on Mar 18, 2017 10:30
#13
Argoj
bbfb123
LeahMinttoutou
bbfb123
I've been told by nationwide that if I pay off the loan with the credit card it will be classed as a cash advance (cash withdraw?) and I will get charged £50 for doing it and then get charged 26% apr daily on the outstanding balance...which would be ridiculously expensive.
I was hoping I could amend the direct debit for a loan to come out from the credit card instead?
Do you know what Apr means? It's annual not daily oO
Yeah I know but it's still like 2% charge daily on the outstanding balance which would be like £40 a day on a £2000 loan


No, £2000 at a APR of 26% is £1.4246 daily, £43.33 monthly or £520 a year.

£40 daily would equate to over a 700% apr.


Oh see I asked them and said it would be like £40 a day and she said yes, since the interest would be charged daily. Hmm interesting. Thanks

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