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

    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

    13 Comments

    Banned

    If you pay it in advance I doubt they will care.

    Probably will charge you a 2% fee though

    Im not sure you can pay of loans using credit cards, something to do with money laundering but Im happy to stand corrected.

    You could get a settlement fee for the loan and stick that on a 0% card I suppose.

    Original Poster

    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?

    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

    Original Poster

    discozohan

    call the car finance company and find out. or just tell them you'll pay … 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.

    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.

    bbfb123

    I've been told by nationwide that if I pay off the loan with the credit … 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

    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.

    bbfb123

    I've been told by nationwide that if I pay off the loan with the credit … 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

    Original Poster

    LeahMinttoutou

    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

    bbfb123

    ​Yeah I know but it's still like 2% charge daily on the outstanding b … ​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" 18th Mar

    Original Poster

    Argoj

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