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.