Can I pay off a bank loan on a car using my credit card?

Question

I owe $8,000 in car payments to a bank. I would like to pay it off in one fell swoop using my credit card (my credit limit allows this). Will the bank I owe the money to let me "charge" the rest?

Answer 1

Some banks charge a penalty if you pay of loans early. See if your bank does but banks tend to have lower interest rates than credit cards so please sit down and do the math before deciding.As far as whether the bank will let you charge the rest, if there is no penalty for paying off the loan early, how are they to know where you got the money from unless you tell them(not that it will really matter).

Answer 2

I am not sure why you would want to.
Generally speaking you should have a cheaper interest rate at the bank than on a credit card. I am sure every bank has different policies, but I dont think they will let you. You cant use credit card A to make your payment on credit card B. Kind of the same principle.

Answer 3

Yes,they will accept a payment from the credit card in most cases... I am assuming that your interest rate is going to be better. Keep in mind, having the loan converting to an unsecured debt of that size it may have some adverse affects on your credit report.

Answer 4

the dealership might not accept this..whats to prevent you from then putting the car in someone elses name and filing for bankruptcy...the place we got our car from has a statement showing you can not use a credit card for a down payment or to pay off the car

Answer 5

It would be insane, because credit cards are higher interest than a car loan.

Answer 6

Why wouldn't they? They don't care where the money comes from.