Can you pay off a bank loan with a credit card “Convenience Check”?

Twiztnin: Can you pay off a bank loan with a credit card “Convenience Check”?

Answers and Views:

Answer by Gem
Why would you?

“Convenience checks” from credit card companies often carry huge fees, including a 5% or more fee for using the check. Depending on your bank loan’s interest rate, the “convenience” may cost you. There is also the potential of your credit card interest rate increasing from your “discount rate” up to around 35%.

Most banks are much nicer about late fees and grace periods, than credit card companies.

With the new legislation signed into law last year, you really have to be careful with credit card companies. They now have the legal right to screw you over. Read the terms and conditions carefully before making the decision to do this.

Answer by ladsmrt
Sure- you can “pay down” a higher interest-rate loan w. a lower interest-rate loan– don’t forget that the convenience checks from your credit card cos. charge an added 3%, and sometimes, if you are late with a payment, they can jack that interest rate up to 20-something percent.
Before you just write a convenience check, call your credit-card company and have the terms explained. Always notate your phone calls: the, day, time and who you spoke to.

Answer by conrey
Yes because it’s written on another bank. BUT, the interest rate on the existing bank loan is probably lower than on the credit card and there is the exception if you have a 0 interest credit card once you have used that convience check it will not be 0 interest so check it out before you do this.

Answer by compgeekdotcom
Yes! but beware

Talk to the bank and see what they can do before charging it to the credit card. They might offer a better rate.

Unlike a bank loan which is locked, a credit card has quite a bit of wiggle room to hurt you.

Why not to use the credit card
1. Transfer fees?
2. Higher interest rates is the rate an intro rate?
3. If you are late on another card the CC could change to the default rate (25% or higher)
4. Hurts your credit rating.

Also my credit card changed my rate on a FIXED rate card because they felt I wasn’t paying it off fast enough.

I was hurt by:
Bank of America credit card also labeled as AAA credit card!