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Loan from Credit Cards

Moneybasket
New Visitor

Loan from Credit Cards

Hello, I was wondering if anyone here knows what credit cards allow you to take a term loan from the credit card it self for a fixed fee? I heard about this in a youtube channel where the guy takes a loan from the credit card for 18 months but only pays a one time 4% fee. I've been looking for this credit card but still nothing.

8 REPLIES 8
AllZero
Mega Contributor

Re: Loan from Credit Cards

Message 2 of 9
Harvey26
Valued Contributor

Re: Loan from Credit Cards

@Moneybasket Discover, Citi, B of A come to mind discover does the 4% fee for 18 months. I had one for my Citi card and i think the terms were the same and then b of a sends checks or you can call to see if you have an offer. 

Message 3 of 9
ddm2k1
Frequent Contributor

Re: Loan from Credit Cards

In my experience, here's how I'd rank offers: 

 

1st pref. Personal loan. Keep the balance off revolving lines of credit entirely. Doesn't impact your UTIL. Outside of banks and credit unions, alt-funding personal loans (and loan-like products) such as Upstart, Upgrade, Avant, Mariner, OneMain, etc. can come with 3-to-4 figure loan fees. You read that right. 

 

2nd pref. BT checks. Not sure if retail banks do this, but CU's like PenFed will give you checks you can write to yourself, often with terms such as 12 mos. @ 0% or 18 mos. @ 2.99%. These generally carry a one time fee around $35. Will use up your revolving utilization, beware that your credit score may drop (for UTIL reasons) until the balance is paid down. 

 

3rd pref. Term loan from CC - such as My Chase Loan. Rates are not as favorable as other products, usually 6.xx - 9.xx% fixed with a set term (installment type product) so there's no guessing game at how much to pay if you want it paid off in a certain amount of time. Despite the higher rates, there are typically no add-on fees associated with these products. 

 

4th pref. Charging to a CC then using a split-payment or Pay Over Time feature. I'd probably never use this option, even if it were the only one I had. On the different implementations it either goes straight to revolving balance (we're trying to avoid murky math and vague payoff projections) or some products offer a "no interest - only a fixed fee per month" that if you break it down, equates to 20% interest. The only actual benefit being a definite payoff date, unlike charging something to a conventional CC. 

 

-

 

All but 1st Pref will ding you on your revolving utilization. You may be dinged as far as offers you receive when applying for new credit while utilization is high, even on a single card, and while your aggregate is low. This is the order I'd try to secure funding, and #4 I'd probably skip altogether. 

Message 4 of 9
Dumbee
Established Contributor

Re: Loan from Credit Cards

Aside from the other answers

 

Chase I think at times offers My Chase Loan, allowing you to tap part of a CC limit with them as a loan

 

SECU sends me cash advance checks occasionally. I don't think they directly say it's a cash advance so I believe I can draw up to the max CL on each one if desired, without regular CA limit in the cards' terms. No CA fee either, just no interest grace period.

 

Pretty sure plenty of CUs do similar stuff, though as someone said: maxing CC will tank your score and bring creditors' eyes on you


Smiley Embarassed
Personal/40.15K Biz/23K POT/17K
Message 5 of 9
Moneybasket
New Visitor

Re: Loan from Credit Cards


@ddm2k1 wrote:

In my experience, here's how I'd rank offers: 

 

1st pref. Personal loan. Keep the balance off revolving lines of credit entirely. Doesn't impact your UTIL. Outside of banks and credit unions, alt-funding personal loans (and loan-like products) such as Upstart, Upgrade, Avant, Mariner, OneMain, etc. can come with 3-to-4 figure loan fees. You read that right. 

 

2nd pref. BT checks. Not sure if retail banks do this, but CU's like PenFed will give you checks you can write to yourself, often with terms such as 12 mos. @ 0% or 18 mos. @ 2.99%. These generally carry a one time fee around $35. Will use up your revolving utilization, beware that your credit score may drop (for UTIL reasons) until the balance is paid down. 

 

3rd pref. Term loan from CC - such as My Chase Loan. Rates are not as favorable as other products, usually 6.xx - 9.xx% fixed with a set term (installment type product) so there's no guessing game at how much to pay if you want it paid off in a certain amount of time. Despite the higher rates, there are typically no add-on fees associated with these products. 

 

4th pref. Charging to a CC then using a split-payment or Pay Over Time feature. I'd probably never use this option, even if it were the only one I had. On the different implementations it either goes straight to revolving balance (we're trying to avoid murky math and vague payoff projections) or some products offer a "no interest - only a fixed fee per month" that if you break it down, equates to 20% interest. The only actual benefit being a definite payoff date, unlike charging something to a conventional CC. 

 

-

 

All but 1st Pref will ding you on your revolving utilization. You may be dinged as far as offers you receive when applying for new credit while utilization is high, even on a single card, and while your aggregate is low. This is the order I'd try to secure funding, and #4 I'd probably skip altogether. 


Thanks am trying to get loans at the lowest rate possible, the Personal loans that have been offered to me usually have rates from 7% to 10% even tho my scores are above 750 and am trying to get rates under 5%.

Message 6 of 9
Moneybasket
New Visitor

Re: Loan from Credit Cards


@Harvey26 wrote:

@Moneybasket Discover, Citi, B of A come to mind discover does the 4% fee for 18 months. I had one for my Citi card and i think the terms were the same and then b of a sends checks or you can call to see if you have an offer. 


Thank you so much, this is definitely the information that I needed, I only have one credit card with citi, and am planning to get a business one from BOA in a couple of weeks. I will give them a call.

Message 7 of 9
ddm2k1
Frequent Contributor

Re: Loan from Credit Cards


@Moneybasket wrote:

@ddm2k1 wrote:

In my experience, here's how I'd rank offers: 

 

1st pref. Personal loan. Keep the balance off revolving lines of credit entirely. Doesn't impact your UTIL. Outside of banks and credit unions, alt-funding personal loans (and loan-like products) such as Upstart, Upgrade, Avant, Mariner, OneMain, etc. can come with 3-to-4 figure loan fees. You read that right. 

 

2nd pref. BT checks. Not sure if retail banks do this, but CU's like PenFed will give you checks you can write to yourself, often with terms such as 12 mos. @ 0% or 18 mos. @ 2.99%. These generally carry a one time fee around $35. Will use up your revolving utilization, beware that your credit score may drop (for UTIL reasons) until the balance is paid down. 

 

3rd pref. Term loan from CC - such as My Chase Loan. Rates are not as favorable as other products, usually 6.xx - 9.xx% fixed with a set term (installment type product) so there's no guessing game at how much to pay if you want it paid off in a certain amount of time. Despite the higher rates, there are typically no add-on fees associated with these products. 

 

4th pref. Charging to a CC then using a split-payment or Pay Over Time feature. I'd probably never use this option, even if it were the only one I had. On the different implementations it either goes straight to revolving balance (we're trying to avoid murky math and vague payoff projections) or some products offer a "no interest - only a fixed fee per month" that if you break it down, equates to 20% interest. The only actual benefit being a definite payoff date, unlike charging something to a conventional CC. 

 

-

 

All but 1st Pref will ding you on your revolving utilization. You may be dinged as far as offers you receive when applying for new credit while utilization is high, even on a single card, and while your aggregate is low. This is the order I'd try to secure funding, and #4 I'd probably skip altogether. 


Thanks am trying to get loans at the lowest rate possible, the Personal loans that have been offered to me usually have rates from 7% to 10% even tho my scores are above 750 and am trying to get rates under 5%.


Dead serious, I know it sounds cheesy, but sign up for Credit Karma and see what personal loan preapprovals they show for you in the app. I would "expect" to have to have pay stubs handy if you get an offer you want to pursue. 

Pro tip: if the offers are "almost there", play around with both the amount and term and you'll see drastic swings in APR. (Lesser amount and/or shorter term gets you lower rates). 

Message 8 of 9
Shooting-For-800
Senior Contributor

Re: Loan from Credit Cards

I just got checks in the mail from Ducks Unlimited for no fee 5.99% apr for the life of the balance.

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Message 9 of 9
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