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    • tmwild
    • By tmwild 20th Apr 17, 12:07 PM
    • 9Posts
    • 1Thanks
    tmwild
    Not allowed to pay off car finance with a credit card
    • #1
    • 20th Apr 17, 12:07 PM
    Not allowed to pay off car finance with a credit card 20th Apr 17 at 12:07 PM
    I'll be coming to the end of my PCP agreement this September and I decided to put a plan together to settle the finance early. The car is currently worth more than the settlement figure, so I'll lose out by just giving it back at the end of the agreement.

    I was planning on using a combination of debit card and credit card (0% on purchases for 30 months) to pay the final settlement but when I called to do that, I was told they cannot accept credit card payments.

    What are my options? Is there a way for me to move the credit into my bank account and still benefit from the 0% interest on purchases for 30 months?
Page 1
    • StopIt
    • By StopIt 20th Apr 17, 12:13 PM
    • 485 Posts
    • 415 Thanks
    StopIt
    • #2
    • 20th Apr 17, 12:13 PM
    • #2
    • 20th Apr 17, 12:13 PM
    You'd need a money transfer card, rather than a balance one.


    Paying off debt with credit is generally a no-go for most finance companies.


    Or: Pay for day to day spending with the 0% purchase card for as long as you're able to and use the money saved to pay off the PCP, then pay off the CC at 0% before interest is accrued.
    • tmwild
    • By tmwild 20th Apr 17, 12:35 PM
    • 9 Posts
    • 1 Thanks
    tmwild
    • #3
    • 20th Apr 17, 12:35 PM
    • #3
    • 20th Apr 17, 12:35 PM
    You'd need a money transfer card, rather than a balance one.


    Paying off debt with credit is generally a no-go for most finance companies.


    Or: Pay for day to day spending with the 0% purchase card for as long as you're able to and use the money saved to pay off the PCP, then pay off the CC at 0% before interest is accrued.
    Originally posted by StopIt
    I've just last week applied and been accepted for my 0% purchases card so I assume it's very unlikely a money transfer card would be approved so soon after, especially with the sort of limit I'd need.

    I got the card specifically for this purpose! What a pain. Suppose I should have checked but it didn't cross my mind that they wouldn't accept credit card.
    • EssexHebridean
    • By EssexHebridean 20th Apr 17, 12:43 PM
    • 7,295 Posts
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    EssexHebridean
    • #4
    • 20th Apr 17, 12:43 PM
    • #4
    • 20th Apr 17, 12:43 PM
    Plan B then as suggested - use the purchase card for all your spending and divert the "unspent" money to clearing the finance. The question is, can you claw enough back that way to clear the outstanding balance? Failing that, sit tight for three months and then try applying for the money transfer card - using the MSE credit club to check your eligibility first, of course!
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£373.02
    • gr1340
    • By gr1340 20th Apr 17, 12:59 PM
    • 60 Posts
    • 36 Thanks
    gr1340
    • #5
    • 20th Apr 17, 12:59 PM
    • #5
    • 20th Apr 17, 12:59 PM
    I have done this before now to get money from a credit card. It cost me £1.99 transaction fee from PayPal but that was all. It was only for a small amount, circa £60 but it allowed me to pay something off early. The credit card company only see it as a purchase so no cash fees or anything like that.

    1 - Add credit card to PayPal account, pay a family member or trusted friend the amount you need.
    2 - The transaction will show as a purchase and therefore eligible for 0%.
    3 - Get family member/friend to pay withdraw the money and pay into your account.

    I assume you can still do this as it was only 3 or 4 months ago that I did it.
    Last edited by gr1340; 20-04-2017 at 1:01 PM.
    • Farel01
    • By Farel01 20th Apr 17, 3:54 PM
    • 91 Posts
    • 111 Thanks
    Farel01
    • #6
    • 20th Apr 17, 3:54 PM
    • #6
    • 20th Apr 17, 3:54 PM
    I have done this before now to get money from a credit card. It cost me £1.99 transaction fee from PayPal but that was all. It was only for a small amount, circa £60 but it allowed me to pay something off early. The credit card company only see it as a purchase so no cash fees or anything like that.

    1 - Add credit card to PayPal account, pay a family member or trusted friend the amount you need.
    2 - The transaction will show as a purchase and therefore eligible for 0%.
    3 - Get family member/friend to pay withdraw the money and pay into your account.

    I assume you can still do this as it was only 3 or 4 months ago that I did it.
    Originally posted by gr1340
    What credit card company are you with? I have heard that companies are closing down that loophole/have closed it down. Though you could try with a smaller amount first. Also bigger amounts may have more of a fee.
    Debt free as per 22/12/16 -
    • tmwild
    • By tmwild 20th Apr 17, 6:06 PM
    • 9 Posts
    • 1 Thanks
    tmwild
    • #7
    • 20th Apr 17, 6:06 PM
    • #7
    • 20th Apr 17, 6:06 PM
    Does anybody know if money transfer cards are likely to give similar limits to purchase credit cards? Am I right in thinking it's too soon to apply or am I being pessimistic?

    I'm doing the maths and think I'll struggle to reach the amount I need just by moving my spending to the credit card. Especially as I'll have to pay off the minimum each month and I'm assuming I can't move my direct debits/bill payments over to come off the credit card?

    I'd be worried that they'd spot the Paypal transfer and start charging me interest on the £6,000! Finding a genuine purchase of something which is bought and sold very frequently with little to no change in price seems like an option - I just don't know what that purchase would be!
    • cwal
    • By cwal 20th Apr 17, 8:48 PM
    • 127 Posts
    • 118 Thanks
    cwal
    • #8
    • 20th Apr 17, 8:48 PM
    • #8
    • 20th Apr 17, 8:48 PM
    Mbna may be a good place to start for a money transfer card. I believe they generally offer slightly higher balances ( from personal experience) however as others have said, try the eligibility tool first as with another recent application in your name you will probably only get one chance to apply for another card so soon.
    • January2015
    • By January2015 20th Apr 17, 9:51 PM
    • 1,693 Posts
    • 4,597 Thanks
    January2015
    • #9
    • 20th Apr 17, 9:51 PM
    • #9
    • 20th Apr 17, 9:51 PM
    I'd be worried that they'd spot the Paypal transfer and start charging me interest on the £6,000! Finding a genuine purchase of something which is bought and sold very frequently with little to no change in price seems like an option - I just don't know what that purchase would be!
    Originally posted by tmwild
    I would be wary of considering using Paypal to transfer money from a credit card. A colleague purchased a vehicle from a relative last year. It was £2,800. In order to use a 0% credit card offer they paid the relative through the credit card via Paypal. Paypal put a stop on the payment whilst they investigated money laundering. All the while the payment had left the credit card account but never reached the relative. They sorted it out eventually - and it did take a while. Just beware that if Paypal want to hold your money they are law unto themselves.

    Paypal do say on their site if you want to send money or gifts to friends or relatives you can do this. However, when large amounts of money are involved they seem to get twitchy.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    Xmas 2017 £1 p/day challenge No. 20 - £420/£730
    Make £10 p/day Feb £74.31, Mar £664.37 Apr £40
    • StopIt
    • By StopIt 21st Apr 17, 8:23 AM
    • 485 Posts
    • 415 Thanks
    StopIt
    I would be wary of considering using Paypal to transfer money from a credit card. A colleague purchased a vehicle from a relative last year. It was £2,800. In order to use a 0% credit card offer they paid the relative through the credit card via Paypal. Paypal put a stop on the payment whilst they investigated money laundering. All the while the payment had left the credit card account but never reached the relative. They sorted it out eventually - and it did take a while. Just beware that if Paypal want to hold your money they are law unto themselves.

    Paypal do say on their site if you want to send money or gifts to friends or relatives you can do this. However, when large amounts of money are involved they seem to get twitchy.
    Originally posted by January2015

    As will any other credit provider. See the threads related to mule cards for people being caught out by money laundering checks. After all, it does look pretty dodgy to suddenly funnel thousands of pounds via this method to seemingly random people!


    I certainly wouldn't want to risk having my money held up like this so would discount PayPal but it's certainly the OP's call.
    • gr1340
    • By gr1340 21st Apr 17, 12:52 PM
    • 60 Posts
    • 36 Thanks
    gr1340
    What credit card company are you with? I have heard that companies are closing down that loophole/have closed it down. Though you could try with a smaller amount first. Also bigger amounts may have more of a fee.
    Originally posted by Farel01
    The card was with Tesco.

    I guess as it was only a small amount it would never get noticed, they probably would have shown some interest and I tried several thousand as a 'gift'.

    Probably best not to use this method then.
    • DD265
    • By DD265 21st Apr 17, 4:40 PM
    • 1,263 Posts
    • 3,185 Thanks
    DD265
    I'm trying to remember the original purpose of my Barclaycard, but I negotiated a 0% on purchases offer in 2015/2016 and I still get a decent money transfer offer. I'll actually be using it to borrow £2k for a car purchase next month.

    My MBNA card does have a significantly higher limit as somebody else in the thread mentioned, and that was definitely taken out as a 0% on purchases card. I still have balance/money transfer offers, but the fee is slightly higher and the term shorter than the Barclaycard, so it's only worth it if I want to take out more than £2k.

    From what I recall, the money transfer doesn't affect the purchases offer. In the past I've had balances where the interest free term varies by transaction. One thing to note though is that you can't usually use the entire limit of a card for a balance or money transfer. I'm not sure what the threshold is but your online account should tell you how much is available to you.
    Barclaycard: £600.00/£2907.26 - 79% paid
    MBNA: £6000 to go
    Savings: £1051.68
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