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Paying Credit Card into my current account?

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Hello all

My partner wants to pay his full credit card limit (card is 0% - card is £2000) into his current account to quickly clear a loan he has, then clear the credit card over a couple of months.

How would he pay a credit card into his bank?

The card is BOS and his bank is HSBC if that helps.

Thanks! :)
Married 1st October 2015:heartpuls

1st Baby due June 2016 :happylove

Comments

  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    Can't be done (directly). Which other cards do you each have?
  • NickX
    NickX Posts: 3,046 Forumite
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    Only a few rather special cards allow you to pay off an overdraft or transfer funds to your Current Account, unfortunately Halifax Bank of Scotland is not one of them.

    Cards that do allow SBT (Super Balance Transfer) which is where they send funds to your Bank Account include Egg, Post Office Card and any card underwritten by MBNA (including Virgin, Sony, Alliance & Leicester and MBNA themselves).

    In addition certain other cards such as MINT and Capital One issue Credit Card cheques that can be paid into a Bank Account at Balance Transfer rates. However, this is not necessarily a satisfactory option because the cheques cannot be ordered and, unless they are already in your possession, you don't know when they are going to drop through your letterbox.
  • skintbuthappy81
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    Thanks both.

    He has Cap 1, HSBC, Barclaycard and the BOS. (all cards are empty)

    Thanks for the replies.
    Married 1st October 2015:heartpuls

    1st Baby due June 2016 :happylove
  • NickX
    NickX Posts: 3,046 Forumite
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    He has Cap 1, HSBC, Barclaycard and the BOS. (all cards are empty)

    No it can't be done with these cards. How about applying for Egg or an MBNA run card as detailed aove ?
  • skintbuthappy81
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    He's advised me that he only has 5 months left on the loan anyway, so he will wait and clear it the standard way of direct debit (to save getting any more cards).

    He only wanted a quick way of doing it so he could clear it!

    Thanks again :)
    Married 1st October 2015:heartpuls

    1st Baby due June 2016 :happylove
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    The only way it could be done with that lot is to take cash advances totalling £2,000. 3 x £500 leaves you £500 short, so will HSBC or Barclaycard do you a £1K cash advance in branch? If not, take out £500 two days running on one of these.

    You'd then BT all these to BOS, with a 3% BT fee charged on all transfers. With a bit of good timing you should be able to minimise the cash rate interest charged, but you will pay 3% fees for all cash withdrawals (£60 in total).

    You should 'over BT' to BOS. By that, I mean you should BT £540, say, from each card. That way, you'll cover both the cash advance fee and cash rate interest charged, and in doing so you'll create a small positive balance which will stop further interest accruing.

    In summary, it'll cost him around 6% to buy x months 0%.

    A word of warning. Taking cash out on a credit card could raise concerns with each lender. Not an issue if you don't plan on carrying balances on those cards again, but they could raise your APR if you spook them.

    I also understand that lenders are now reporting much more detail on account conduct to the CRA's. Included in this are cash withdrawal transactions so you could be alerting other lenders (searching your file) that you're a cash withdrawal maker...bad news in my opinion.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    He's advised me that he only has 5 months left on the loan anyway
    Wish I'd have seen that before composing my last post! :rolleyes:
  • NickX
    NickX Posts: 3,046 Forumite
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    YorkshireBoy, I am impressed with your level of ingenuity in working a way of doing this ;)

    Personally I wouldn't do this, the whole idea of making cash withdrawals is something that I have never entertained, but you have given the OP an option which is great.

    However, seeing as there are only 5 months left on the loan anyway I would say the best bet is to just continue paying as normal rather than introduce the risks associated with cash withdrawals that you have documented.

    Best Wishes for a lucrative 2009 :beer:
  • skintbuthappy81
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    Wish I'd have seen that before composing my last post! :rolleyes:


    :beer: lol

    Thanks for the write up! He has read it and finds the information very useful (for future reference also).

    Gives him a few options anyway...
    Married 1st October 2015:heartpuls

    1st Baby due June 2016 :happylove
  • skintbuthappy81
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    NickX wrote: »
    YorkshireBoy, I am impressed with your level of ingenuity in working a way of doing this ;)

    Personally I wouldn't do this, the whole idea of making cash withdrawals is something that I have never entertained, but you have given the OP an option which is great.

    However, seeing as there are only 5 months left on the loan anyway I would say the best bet is to just continue paying as normal rather than introduce the risks associated with cash withdrawals that you have documented.

    Best Wishes for a lucrative 2009 :beer:


    Thanks for the input Nick! Best wishes to you also! :beer:
    Married 1st October 2015:heartpuls

    1st Baby due June 2016 :happylove
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