Credit Cards and Cheques (MINT)

CupCake_3

Just registered so hello everyone - top website

Decided to stop paying interest on my cc balance with Capital One - especially as they keep putting their rates up so switches the balance to Mint.

However, a few days in I got some cheques in the post. According to their paperwork it says the following:

"For each balance transfer and cheque transaction debited to the account on or before 1st November 2006, or during January 2007, we will charge you 2% of the transaction amount (minimum charge £5, maximum £49)."

On a seperate letter it reads:

"'Transfer and save' and cheques until 1st November 2006 - Monthly Rate 0.000% fixed - Annual Rate 0.000% p.a. (fixed)"

Now....

As I'm in the market for a loan - can I write a cheque to myself (at another bank - First Direct), using one of credit card cheques for the sum of money I need to buy a new car.

Thus therefore getting a loan at 0% APR

Sounds good in reality but I wonder if the bank will rumble me and charge it as a money transfer?!

Any ideas or thoughts appreciated.

Si.

CupCake_3

(I think this is a form of 'stoozing' but i'm a bit of a noobie so help me out!)

YorkshireBoy

CupCake wrote:

Any ideas or thoughts appreciated.

What you're proposing is entirely possible and, as you say, is something that stoozers have done for a long time with Mint cheques. However, you must read and fully understand the T&C's before using them.

Have you given any thought to the 2.25% minimum payments that the card will require?

Have you thought about what you'll do at the end of the introductory period? If you can't clear the balance before November, any used & available credit on the card, and your other commitments and circumstances, could act against you when trying to source other 0% cards or loans to reduce your debt servicing costs of 14%.

If you can't switch any residual debt to another card (until you take it back to Mint for their anniversary period), you'll be paying around 14% for your car loan - roughly twice the APR of a 'reasonable' loan.

Resist the temptation to rack up purchases (initially at 0%) with any spare available credit that you have on the card.

CupCake_3

Thanks YorkshireBoy. I've just taken out a 12 month contract job (no i'm not going to kill anyone!) which will pay the sum of money back within 4 months.

The minimum 2.25% is fine as I have a DD in place to pay this from my current account.

I'm good with my controlled spending and only use the CC for 1. Balance transfer and 2. this stoozing so I can buy my new car (its a private buyer) but pay it off over the next few months.

I "could" wait and buy the car in 4mths time without using the card, but in reallity, I needed a car yesterday and currently walking + train + clients not happy when I'm late puts the dampers on the situation.

Sound good?

YorkshireBoy

CupCake wrote:

Sound good?

You seem to have everything under control.

CupCake_3

I better get writing that cheque then

Thanks for your help.