is there a way to use a credit card as a 0% interest loan?

kah241172

Hi
I am new to the world of credit cards so not sure I understand how they work. I need access to money to pay a builder. He doesn't accept credit cards, so I need to get hold of cash. Is there a way to use a credit card to get access to money, yet still pay 0% interest? I realise this is asking a lot!

Any advice gratefully received.

Thanks

YorkshireBoy

http://www.moneysavingexpert.com/cards/stooze-cash-credit-cards#MBNA

Up to 16 months 0%, but it'll cost you 4% in fees though.

There is a cheaper way (with a 1% fee) if you can repay in 10 months?

Sammib

Please help....I'm a Forum virgin!! Apart from responding to your post...I can't work out how to post a new thread!! Me and my hubby have searched for this "New Thread" link, but can't find it....can anyone help?? Thank you kindly

YorkshireBoy

Sammib wrote: »

Please help....I'm a Forum virgin!! Apart from responding to your post...I can't work out how to post a new thread!! Me and my hubby have searched for this "New Thread" link, but can't find it....can anyone help?? Thank you kindly

Above the first thread on every board is a 'new thread' button. Here's the one for the credit card section...

http://forums.moneysavingexpert.com/newthread.html?do=newthread&f=11

kah241172

Thankyou Yorkshireboy!

Not sure if I could repay in 10 months. How could I get the 1% deal? Would I then be able to transfer the balance within 10 months to a 0% transfer deal?

Is there any smallprint i should look out for?

YorkshireBoy

kah241172 wrote: »

How could I get the 1% deal?

It's via the M&S card and their Sterling travellers cheque loophole. Will provide more details and a link if it's of interest...but doesn't sound like it is?

Would I then be able to transfer the balance within 10 months to a 0% transfer deal?

Yes, but another (this time 2-3%) fee would be payable.

Is there any smallprint i should look out for?

In general?...with the Virgin/MBNA deal linked to above?...or with the M&S deal?

kah241172

I think I will go for the super balance transfer option. Do you think this will be cheaper overall than a bank loan, say of £6000? You're advice has been much appreciated so far. Thankyou.

CannyJock

A 4% fee over 16 months is equivalent to 3% APR. That's a better rate than any loan you can get.

£6000 will result in a £ 240 fee. Repaying £6240 over 16 months is £390 per month. The minimum repayments on the Virgin Money card is £25 or 1% during the 16 month promotional period.

Personally, I'd only pay the minimum off the card by direct debit during that time. I'd take the rest of the £390 each month and put this in a high interest current/savings account. At the end of the promotional period, you'll have saved up enough to clear the card and you get to keep the interest you've earned.

Potential pitfalls:
1. Make sure the direct debit is in place for the first minimum repayment - if in doubt, pay extra to the card to cover the first repayment
2. Be sure to clear the card in full before the 16 month period runs out - I'd pay it a few weeks early to be on the safe side.
3. Don't spend the money in the savings account!

kah241172

Thankyou. Your advice is much appreciated.

YorkshireBoy

4. Do not make any purchases on the account once you've made the (S)BT.

popsi

YorkshireBoy wrote: »

It's via the M&S card and their Sterling travellers cheque loophole. Will provide more details and a link if it's of interest...but doesn't sound like it is?Yes, but another (this time 2-3%) fee would be payable.In general?...with the Virgin/MBNA deal linked to above?...or with the M&S deal?

Would you be able to post hte details of that deal as I'd like to know more?

Thanks