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

adrian2000

kah241172 wrote: »

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

If you take out the 0% deal on your credit card, please make sure you set up a direct debit to pay the minimum amount otherwise you will lose your promotional rate and revert to the standard rate which could be 26.9% or similar, if you miss or are late with a payment.

Regards
Adrian

YorkshireBoy

popsi wrote: »

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

Thanks

http://www.stoozing.com/forum/YaBB.pl?num=1159043738/0

Warning: Very long thread!

FreddieM

YorkshireBoy wrote: »

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?

I have an M&S Credit card and the Glazier who is fitting my windows won't accept it as a credit card, I need the cash. If I read correctly are you saying that I could buy up to £2500 traveller cheques, pay the Glazier with the cheque and only pay 1% for the privilege, or isn't it that easy?

YorkshireBoy

FreddieM wrote: »

I have an M&S Credit card and the Glazier who is fitting my windows won't accept it as a credit card, I need the cash. If I read correctly are you saying that I could buy up to £2500 traveller cheques, pay the Glazier with the cheque and only pay 1% for the privilege, or isn't it that easy?

There's no easy yes/no answer to that question. For example, you don't say if you're still in the 0% intro period, and it isn't clear whether you're going to give the glazier a fistful of TCs or pay them into your bank first.

Best advice is to read the thread linked to in the post before yours (only the first 2 or 3 pages will give you the gist) and post back with a plan and someone will comment on it.

FreddieM

I have read the link and it's very helpful. I just wanted to be 100% sure that I can do this.
I didn't expect the glazier to refuse my M&S card yesterday evening so it was a bit of a shock and I need to pull my finger out and get something sorted asap

I am into my 2nd month of 0% with M & S so I could pay it off within the interest free period.

The Glazier will only take a !normal" bank cheque ie A & L /nationwide/ etc so giving the TCs isn't an option

thanks for any advice

YorkshireBoy

FreddieM wrote: »

thanks for any advice

Go ahead, it really is "that easy" for you.

The only thing I'd say is to check with your bank that they'll accept the Sterling TCs before buying them!

nikmondo

CannyJock wrote: »

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!

How would you transfer the money from the credit card to your savings account? If you get cash out is there a charge for the CC supplier?

Thanks,
Nik

CannyJock

nikmondo wrote: »

How would you transfer the money from the credit card to your savings account? If you get cash out is there a charge for the CC supplier?

Thanks,
Nik

You phone Virgin's customer services and ask them to process a balance transfer and give them the account details. You also get them to confirm that it will be at 0% for the period, confirm the exact date it ends, confirm the 4% fee, get them to repeat all of the details back and still take a note of their name and the date and time of the call incase you need to query it.

Yes there's a charge for getting cash out from an ATM with a card - very high interest rates and fees. A money transfer is different from withdrawing cash though.

FreddieM

YorkshireBoy wrote: »

Go ahead, it really is "that easy" for you.

The only thing I'd say is to check with your bank that they'll accept the Sterling TCs before buying them!

It was as easy as you said Yorkshire Boy, TCs out of M & S at 1% cost then straight into my bank so a huge THANK YOU :T:T:Tfrom me for keeping me straight.

A word of advice to those doing this. I went into my bank and asked if they would accept TCs the girl behind the desk said no, I asked her to confirm it with her manager and she came back all apologetic and said of course we do.;)

YorkshireBoy

FreddieM wrote: »

It was as easy as you said Yorkshire Boy, TCs out of M & S at 1% cost then straight into my bank so a huge THANK YOU :T:T:Tfrom me for keeping me straight.

Good to know it's still working, as I'm about to go back for a third deal.

Just out of interest, and so we can keep others up to date on the stoozing site, which bank was it? (PM me if you'd rather not say on the board)