Transfer from credit card to bank account?

wibbler

Hi,

We are looking to buy a car for £2600. We can save this money in about 4 months, but we have found the car now, as long as we pay in cash. So our thought is to get a friend with funds to pay it in cash, and then pay that friend with our interest-free credit card - which we then pay off in 4 months.

(the alternative is to pay by card, which adds about 15% more to the price - long story - and then incur balnce transfer charges later on too).

My question - is there any way to get money into a current account or savings account from a credit card?!

Thanks in advance.

Moggles_2

A few rather special cards will allow you to transfer an overdraft to them, (in other words, transfer cash from the credit card to your current account), at balance transfer rates. You then have funds in your current account with which to pay for your car. You need:

a card issued by MBNA (e.g. MBNA itself, Sony, Virgin), Egg card or the Post Office card

Which option is best depends to some extent on which cards you have at the mo or have held recently.

To maximise the 0% period, 16 months is currently available to new customers from Virgin. There's a 4% handling fee, but no other charges during the introductory 0% period.

IMO, it's best to request your transfer by phone (as opposed to online), so you can make certain the 0% interest rate will apply. You can do this when you call to activate your new card. There's a dedicated, Freefone number.

Virgin allows you to borrow up to 95% of your credit limit. The money arrives in your bank account in about 6 days.

wibbler

Ah - now I was planning to use an M&S card, then balance transfer to a Virgin card. However, with your advice, I can just get the Virgin card and transfer the money to a bank account (even if its not in my name).

Have I got that right?

wibbler

Also, what category of transfers does this bank transfer come under - just wondering what charges they would make for the transfer to bank account?

CannyJock

wibbler wrote: »

Ah - now I was planning to use an M&S card, then balance transfer to a Virgin card. However, with your advice, I can just get the Virgin card and transfer the money to a bank account (even if its not in my name).

Have I got that right?

Do you mean transfer the money to a bank account that's not yours? I'd transfer it to your own then do whatever you like with it.

CannyJock

wibbler wrote: »

Also, what category of transfers does this bank transfer come under - just wondering what charges they would make for the transfer to bank account?

It's a money transfer. 4% fee. http://uk.virginmoney.com/virgin/credit-cards-v1/popup/summary.jsp

Moggles_2

wibbler wrote: »

Also, what category of transfers does this bank transfer come under - just wondering what charges they would make for the transfer to bank account?

Virgin calls it a money transfer. For charges, please see #2 above

wibbler

Great, thanks everyone! Finally, how long do card applications take, do you know?

CannyJock

Virgin give (or used to give) instant decisions online. You get your card within 14 days IIRC. The application form only takes 5 minutes to fill in