Credit cards at 0%

leepie

I borrowed a sum of money from a family member on the understanding I would pay it back monthly but unfortunately circumstances have changed and they need the money back asap. I don't want to take a loan out for the money as it is a small amount (about £1500 is outstanding) and the APR is high.

Is it possible to get a credit card at 0% for the first year and max it out so that I can repay the full amount to the relative, and pay this off monthly instead? Hopefully I could do it within a year but if anything bad happened could I switch to another 0% for a year card?

I don’t hold a credit card or any loans so don't know much about these things so not sure if this is possible or not? Or would there be a better way of solving the problem that I haven't thought of?

selecta_c

I am assuming you will take £1500 cash off the credit card to repay your relative? If so you would not be eligable for 0% rate as this only covers purchases.You would be charged a cash rate from day one which would be quite high.

NickX

You need a card with SBT (Super Balance Transfer) capability. This means they will transfer funds directly to your bank account.

Only a few special cards allow this facility. You need a card run by MBNA (such as Virgin, Sony, Play, Norwich & Peterborough), Egg or Post Office.

Some other providers such as Barclaycard, Capital One and MINT will provide Credit Card cheques that can be paid into a bank account at Balance Transfer rates, but this is not a favourable option because you never know when such cheques are going to drop through the letterbox.

Moggles_2

Welcome to MSE!

To maximise the 0% period, 16 months is currently available from Virgin on money transfers made in the first 60 days. A 4% handling fee applies.
Minimum monthly payments are the lowest in the UK

http://uk.virginmoney.com/credit-card-v3/

Caution: if this would be your first credit card, you may have a limited credit history. What other credit facilities are held in your name?

leepie

Thanks for all your answers!

So would the virgin one in Moggles's post allow me to transfer the money to my own account before writing a cheque to my relative?

Sorry for being so naive about these things!

Any

leepie wrote: »

Thanks for all your answers!

So would the virgin one in Moggles's post allow me to transfer the money to my own account before writing a cheque to my relative?

Sorry for being so naive about these things!

Can you please answer Moggles's question? Do you have ANY credit history?

Yes, Virgin would allow you to transfer cash into your bank account for 4% fee, but first we need to establish if you can even get a credit card.

Credit card is not your right, credit card companies choose people they want to lend money to.

leepie

Yes I do have a credit history. I had a credit card which I paid off.

I have a mortgage and had a car loan if that affects it, neither of which I have defaulted on

Any

That is very good. It looks like you should be O.K. to get the Virgin card.

Just apply for it and wait till it arrives. Once it arrives, you will have to call them to tell them that ask them to transfer the money to: and have the bank details ready.

Set up DD for the minimum payments that way you will never miss a payment. Because if you ever did that would cancel your 0% promotion. You can always make extra payment whenever you have money spare.

However IF you get refused by Virgin, don't straight away start applying for any other cards - but ask for your credit report and check whether there is any fault and come back here to discuss (too many applications in short period of time can damage your credit rating)

leepie

Excellent, thank you very much, I will get onto Virgin now about applying for the card

leepie

Actually I don't think the virgin card is 0% for what I need it for, I don't really understand the terms and conditions of the interest rates!

Any

QUOTE: "For balance transfers, cheque transactions and money transfers we will charge interest at the rate of 0% in the first 16 months from the account opening date*."

Does that make it any clearer?

Trust me, each of the experts here owns at least one of these cards (me included) so we know what we are doing.

You cannot withdraw cash out of the card. But you CAN transfer them to your bank account.
http://uk.virginmoney.com/virgin/credit-cards-v3/popup/summary.jsp
Cash advances = withdrawing cash from ATM with your card
Money transfers = transfering money to your bank account