Credit Card to get Cash

nick87_2

Hi,
I'm thinking of buying a car sooner than later - it's been in the garage more than the road of the last year.
Anyway being just out of university I'm lucky enough to have a job, and now I'm out of my overdraft I'm starting to put some money away (as long as car repairs doesn't gobble it all up!).

Anyway more to the point my plan is spend around £4k on a car that will be cheap to run, and last for a good few years.

As I'm only 23 I've been good with money, and not yet needed a credit card - now I'm hoping that somehow I would be able to use a credit card to quickly withdraw £1000, and pay it back mega quick (I guess with living at home my disposable income is at least £650 a month).
So to explain my plan of action, I would save up £2000, my car is worth at least £1000, then use a credit card to withdraw £1000 = £4000.
Then I would pay off my credit card with whatever money over a grand I make from the sale of my car, and a months income. But to be prudent I would say it would take two months to pay off £1000.

My questions is does this sound feasible? The reason I want to buy a car sooner than later is because I am having car problems at the moment.
I guess another question is, is there a credit card plan that would allow me to do this? Especially being 23? Although I can provide payslips to prove my income.
I guess there is my credit history, which will have nothing on file as I've never had a loan/credit before, but I guess that won't work to my advantage.

Any help would be appreciated - And sorry for the long post!

lisyloo

My questions is does this sound feasible?

For someone that has had credit cards before then yes it's perfectly feasible.
Your problem is your lack of credit history.

You will probably be better off trying your bank first for a credit card as they have internal information on how you have managed your account.
However that probably means you won't have access to the best deals on other 0% credit cards and will probably get a low limit to begin with (hundreds not thousands).

So I'm afraid I think your lack of credit history is a major flaw in the plan.

Could your parents lend you the money?
I woudl also suggest setting up a credit card anyway whether you need it on not as you need to start building credit history.

bouncydog1

I would also suggest that you do not use a credit card to withdraw cash because you will be charged a very high interest rate.

Are you confusing this with a super balance transfer, which is where some credit cards will allow you to transfer cash to your bank account for a fee of around 4% and then pay it off over several months at either low or no interest?

Best all round to try and save up or buy a cheaper car.

nick87_2

Well, I have no knowledge whatsoever as regards to credit cards, so I didn't even know what a super balance transfer was until you explained it below

I guess I will just have a look around since my credit history is my super flaw.
The parents can't help my at the moment, well not for a few months, but I plan to be sorted by then.
Saving up an extra month or two wouldn't be that bad, as long as my car doesn't decide to give up again!

Thanks for the advice so far

Russe11

haggle the price of the car down

speedbird1973

Without the credit card you have £3k for a car already.

Also if you get a credit card, the dealer will let you pay £500 or so on the card as a deposit. Which would give you £3.5k for a car. you could pay that off easier too!

nick87_2

Speedbird - Thanks! I had never thought of that. Although I would like the option of buying private I will take this into consideration nonetheless!