money transfer into bank account

raq1812

First post. Be nice

I have been searching the Internet for a loan. Reading on here it has been suggested a credit card would be cheaper. From what I can understand would it work out like this..

I get my credit card with 20 months interest free. I ask my credit card to do a balance transfer to my bank account. So let's say I had 2,000 to work with. The credit card company moves that amount to my bank account, now I have that as cash to play with.I have 20 months to pay the credit card off before getting hit by the interest rate.

Am I correct in thinking this or have I failed to understand something. Please any help would be appreciated, Ovcourse constructive criticism so I can learn.

Thank-you

Raq

CLAPTON

yes it's possible
- you need excellent credit history
- a good salary
- there are only few credit cards that allow balance transfers to current a/cs
- very few that offer 20 months
- you would pay a fee probably about 4%

Fruit_and_Nut_Case

Welcome to MSE. :hello:

Your understanding is correct. However, not all credit cards allow transfers to current accounts. What you need is one which permits "super balance transfers (SBTs)".

Check here for a list.

Edit: I see CLAPTON beat me.

raq1812

Thank-you. Feel better lol.

Is that 4% in the first 60 days or anytime? By any chance do you know any that allow it? I'm going to try virgin they seam highly recommended. Would you suggest any?

Thank-you for your quickly reply. My problem Is I am leaving my job, I am going into self employment. I need initial capital of around 5,000. I need to apply while I'm in my job I leave in a week.

raq1812

Going to found really stupid but here goes.

Thankyou for that link. The first one says 15 months 0% on transfers etc. Then it says make sure payments are made with 55 days. I'm confused to do I have 15 months without paying anything or do I still pay a monthly back every month?

As you can tell, I'm a noob. On a serious note its very important for me to get it right. Otherwise Il be like the advert on tv with ppl with debts who look like they want to end their life.

InsertWittyName

There will be a minimum payment that needs to be made each month towards the debt, it varies from company to company on what that amount is.

It's generally between 1% and 2.5% of the outstanding balance and is determined by the provider and whatever APR you get offered.

Hope this helps.

thenudeone

More info here http://www.moneysavingexpert.com/cards/best-0-credit-cards