Credit Card Cheques

mgarl10024

Hi,

I've got to tax the car, and working it out, it is better to use my Cap One credit card and get the 1% cashback and the remainder of my 0% period, and take the hit with the £2.50 fee that the DVLA puts on Credit Card transactions.

Then, I note that the DVLA accepts cheques, and that Cap One offer Credit Card cheques. Can I send a Cap One Credit Card cheque to the DVLA, bagging the cashback and 0% period, and circumventing the £2.50 fee? And do cheques count as purchases, or cash (which may not be included in the 0% deal)?

Thanks,

Tixy

Check what rate the credit card cheques would be charged at. They often don't qualify for promotional 0% offers.
Capital one's website is exceptionally vague

Credit card cheques can be charged at purchase, balance transfer or cash withdrawal rate.

[Deleted User]

Cheques invariably count as cash, so the worst of all worlds - a fee, immediate charging of interest, no cashback, and a dodgy credit report.

Use the card (or a debit card to avoid the fee).

udydudy

IMHO check with cap one or on the cheques itself, if you have them already. Halifax used to send cheques which were same as the BT offer so it was 3% fee and 0% for 12 months(the offer i had at that point in time on BTs) or 4.94% for life with 3% Fee(which I obviously used at that point in time)

mgarl10024

Hi Tixy, zx81, and udydudy,

Thanks for the very fast responses.

Hm... the 'handling fee', if there is one, could kill this off tbh, even if the cheque is counted as purchases.

The tax is £130.
So, 1% cashback on £130+£2.50 fee is £1.33.
Pop the £130 in a savings account at 2.8% for 9mths of my 0% deal gives me £2.18 after 20% tax.
So, I'm £1.33+£2.18-£2.50fee up = £1.01 up.

I'll see what the cheques are like when they come through.
If the cheques are 0% handling and count as purchases towards my 0% period, then we're on.
However, if I use them I'd get £1.30 cashback (no fee), and the same £2.18, so I'd be £3.48 up.
So, if my maths is right, the cheques could effectively cost me £2.47 or 1.9%. If they have anything above that (and most I read are ~3%) then the cheques are dead in the water and I'll just use the CC and plan my retirement on my £1.01.

Thanks again,

Buzby

The cheques are treated as cash advances, and should be destroyed on receipt.

chattychappy

Deleted_User wrote: »

and a dodgy credit report.

I wouldn't agree with this part. Yes, cash advances are usually logged, and they could only be negative. But I'm certain this is only mildly the case and a one-off would have little or no impact. I'm getting cash advances weekly as it is the cheapest way I can get foreign currency. I've really had no problems.

Buzby wrote: »

The cheques are treated as cash advances, and should be destroyed on receipt.

No.

On receipt you see if there is a promotion and how the particular cheques will be charged. If there is no deal and at standard charges you think they are unlikely to be of any value, then destroy them to reduce risk of lost/stolen.

I have had promotional cheques with all kinds of deals attached - some good, some bad. Typically mirroring BT type deals.

mgarl10024

Thanks for all the further advice. It's been a really useful thread where I've learned a lot about credit card cheques.

Response from Capital One (in case it is useful to someone):

Thank you for your message.

Unfortunately, we are not currently sending cheques to customers. If you still have any existing credit card cheques you may continue to use them.

I'm sorry for any inconvenience that this may cause you.

If you have any other queries, please send us a further secure message.

Looks like I'll just pay for it on my CC and bag my quid.

Thanks again,

chattychappy

I was going to say - I did think they were being phased out.