Can I get a free loan this way?

anotherbob

I'm a stranger to creative credit card use
If I use my present credit card (on which I owe nothing just now) to pay the balance of a car purchase (about £2000 on top of my PX) can I just transfer that £2000 debt to an interest free card and get a free loan if I pay off the debt in the time allowed?
Sorry if this is a dumb question but it seems too simple.

Tixy

When you do the transfer from 1 card to a new one there will be a balance transfer fee (usually anything from 2% to 4% of the balance transferred) so it won't be entirely free, but it could be cheap.

You might need to check with your car dealer that they don't charge for paying by credit card (some charge a surcharge of around 2%).

Obviously it would also be dependant on you being able to get a new 0% balance transfer credit card with a sufficient limit- and being able to repay in full by the time the 0% promo ends.

anotherbob

Thank you Tixy.
Could I avoid paying the dealer any surchage if I just used my exisiting card to get £2000 out and pay the balance to the dealer in cash?

hermante

anotherbob wrote: »

Thank you Tixy.
Could I avoid paying the dealer any surchage if I just used my exisiting card to get £2000 out and pay the balance to the dealer in cash?

Credit cards charge you to withdraw cash, and you will begin paying the interest rate immediately.

anotherbob

Thank you hermante.
Now I can work out the cheapest way of doing things.