Credit card finance transfer

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Hi got a car on finance which I'm trying to find a easier way out off. Bad mistake I know. However I'm in £4000 negative equity, I don't currently have the funds to pay this off in one lump sum, I will have it in about 6-9months.

If I sell the car pay what I get for it can I put this £4000 on a interest free credit card for up to a year and pay it off either monthly or at the end of the year? Is there any frees, I'm confused since I have never used a credit card.

I appreciate most people will think this is a horrible idea but I would just like to know how it would work.

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  • geekonthepc
    geekonthepc Posts: 152 Forumite
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    blackpoolc wrote: »
    Hi got a car on finance which I'm trying to find a easier way out off. Bad mistake I know. However I'm in £4000 negative equity, I don't currently have the funds to pay this off in one lump sum, I will have it in about 6-9months.

    If I sell the car pay what I get for it can I put this £4000 on a interest free credit card for up to a year and pay it off either monthly or at the end of the year? Is there any frees, I'm confused since I have never used a credit card.

    I appreciate most people will think this is a horrible idea but I would just like to know how it would work.

    You could get a card that has interest free on purchases and this would allow you to pay the £4000 off gradually through the year without paying interest.

    However, you have two problems:
    1. Getting a card with a £4000 limit
    2. Getting 12 months or more interest free on purchases

    Getting both of these together will depend on your credit history. If your credit history in the last 6 years is pretty solid (no late payments, defaults, etc) you should be OK. You'll also need to have a fairly high income for any provider to get a £4000 limit. Might be worth getting a credit report before you apply to check everything is in shape.

    See here for some of the best deals together with some key information.
  • blackpoolc
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    I've never missed a payment for anything but I think I may struggle since I'm only 21. Do you think it's even worth applying for ?
  • geekonthepc
    geekonthepc Posts: 152 Forumite
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    If I were you I'd get a credit report (free from Noddle) and check what your history looks like. You'd need to have a fairly detailed history (a few credit agreements - past or present) that are being paid and kept to their terms.

    Your income would also need to be fairly high and consistent. Do you mind telling us what an estimate of your income is?

    Your age will be a negative factor on the application, but if your history is good and income is strong it won't really cause too many problems.
  • blackpoolc
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    I did look at my report a few months ago which wasn't great because of my outgoings to earnings.

    As for things I'm paying:
    Rent
    British Gas
    Virgin
    Orange
    Car Finance (Can't think of any more, never missed payments on any of these)

    Income is currently just over £18000, raising to £22000 in august. This is why I was looking at doing this because I would have lots of spare cash from august. Maybe a better idea would be just keep this car for one year and plow all my extra money into it.
  • geekonthepc
    geekonthepc Posts: 152 Forumite
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    blackpoolc wrote: »
    I did look at my report a few months ago which wasn't great because of my outgoings to earnings.

    As for things I'm paying:
    Rent
    British Gas
    Virgin
    Orange
    Car Finance (Can't think of any more, never missed payments on any of these)

    Income is currently just over £18000, raising to £22000 in august. This is why I was looking at doing this because I would have lots of spare cash from august. Maybe a better idea would be just keep this car for one year and plow all my extra money into it.

    Perhaps. See how you go - you can use MSE's preapplication checkers to tell you how likely you are to be accepted for some cards and this won't hurt your credit rating - however they won't give any indication as to what limit you are likely to get.
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