Transferring cash into current account

bbanduser

Hi,
I need to get my hands on about £12K for a few days, but I don't want to show up on a credit check (I want to pay for my stamp duty on a house purchase, as money from family will take a few weeks to filter through, and I don't want the mortgage company's credit check on the day of completion to find this out) - will transferring cash to a current account be a problem in this? I will do it 5-7 days before the completion, and will soon clear it out, anyone see any problem with this strategy? Got some 0% long term deals I can access.

Mortgage offer has already been made BTW.

Gromitt

You have 30 days from the date of execution to pay your stamp duty, so you could pay it after the credit check if you wish.

I don't know why you are worried about payments into your account being noticed though?

bbanduser

Thanks for the reply Gromitt.
Since I will have a mortgage, the solicitor will want to have all monies available before completion. If I was a cash buyer, then i could have done what you are suggesting, paying the stamp duty later on. I will ask for the Stamp Duty to be deferred, but not sure if it will be accepted.

I am worried about the increase in balance on my credit card showing up, as sometimes Mortgage companies do a credit check just before releasing funds.

Gromitt

bbanduser wrote: »

I am worried about the increase in balance on my credit card showing up, as sometimes Mortgage companies do a credit check just before releasing funds.

Indeed, sometimes they do, but also, expenditure on a credit card is only shown to CRAs after they have produced a statement, so unless your credit card is the same bank as the mortgage, they are not going to notice until your statement has been prepared. They may notice any additional credit checks made, but you are always told in advance of these.

The other thing is how much you are borrowing - 12K stamp duty would mean a £400K house purchase so if you have a 95% mortgage on that, they may get itchy feed about another 12K loan, but if you have a much bigger deposit, they are less likely to care.

bbanduser

You are right, the mortgage is well above £400, and we have a 15% deposit.
I was also thinking I should stay clear of cards belonging to the same group as the Mortgage Company, just to avoid them finding out. We are responsible anyway, so won't do stupid things with our finances.

Its a little bit silly anyway, as I am sure they will offer me a loan straight away, as long as it is on their terms, its alright!

bbanduser

My bank has also offered me a loan. If it is pre-approved, will it show up on my credit report straight away? Do banks always do credit checks and does it always show up on credit reports straight away?

Pugsley_03

An obvious point maybe but thought it was worth pointing out...

Just because its a 0% interest card it doesn't mean that you wont be charged a fee for transferring cash, what card are you planning on using? Make sure you don't end up with a 3%+ charge on the transfer to your bank account.

Tixy

I don't think it would show on your credit files that quickly for a credit card.
For a loan the search would be visible, a new loan account typically takes around a month to appear as a new credit account.

However on completion I think you will be asked if there have been any material changes to your financial circumstances/debts etc, and so you would presumably need to declare this whether by credit card or loan to the mortgage company at that time?

Might be worth asking the question on the mortgages section of the forum where some brokers regularly post just to check rather than risk the mortage offer being pulled.

grandplonker

You have a few options for getting cash out of a credit card. Retailers generally will not allow a debit card purchase and refund to credit card which would work in theory.

You can also buy something on ebay on credit card, auction it again and withdraw the purchase money to your bank. You'll need to know the product value excellently, it will take a few weeks and some stuff (Apple Macs, for example) run the risk of frauds.

WillyWonga

There is a way to avoid credit card cash advance charges and their associated increased interest rates - good way if you are short of £50 or need a large sum transferred.

You need 2 paypal accounts which is very easily done. 1 paypal account needs to have a bank account linked to it for withdrawal. Connect your credit card to Paypal "A" and make a payment to Paypal "B" using your card. Chose to pay the fees at the prompt which are a lot less than what the bank would charge if you withdrew cash from the machine. The money arrives in Paypal "B" then go into that account and withdraw the amount to the bank account. As far as the credit card company knows it shows up as a purchase and not a cash advance so doesn't attract fees or increased interest rates. Plus if you get a 0% purchase fee for a set period even better.

CherlokHomes

WillyWonga wrote: »

There is a way to avoid credit card cash advance charges and their associated increased interest rates - good way if you are short of £50 or need a large sum transferred.

You need 2 paypal accounts which is very easily done. 1 paypal account needs to have a bank account linked to it for withdrawal. Connect your credit card to Paypal "A" and make a payment to Paypal "B" using your card. Chose to pay the fees at the prompt which are a lot less than what the bank would charge if you withdrew cash from the machine. The money arrives in Paypal "B" then go into that account and withdraw the amount to the bank account. As far as the credit card company knows it shows up as a purchase and not a cash advance so doesn't attract fees or increased interest rates. Plus if you get a 0% purchase fee for a set period even better.

Granted this is the best way to lose your Paypal account, under the agreement t this is a cash advance.