Advice needed please!!

If anyone likes a challenge please feel free to advise:

Here's the idea but need some intelligent folk to help me get my head round what to do and how to do it!! :confused:

We have purchased a car for £9k on a hire purchase deal at 0% for 12 months therefore making the payments about £750 per month. We have the money to buy the car outright but wanted to leave it in ISA's earning interest and use someone else's money to finance the car.

Now the idea we've had is to do a 0% BT deal for the car (possibly up to £9k), put BT money in bank account and then make the hire purchase payments from BT money, efectively not even using our savings to pay the hire purchase.

Then once hire purchase is finished maybe do another BT deal and pay the money off the credit card over that deal, that way leaving our money in savings for a lot longer and making more interest.

Is this possible/feasable to do/worth doing?
Thanks
:heart2: Charlie born Aug 2007 :heart2: Reece born May 2009
:heart2:Toby born Apr and taken by SMA Dec 2012
:heart2: Baby boy failed M/C @ 20 wks Oct 2013 :heart2: Sienna born Oct 2014

Replies

  • BokkensBokkens Forumite
    505 Posts
    Yes to all of the above.
    You will need a MULE card(MNBA,Virgin,Alliance & Leicester,MINT, Lloyds or Egg) as these allow you to BT money from your credit card into a bank account.You can do this over the phone or they will send you a cheque which you write to yourself and the cash goes into your bank account and the debt appears on your credit card.
    There is normally a 3% fee for this some of these cards have uncapped fees so watch out as it could be £270 just to move your money, so look for a capped fee.
    You may have to apply for two or even three cards to get the 9K limit at 0%.
    The card companies restrict the limits while the 0% period is running and raise the limits after the period ends.
    You will only need one MULE card to rotate your funds through any other card should have a long 0% period as possible ie.12months+.
    Previously known as Bokken,registered at MSE in Nov 04,computer glich deleted my access but it is fun building up my stars from scratch,again.:D
  • I have an egg credit card, I tried applying for egg money and they turned me down for some reason. Am I able to do a BT to the egg card to put it in a positive balanace and then move that into my savings like with egg money? I've just recieved Barclaycard with a 2k limit. I want to put that 2k into my isa to reach my allowance for the year. Any advice would be appreciated.
  • thanks Bokkens. Do you know if any of the Lloyds TSB cards will act as a mule? Only cos I already have one so it'll save another application!
    :heart2: Charlie born Aug 2007 :heart2: Reece born May 2009
    :heart2:Toby born Apr and taken by SMA Dec 2012
    :heart2: Baby boy failed M/C @ 20 wks Oct 2013 :heart2: Sienna born Oct 2014
  • BokkensBokkens Forumite
    505 Posts
    thanks Bokkens. Do you know if any of the Lloyds TSB cards will act as a mule? Only cos I already have one so it'll save another application!
    Ours is a Lloyds platinium card and they keep sending me cheques to BT on to it.
    Give customer services a ring and ask them if they will provide cheques for a BT on your card.
    Previously known as Bokken,registered at MSE in Nov 04,computer glich deleted my access but it is fun building up my stars from scratch,again.:D
  • Mine is a Platinium one as well I think, will call them and find out. Do you know if there would there be a fee for the cheque as part of the BT? So if I were to do that I would take the money via cheque from Lloyds and then BT the cheque amount onto a 0% credit card? am I understanding that right?
    :heart2: Charlie born Aug 2007 :heart2: Reece born May 2009
    :heart2:Toby born Apr and taken by SMA Dec 2012
    :heart2: Baby boy failed M/C @ 20 wks Oct 2013 :heart2: Sienna born Oct 2014
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