Paying a paypal 'gift' with interest free credit card.

afcj

Evening all,

I've recently been accepted for a Tesco Credit Card with 19 months interest free on purchases. I intended to use this for buying a car and paying it off gradually over 19 months, however I've ended up paying cash for a car from a private seller.

I am now looking to see if it's possible to somehow move 3K from the credit card to my current account and pay it off as originally intended.

I was thinking of setting up a paypal account and linking my credit card with the account, sending x amount to my partners paypal account and then withdrawing it from her account into my current account.

Is there any reason why this is a bad idea / won't work? I understand there is a 1.4% fee for paying a 'gift' by credit card. This isn't a problem as the original purchase wasn't a huge
amount.

If this isn't recommended, other alternatives are welcome!

Thanks.

rehanmalik3030

afcj wrote: »

Evening all,

I've recently been accepted for a Tesco Credit Card with 19 months interest free on purchases. I intended to use this for buying a car and paying it off gradually over 19 months, however I've ended up paying cash for a car from a private seller.

I am now looking to see if it's possible to somehow move 3K from the credit card to my current account and pay it off as originally intended.

I was thinking of setting up a paypal account and linking my credit card with the account, sending x amount to my partners paypal account and then withdrawing it from her account into my current account.

Is there any reason why this is a bad idea / won't work? I understand there is a 1.4% fee for paying a 'gift' by credit card. This isn't a problem as the original purchase wasn't a huge
amount.

If this isn't recommended, other alternatives are welcome!

Thanks.

Your best action is to check with your credit card company before you do anything. It may be treated as a cash advance like sending money via Western Union since you are not purchasing a product or a service.

YorkshireBoy

What's the credit limit on the card?

afcj

Thanks both.

It's got a credit limit of £5100, however the value I want to transfer is barely half of that.

YorkshireBoy

You can buy Sterling travellers cheques from Tesco Travel Money and pay them into your bank account. There's a 1.25% fee. However, you'll almost certainly be limited to 50% of your credit limit (so £2,550). The transaction will qualify as a purchase, so 0% for 19 months.

See your T&Cs and the information on the Tesco Bank website travel money section.

IMPORTANT: Ensure your bank will accept them (and without charge) before purchasing.

afcj

Thanks for your help YorkshireBoy, however I've just checked and it seems only Natwest ( who I no longer bank with ) accept them nowadays and charge a commission fee on top.

YorkshireBoy

afcj wrote: »

Thanks for your help YorkshireBoy, however I've just checked and it seems only Natwest ( who I no longer bank with ) accept them nowadays and charge a commission fee on top.

I've previously paid TCs bought from M&S Money* into Lloyds and Nationwide. Have they stopped accepting them?

* Lower fee (at 1%), but they no longer do them!

afcj

Nationwide would be ideal for me as its my main account! However a quick Google search did show results that they don't accept them. I have sent them an email though just to double check that as it sounds like the easiest / cheapest option by far! I will post back the outcome.

dazza.mk

If you do it and Paypal notice (which is possible if you share similar details - use same PC to log onto Paypal etc.) you are likely to get an email from them along the lines of "don't do it again" or we'll close your account.

If it is new paypal accounts you also run the slight risk of them putting a hold on the account whilst they check for fraud, which means the payment will be sitting on your girlfriend's account and you'll be unable to access it for a period of time.

lhead123

Could you not just use the card for a few months on every day purchases that you would have used your current account for up to the value of the car? and then slowly pay it off as planned? x