Balance transfer, or money transfer?

binmanlegend

I’m coming to the end of a pcp contract (with VW finance), which I’ve gone over on the mileage allowance significantly. I’m planning on buying the car at the end of the term, which is due to finish in about 5 months.

I have a balance transfer offer on a Barclaycard which has a 2.4% upfront fee and 0% interest until sometime around mid 2020. However, I don’t have any money transfer offers.

Does anyone know whether paying off VW finance (EDIT: using a transfer, rather than card payment over the phone) would be a balance, or money, transfer?

I’ve twice tried phoning Barclaycard up, but the callcenter staff didn’t really understand what I was asking and instead were just trying to set up the transfer. My only other option is to just try my luck and see if it goes through - not exactly savvy financial planning!

maxximus75

A balance transfer is only useful to to pay off other credit cards.


The only real option you have is for a money transfer card. Maybe look at Virgin or MBNA?

binmanlegend

So paying off a pcp is a money transfer? !!!!!!.

Craig1981

to pay off a pcp you will need the cash in your bank to make a debit card payment. using a credit card will also be classed as a purchase (and some companies may see this as a cash transaction as well)

the best way is do to a money transfer (requesting an amount from your credit card to your bank account, at a nominal fee and preferably a 0% fixed term) and then using that cash in your bank to pay the pcp

binmanlegend

Ok thanks.

I think my confusion is that VW finance will not take a payment, only a transfer. So knowing that it’s a transfer and not a payment, I wasn’t sure if that was money or balance. Given that credit card debt is counted as balance, I was hoping car finance debt would be treated the same. But I guess it’s equally likely it’s treated as overdraft debt.

PRAISETHESUN

Balance transfers are only used to transfer debt between credit cards - you cannot use them to pay off any other sorts of loans/debt/finance. You will need either a money transfer card to transfer cash to your current account which you can then transfer to your loan provider, or a purchase card if they accept credit card payment for the loan (although from reading your posts above it sounds like this is not the case).

binmanlegend

PRAISETHESUN wrote: »

Balance transfers are only used to transfer debt between credit cards - you cannot use them to pay off any other sorts of loans/debt/finance. You will need either a money transfer card to transfer cash to your current account which you can then transfer to your loan provider, or a purchase card if they accept credit card payment for the loan (although from reading your posts above it sounds like this is not the case).

!!!!!!, thanks also for confirming.

I think they will take a payment, but they push hard for final settlements to be settled via transfer - which is where I thought I may have spotted an opportunity to use my BT offer. Ahh well!

jpwjpw

Do you have another card with enough of a credit limit? You could use that card to make the payment and then transfer it to your Barclaycard.

maxximus75

binmanlegend wrote: »

Ok thanks.

I think my confusion is that VW finance will not take a payment, only a transfer. So knowing that it’s a transfer and not a payment, I wasn’t sure if that was money or balance. Given that credit card debt is counted as balance, I was hoping car finance debt would be treated the same. But I guess it’s equally likely it’s treated as overdraft debt.

When VW finance state transfer to pay it off what they mean is that a bank transfer from your current account..... not a balance tranfer from a credit card.