Is a 0% card ok for this type of payment

sirbazza

I recently did a voluntary termination on a car I had on hp. While this was not an issue I have some outstanding liabilities on it, damage charges and arrears from taking payment holidays, what I would like to know is if I can pay these charges with a 0% card, would it be classes as a purchase, my only other option is to let it go to debt collection agency and set up a Payment plan which would incur interest which I don't want to do.

[Deleted User]

You'll need to ask if they'll accept a card.  I would suspect not, and that it would be a cash transactions if they did.

But instead of letting it go to a DCA, why not transfer the money via money transfer card, if your credit is good enough? Seems a better option.

sirbazza

Thanks for your reply, according to the letter they will accept credit card payments, as you say it would be a cash transaction does that mean it would not be classed as a purchase to get the 0% rate.

You mention a money transfer card, how does this work and wouldn't there be interest on this or is this the same as a balance transfer card which I may be able to get with 0% on transfers, if they are the same I still would not know how to do this.

p3ncilsharpener

sirbazza said:

Thanks for your reply, according to the letter they will accept credit card payments, as you say it would be a cash transaction does that mean it would not be classed as a purchase to get the 0% rate.

You mention a money transfer card, how does this work and wouldn't there be interest on this or is this the same as a balance transfer card which I may be able to get with 0% on transfers, if they are the same I still would not know how to do this.

A money transfer card is the same as a balance transfer card, the money is just transferred to your bank account instead of  to a credit card account.

sirbazza

Thanks for the info didn't know you could transfer money to your own account with these cards, if I was to do it this way with a 0% on balance transfers card and transfer the money to my bank account would this still be eligible for the 0% balance transfer rate.

JamesPeter

sirbazza said:

Thanks for the info didn't know you could transfer money to your own account with these cards, if I was to do it this way with a 0% on balance transfers card and transfer the money to my bank account would this still be eligible for the 0% balance transfer rate.

You don't want a 'Balance Transfer' card (as that is for transferring a balance directly from one credit card to another credit card).

What you would need to transfer money from a Credit Card to a Bank Account is a 'Money Transfer' card. An example here from Virgin Money (others do exist):

https://uk.virginmoney.com/cards/products/money-transfer-cards

Some do have 0% offers but you pay a percentage fee.