cash from a credit card?

Refund_Queen

Hi,

Please can someone help! This is a bit of a minefield for me as I've never had a cc before. I need about £2000 to help buy a newer car. I dont really want to get a bank loan, i'd rather get a 0% CC that I can pay off over a year or two.

problem is, can I get a cc that would put cash into my bank account as I'd be buying the car from a private seller and not a trader/company.

Thanks for your help!!

skybluesaver

MBNA cards allow you to have money sent to your bank account. Virgin is also MBNA. They will usually charge a one off fee of around 3% but you then tend to find you will get between 12 & 15 months interest free.

Refund_Queen

Thanks for that. When you say a 3% fee, is that 3% of the total you want to borrow?

benf90

Refund_Queen wrote: »

Thanks for that. When you say a 3% fee, is that 3% of the total you want to borrow?

It'll be a % of whatever the amount you transfer.

Being able to process a balance transfer to a current account is sometimes called a 'super balance transfer'.

Egg and MBNA/Virgin allow this to be done. Virgin's offer is currently 0% for up to 15 months with a 2.98% fee. Egg's offer is up to 15 months 0% with a 3% fee.

When are you looking to buy the car though?

If you were to apply for an Egg card you would have to wait 7-10 working days for it to arrive and then another 7-10 working days for the BT amount to credit your bank account. I don't know exact timescales with Virgin but I presume it would take a couple of weeks at least.

lisyloo

I've done this before and it took about 3 weeks altogether.
Whether someone is prepared to wait that long depends on how desperately they need the money, how good your offer is, whether they have the space, what the demand is, whether they feel they can trust you etc.
We got a dealer to wait that long but we'd done business with them before (so they trusted us) and the car had been hanging around for a while (so low demand).

Of course you might be able to borrow the money off a family memeber for a few weeks, but then you have to consider what you are going to do if you get rejected for the cards, or you lose your job etc.

Nazitf

I've got a Virgin CC and they only allow you to transfer 95% of your credit limit into your bank account. Strangely this isn't mentioned in the terms and conditions but does appear in the leaflet accompanying the cheques.

Purple_Peril

The Virgin 0% for 15 months offer also applies to their CC cheques - so you could use one of these to pay the seller.

CannyJock

Purple_Peril wrote: »

The Virgin 0% for 15 months offer also applies to their CC cheques - so you could use one of these to pay the seller.

From what I've saw over a half-dozen people taking out the Virgin card, the cheques arrive a couple of weeks after your balance transfer has cleared into your current account.

If you want the money asap, when you phone their CS department to activate your card, ask them to do a balance transfer to your current account (or whatever account you have a cheque book for), and at the same time always remember to set up a direct debit to repay the minimum.

They'll charge you 2.98% as a fee, and as others have said you can transfer a maximum of 95% of your credit limit (i.e. transfer + 2.98% <= 95% of limit)

moonrakerz

Purple_Peril wrote: »

The Virgin 0% for 15 months offer also applies to their CC cheques - so you could use one of these to pay the seller.

Don't forget Section 75 of the CCA doesn't apply to CC cheques !

benf90

moonrakerz wrote: »

Don't forget Section 75 of the CCA doesn't apply to CC cheques !

It doesn't apply to balance transfers either. The OP is buying the car from a private seller remember, so whatever payment method they use they won't be protected.