How to pay a person with credit card

Gooner71_2

Hi all - some advice please.

I'm going to borrow a few grand cash from my mum to buy a car. In parallel, I'll apply for a 0% on purchase card.

Is there any way to pay my mum back using the card without withdrawing cash and therefore paying a fee?

Purple_Peril

Could you do her shopping on your card - rather than giving her the money and her spending it? I'm rather assuming here that you would be paying her back in installments rather than as a lump sum.

Gooner71_2

No I want to pay her the full amount using the credit card and then pay the card off in installments.

If any of the balance is left when the 0% offer expires I'll move the debt.

PandaPants_2

MBNA are doing an offer at the moment where you can transfer ££ into your current account and its 0% APR until next March (2009).

bengal-stripe

You can't! - Your mum is not likely to have a merchant account. Only merchants who are set up (and pay commission),
can accept payment by cards.

You might be able to utilze PayPal (which of course will take commission as well).

Mutton_Geoff

pay her the full amount using the credit card and then pay the card off in installments

If you're disciplined enough, I suggest a Virgin Money or MNBA card, that will let you BT straight into your current account, and from there, pay back your Mum. Then make your monthly payments into a high interest deposit account. Work out your payments to total and coincide with the end of the BT period, withdraw the money, pay off the balance and you've pocketed the interest on the amount you borrowed.

More info in the stooz area, but make sure you're disciplined enough not to be struggling to pay back the interest free card at the end of the period (either by savings or another card). Also make sure you don't use that card for anything else during the 0% period else you'll screw up the payment schedule.

Virgin will charge you 2.98% BT fee then your minimum payment of all the BT fee plus £25 in the first month, then £25 month then on. You can easily get 6-6.5% in savings accounts at the moment. Use an ISA if you haven't already, then it's also tax free (assuming you are UK tax payer). If the amount is greater than £3k, do a 2007-2008 ISA before end March then another first week April for 2008-2009 tax years.

Gooner71_2

Brilliant - thanks very much!

crazydebtman

u can use paypal or something similar but u wioll get charged along the way

Gooner71_2

If I use Virgin Money or MBNA will I get charged for the balance transfer into my Current Account?

maddog_uk

capital one issue cheque books against the card, you could give your mom the cheque to put in to her bank account.

King_Of_Fools

Gooner71 wrote: »

If I use Virgin Money or MBNA will I get charged for the balance transfer into my Current Account?

Yes, ~3% BT fee and then you will be charged at the applicable interest rate (maybe 0%).