Buying a car with money transfer credit card
Discussion
I'm trying to work out the best and cheapest way to buy a Car which will be from a dealer. The car in question is £25k I have a an excellent credit rating and have been pre approved for a few loans with an intrest of 6.2%.
But I'm wondering if I can use a credit card that transfers money into my bank account to buy the car.
Again I have been pre approved and it has an interest free period of 14 months .. then 24.9%! Obviously my plan before the intrest period ends would be to transfer the debt to another intrest free card and so on until I pay it off (Planning 3 years)
Am I missing something ? Can this be done this way ? Or shall I continue to use a personal loan and just accept the extra I will pay in intrest ?
But I'm wondering if I can use a credit card that transfers money into my bank account to buy the car.
Again I have been pre approved and it has an interest free period of 14 months .. then 24.9%! Obviously my plan before the intrest period ends would be to transfer the debt to another intrest free card and so on until I pay it off (Planning 3 years)
Am I missing something ? Can this be done this way ? Or shall I continue to use a personal loan and just accept the extra I will pay in intrest ?
I have been doing balance transfers and money transfers for years.
Money transfers deals are rarer than balance transfers.
If you get one use it.
Money transfer deals usually restrict you on how much you can transfer. Ie say you get £10k card limit. I have found Balance transfer limit would be £9500 of the card limit.
Money Transfer might be as low as £8500 or less of the card limit.
If you can get £25k in money transfer I would do it all.
If not do as much as possible money transfer and the rest loan.
Make sure you keep your credit score tip top and start looking around and balance transfer deals in 10-11 months time and plan on getting a good balance transfer deal.
Worst case scenario with the money transfer deal is in 14 months time you can’t balance transfer it all. Transfer what you can and take a loan out at that point and cover the rest.
Just my thoughts.
I have £37k all on 0%. My credit score isn’t the best but just secured £10k balance transfer with NatWest 12 months at 0% with 0% transfer fee. Always some deals out there.
Have to be on top of it. It’s a balancing act.
Absolute worst case scenario you sell the car in a years time.
Money transfers deals are rarer than balance transfers.
If you get one use it.
Money transfer deals usually restrict you on how much you can transfer. Ie say you get £10k card limit. I have found Balance transfer limit would be £9500 of the card limit.
Money Transfer might be as low as £8500 or less of the card limit.
If you can get £25k in money transfer I would do it all.
If not do as much as possible money transfer and the rest loan.
Make sure you keep your credit score tip top and start looking around and balance transfer deals in 10-11 months time and plan on getting a good balance transfer deal.
Worst case scenario with the money transfer deal is in 14 months time you can’t balance transfer it all. Transfer what you can and take a loan out at that point and cover the rest.
Just my thoughts.
I have £37k all on 0%. My credit score isn’t the best but just secured £10k balance transfer with NatWest 12 months at 0% with 0% transfer fee. Always some deals out there.
Have to be on top of it. It’s a balancing act.
Absolute worst case scenario you sell the car in a years time.
Saf89 said:
Thanks a good insight and advice appreciated,
Is there anyway of knowing what the minimum monthly repayment would be set at? If its more than a personal loan per month I may aswel get the loan despite paying back interest
Usually says in T+Cs. Most seem to be 1-2% of how much you borrow would be the minimum. Is there anyway of knowing what the minimum monthly repayment would be set at? If its more than a personal loan per month I may aswel get the loan despite paying back interest
Edited by Saf89 on Wednesday 23 April 14:25
3 things
1) with conditional loan you get voluntary termination rights, with cc no
2) with loan repayment plan the principle reduces over time. Technically your interest rare applies to half the borrowed amount over term. If you dont pay off cc over same term you might end up paying more
3) car debt might be more acceptsble by lender for mortgages
1) with conditional loan you get voluntary termination rights, with cc no
2) with loan repayment plan the principle reduces over time. Technically your interest rare applies to half the borrowed amount over term. If you dont pay off cc over same term you might end up paying more
3) car debt might be more acceptsble by lender for mortgages
They have a fee yes which will be at least 3% I imagine.
Come the end of the 0% APR transfer offer (in 12/18 months) you are going to need to get another card with a limit high enough to transfer it onto - this is a risk.
If you are going to get a loan to pay off the CC at some point you may as well just get the loan now and save the hassle
Come the end of the 0% APR transfer offer (in 12/18 months) you are going to need to get another card with a limit high enough to transfer it onto - this is a risk.
If you are going to get a loan to pay off the CC at some point you may as well just get the loan now and save the hassle
I've done this a few times, but for £5-£6k, not £25k.
There is a small fee but that is much less than the interest over 2 years. I have once done a balance transfer of a balance transfer, but it's a) nearly free money and b) more flexible payment so I can pay £500 this month and maybe only £300 next month because I'd rather spend the difference on my wife's birthday dinner.
Have to be strict not to spend on that card after though, because that transaction will sit on top of your balance transfer occurring interest as it gets paid off last.
I've also never maxed out my credit limits, I've access to £21k over my cards but never been above £6k.
There is a small fee but that is much less than the interest over 2 years. I have once done a balance transfer of a balance transfer, but it's a) nearly free money and b) more flexible payment so I can pay £500 this month and maybe only £300 next month because I'd rather spend the difference on my wife's birthday dinner.
Have to be strict not to spend on that card after though, because that transaction will sit on top of your balance transfer occurring interest as it gets paid off last.
I've also never maxed out my credit limits, I've access to £21k over my cards but never been above £6k.
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