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Is this a silly idea, credit card money transfer

(16 Posts)
Boynamedsue Fri 23-Jun-17 19:04:50

We need a new car. I've got savings which could pay for the car but they're currently in a share scheme that is doing very well and predicted to do even better going forward. I can sell them at any time but I'd rather not at the moment.

My credit card has an offer on at the moment of a 0% cash transfer for 18 months. There is a fee, 1.9% but otherwise it's interest free. The card currently had a zero balance. So I'm thinking of just transferring what I need for the car (nothing wildly expensive, about 5k) and using this to buy the car. I'll then set up a direct debit so it'll be cleared at the end of the 18 months.

It seems really simple and sensible to me but I've a habit of thinking that about things and then realising (too late!) that I'd missed a vital point. So sorry if I'm being really thick!

mintbiscuit Fri 23-Jun-17 19:14:44

I've done this for significant spends e.g. new boiler. Have paid back via dd within timeframe and haven't had issue yet.

iamreginaphalange Fri 23-Jun-17 19:19:10

Done this myself... as long as you keep up with repayments - and pay more each month if you can afford it.. and in 18 months without interest... win win!
Enjoy your new motor x

triangularchocolate Fri 23-Jun-17 19:20:09

Can't see a problem if you're happy to pay the fee but might be cheaper to get a new credit card with 0% on purchases and save the fee - assuming you're buying a car from somewhere that accepts credit cards?

Boynamedsue Fri 23-Jun-17 19:20:49

Thank you, it seemed a bit too good to be true!

Boynamedsue Fri 23-Jun-17 19:21:24

That's a good point triangular, I'll look into that too.

forgottenusername Fri 23-Jun-17 19:31:10

I bought my car on a 0% credit card, there was a fee from the dealer, but it was less than the balance transfer fee, so made sense smile

Jellybean85 Fri 23-Jun-17 19:45:01

I've done this too!! As long as you pay back in interest free period it's great. Basically paid for some new double glazed windows interest free grin

Its nice knowing as well that if you need to take a break from monthly payments you can (unlike finance) and can just
Pay the minimum and either pay a bit of interest or do a balance transfer

Sgtmajormummy Fri 23-Jun-17 19:49:03

Apart from the annual fixed fee our credit cards are free to use if paid off in full on 15th of the following month so realistically they give us between 15 and 45 days' free money.
In times of short term cash flow problems we have put decreasing monthly amounts on the cards until we were back to normal.

Absolutely fine OP as long as you're clear what you're doing... BUT we've all heard the stories of spiralling debt due to pure bad luck.

Boynamedsue Fri 23-Jun-17 20:23:37

I kept seeing adverts for car finance at 7 or 8% so I thought I must he missing something but I guess not everyone gets the same offers on cards and some people pay ££££s for cars so maybe would be outside Cc limits (I'm not a car person so something cheap and reliable that I can fit the dog in will do fine for me!)

TupperwareTat Fri 23-Jun-17 22:00:10

They dont always let you transfer the whole amount. Log in online & it should be under current offers.

A 0% card on purchases for 28 months were available recently.

SheRaaarghPrincessOfPower Fri 23-Jun-17 22:05:30

I always do this. Lloyds has a 30 month interest free period recently!

Noeuf Fri 23-Jun-17 22:13:18

Ohhhh really timely I have 9500 available to transfer and my car just died. Really want a Dacia so planning this. Thanks for asking op!

TinselTwins Sun 25-Jun-17 23:42:26

So long as you are sensible and not the type to dip into the CC again before it's paid off, credit cards on 0% are the best kinda debt because there's no charge for overpaying or paying it off early, but likewise if you have a tight month you can drop back to minimum payment. If you can trust yourself to stick to the repayments its basically a free loan!

There is no catch! they make their money from people who aren't sensible and don't pay it off before the 0% rate ends.

TinselTwins Sun 25-Jun-17 23:43:47

Also from people who miss a payment (then your 0% deal ends early!)

If you're paying on time, no catch! the catch is that some people shouldn't trust themselves to use these cards. If you can trust yourself, go for it!

Notreallyhappy Mon 26-Jun-17 14:34:54

Put any payment plan with your cc on standing order not DD the cc company can mess with a dd but not your so. You can upgrade the payment when ever you've a bit more spare.

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