Using a Credit Card to 'fund' an account

Discussion in 'Insurance & Finance' started by KillerHERTZ, Mar 25, 2014.

  1. KillerHERTZ

    KillerHERTZ Administrator Staff Member

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    Can you apply for a credit card and ask them to add X amount into your current account from the offset, for example, rather than take out a loan?

    Looking at the deals on loans agaist the current great deals on 0% credit cards I could make a large saving.
     
  2. Spinal

    Spinal Hardcore MB Enthusiast

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    What you're looking for is a balance transfer card, they'll either ask you for details of the account you want to transfer money to, or send you a check to pay in.
     
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  3. OP
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    KillerHERTZ

    KillerHERTZ Administrator Staff Member

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    I was under the impression can only be done from a card to another card, not to a current account - so im guessing it makes no difference (an account is an account)?
     
  4. Meldrew2

    Meldrew2 Hardcore MB Enthusiast

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    You'll need to take out a "cash advance" for which there will be a charge. The 0% deal may not apply to cash advances - check the T&C carefully.

    More efficient to use the credit card to pay for whatever you want the loan for.
     
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  5. m2287

    m2287 Hardcore MB Enthusiast

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    Natwest do sometimes offer a creditcard where you can transfer money to a natwest current account at 0% for a year.

    I did this to fund doing up my house.
     
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  6. Spinal

    Spinal Hardcore MB Enthusiast

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    I had an MBNA amex 0% balance transfer card which I used to pay off my student loan (which was with HSBC at the time); they send you a check, which you can pay into anything you want.

    I know natwest just ask for details of where to pay money to - this can be a current account from what I've seen...

    M.
     
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  7. st13phil

    st13phil MB Club Veteran

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    AFAIK, there are no credit cards currently available that don't class a drawdown to another account (aka "balance transfer") as a cash withdrawal. This means that while they may charge 0% interest for a period on the outstanding balance, there will invariably be a cash withdrawal fee in the region of 2% - 2.75%. This will possibly be cheaper than a personal loan, but not necessarily so.
     
  8. OP
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    KillerHERTZ

    KillerHERTZ Administrator Staff Member

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    Called 3 places, none of them would do it. :(

    Basically im buying a car from a private seller, wanted to do a bank transfer from my current account and pay for it with a Credit card as its alot cheaper (32months at 0%) than a loan.

    Or am I being really thick, can you send a bank transfer from a credit card? :dk:
     
    Last edited: Mar 25, 2014
  9. moonloops

    moonloops Hardcore MB Enthusiast

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    MBNA credit card allows you to transfer to bank account - and charge 4% for doing so,
     
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  10. Spinal

    Spinal Hardcore MB Enthusiast

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  11. OP
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    KillerHERTZ

    KillerHERTZ Administrator Staff Member

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    Cheers, went with MBNA who seem to be the only ones who still do 'cash' transfers!

    Thanks for your help
     
  12. m2287

    m2287 Hardcore MB Enthusiast

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    AMG on it's way?
     
  13. OP
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    KillerHERTZ

    KillerHERTZ Administrator Staff Member

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    Couldn't possibly say ;)
     
  14. PenelopePitstop

    PenelopePitstop Hardcore MB Enthusiast

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    MBNA cards are very good for balance transfers to bank accounts and offer constant 0% promotions.
     

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