0% interest Credit Card

Bes

Bes

Bes

Soldato
Joined
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Posts
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Melbourne
So I was chatting with a mate last night who wants to borrow some money for a few months cheaply to pay off a mega high- rate credit card and a few other things.

Say you had a credit card offering 0% on purchases for 9 months or whatever.... What is to stop you from opening a Google Checkout account, and placing an 'order' on your card for the entire balance, then transferring this money into your account as cash? (You also avoid any balance transfer fee).

This gets around the credit card's cash withdrawal fee, and the rule that 0% interest is only available on purchases.

Has anyone ever tried this?
 
You'd get charged a percentage on the fee from your Google account of course, but other then that I can't - at the moment - see anything too wrong with that.

I can't help thinking it will have been though of though..
 
are they 0% intrest for cash withdrawal? because i imagine they treat paypal and google checkout etc as that rather than a purchase
 
arknor said:
are they 0% intrest for cash withdrawal? because i imagine they treat paypal and google checkout etc as that rather than a purchase
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Do they?

Most cards are not 0% cash withdrawal AFAIK (Not really looked into it, as just something we were discussing last night).
 
mac1st3 said:
but you'll still have to pay it back, and you're just trading plastic for paper, so where would the point be?
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You're missing the point. The problem is a credit card which say has £1k that needs paying off, with a high interest rate. The op is suggesting getting a 0% card, using google checkout to take £1k off it, and paying off the other high interest card with that money. Now he still owes £1k, but can pay it off over 9 months interest free.
 
Because IIRC normally there is quite a fee attached to this- like 5% of the balance or something.... Like I said, not done mega- detailed research, was just discussing it last night.

Also with the remaining balance, he can pay down his overdraft, (Just a couple of hundred pounds), and put his account back in the positive.
 
Teknobry said:
You're missing the point. The problem is a credit card which say has £1k that needs paying off, with a high interest rate. The op is suggesting getting a 0% card, using google checkout to take £1k off it, and paying off the other high interest card with that money. Now he still owes £1k, but can pay it off over 9 months interest free.
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Or just get another credit card that does 0% balance transfers and swallow the fee.

Or get a CC that lets you transfer money to your current account at 0% and use that to pay it off.

Either way you're going to get a fee. You might be able to earn some kind of reward points using the google checkout method mind. Maybe.
 
You can transfer money from virgin credit card to bank account. Not sure if there was a fee tho. It didn't come up as cash advance so that interest wouldnt be added. I wasnt really listening to the fella on the phone as wasnt interested.
 
Teknobry said:
You're missing the point. The problem is a credit card which say has £1k that needs paying off, with a high interest rate. The op is suggesting getting a 0% card, using google checkout to take £1k off it, and paying off the other high interest card with that money. Now he still owes £1k, but can pay it off over 9 months interest free.
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but could OP not just pay the other debt off with the card directly?
 
Ok I don't think any cards allow you to transfer money to your current account, as it is called a 'cash withdrawl' if you do that.

Hmmm Guess I/ he(!!) needs to research this a bit more, as I don't know all the ins and outs.
 
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Paid one of my C/C cards yesterday and they asked if I wanted to transfer balance from card number 2 [different company] at 7% for life of balance or 1.5% if paid off in 9 months.

I said I only owed £500 on card 2 at a reasonable rate and she replied, 'Why not let us pay £1,000 onto your card, this will settle the £500 then transfer your now £500 credit into your bank account as cash to spend as you like?'.

You can then pay us off as outlined above with the money treated as goods or balance transfer and not cash, so yes it can be done if I've understood the question correct. :)
 
That kind of advice should be illegal.... "yeah i see you are trying to get out of debt, but how about we put money in your account for you to fritter away as you like..... Oh you'll have to pay it back at horrendous rate xyz"
 
Bes said:
Ok I don't think any cards allow you to transfer money to your current account, as it is called a 'cash withdrawl' if you do that.
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Yes you can, it needs a Super Bank Tranfer credit card and the process is called Stoozing. Basically free money.
 
Showboat said:
That kind of advice should be illegal.... "yeah i see you are trying to get out of debt, but how about we put money in your account for you to fritter away as you like..... Oh you'll have to pay it back at horrendous rate xyz"
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its the debt trap.

you owe 500 quid
hey ill offer you a new loan of 1000 now you can pay of your old loan and still have 500 to spend!

now your paying double intrest on 500quid and have another 500quid to pay intrest on.

slowly but surely youll get into more and more debt.

theres a nice dispatchs on 40d about christmas on credit and how the credit companies will rape you if your iq is small enough
 
[TW]Fox;15528927 said:
Its hardly free money is it?
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It isn't?

Withdraw balance of card at 0% fee to a savings account for duration of the interest free period, usually 16 months. Before interest free period runs out pay back the balance. Pocket the interest.
 
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