Using credit cards as an interest free loan?
09-04-2005, 02:03 PM
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Jeebus
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Using credit cards as an interest free loan?
Ok, I have never wanted a credit card so never looked into them, but I remember someone at an old workplace had about £4k on a card at 0% and he kept switching it around every 6 months or something so basically he had an interest free loan. (He saved the money as premium bonds!)
I need to find about 6 or 7k (between 5 or so people) to buy a camper van to go on tour for the summer. Then we sell it when we get back for the price we bought it for (or thereabouts), and using that money to pay off the card again. Hence not actually spending any money.
How is it done? What cards do I need to look for?
I had a search on Google but was just innundated with crap!
I need to find about 6 or 7k (between 5 or so people) to buy a camper van to go on tour for the summer. Then we sell it when we get back for the price we bought it for (or thereabouts), and using that money to pay off the card again. Hence not actually spending any money.
How is it done? What cards do I need to look for?
I had a search on Google but was just innundated with crap!
09-04-2005, 02:04 PM
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09-04-2005, 02:08 PM
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do you intend to buy the camper with the credit card? if so you need one that offers 0% interest on purchases for the period, rather than balance transfers.
09-04-2005, 02:09 PM
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So basically you get a card with 0% on balance transfers for say 6 months, and transfer the money off the card into your bank account. Then if you need to extend it beyond 6 months you go with a different card company using a similar offer and balance transfer the money off card 2 to pay off card 1 then cancel that account? 
Sounds too easy to be true! (Providing you get approved obviously
)
Sounds too easy to be true! (Providing you get approved obviously
)
09-04-2005, 02:14 PM
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buy it on one card then swap the balance straight away to another you've got lined up ready with 0% on transfers, sainsbury cards are 12 month's intrest free on transfers at the minute 
i think the problem you might have is getting one with a limit around 6-7k, i'm a house owner in a very stable job and the biggest limit i could get was 4.5k not that i've used any of it but i thought i'd get a 10k limit or summat.
Its quite simple, i had a nat west card with about a grand on it paying silly intrest, just got an application for for a virgin card filled it in stating how much balance from another card i'd like to swap and jobs done, card came through the post with my first statement with the grand from the nat west card (which i still have and is still active although i dont use it)
i think the problem you might have is getting one with a limit around 6-7k, i'm a house owner in a very stable job and the biggest limit i could get was 4.5k
not that i've used any of it but i thought i'd get a 10k limit or summat.Its quite simple, i had a nat west card with about a grand on it paying silly intrest, just got an application for for a virgin card filled it in stating how much balance from another card i'd like to swap and jobs done, card came through the post with my first statement with the grand from the nat west card (which i still have and is still active although i dont use it)
09-04-2005, 02:16 PM
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the problem you will have there is getting "cash" from the card, because most will charge the normal reates for "cash advance" - you need to be able to transfer an existing balance.. You can try transfering to your Visa Debit card (ie your bank account 
) in the hope they don't notice, sometimes that works, sometimes not.
My mate has made a good few quid over the last year juggling 0% transfer cards, and bunging the "balance" into high interest savings accounts for the duration
He had 6 cards up to £6K each paying around 5% interest to his savings - not bad if you work that out over a year for doing fook all apart from managing the cards and making sure you pay them off in time, or transfer to another one..
) in the hope they don't notice, sometimes that works, sometimes not.My mate has made a good few quid over the last year juggling 0% transfer cards, and bunging the "balance" into high interest savings accounts for the duration
He had 6 cards up to £6K each paying around 5% interest to his savings - not bad if you work that out over a year for doing fook all apart from managing the cards and making sure you pay them off in time, or transfer to another one..
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might look into that, did he draw it out as cash to start the savings or just pay it in as a cheque or summat?
09-04-2005, 02:21 PM
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Ok cheers for the advice. They definitely wouldn't give me one with more than a couple of grand, but between the lot of us we could do it, or I could ask my parents to get one if it really can be done with no charges. (Just have to make sure the camper is insured for the value of the credit card loan )
)
09-04-2005, 02:24 PM
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Matt,
He managed to get them to balance transfer to his debit card I think. At the time a lot offered 0% on purchases too, so he bought EVERYTHING on the card, and bunged virtually all his salary into savings each month
He managed to get them to balance transfer to his debit card I think. At the time a lot offered 0% on purchases too, so he bought EVERYTHING on the card, and bunged virtually all his salary into savings each month
09-04-2005, 02:29 PM
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Would this work, get any card with reasonable limit, pay the full lot as a cheque into a savings account then switch the balance to another card with 0% to avoid intrest on cheque purchase's, have the intrest payed into your current account pay the minimum monthly repayments then when the 0% period is up just switch it again, keep doing this indeffinately?
09-04-2005, 02:36 PM
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Matt J, Yup that'd work as long as you have the discipline to keep swapping every 6 months....I know someone who pays a lump sum off his mortgage every 6 months and he's worked out it'll cut his mortgage term down by 4yrs 
Use and abuse mate 
Use and abuse mate
09-04-2005, 02:48 PM
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Originally Posted by Matt J
Would this work, get any card with reasonable limit, pay the full lot as a cheque into a savings account then switch the balance to another card with 0% to avoid intrest on cheque purchase's, have the intrest payed into your current account pay the minimum monthly repayments then when the 0% period is up just switch it again, keep doing this indeffinately?
i think credit card cheques are class as cash advances by the companys and you cant have the full credit limit as a cash advance. would need looking into
09-04-2005, 05:10 PM
#17
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I had about 4k to spend, bought 4Ks worth of premium bonds, spent 4K on a credit card on the stuff i needed to buy, that was about 3yrs ago, not payed a penny in interest yet, just been paying the min each month, swaping the card every 6/9 or 12months depending on my current deal
Basically like saving, eventually i will pay off the lot, still have the crap i bought and still have 4K in bonds, that could pay out big time
Basically like saving, eventually i will pay off the lot, still have the crap i bought and still have 4K in bonds, that could pay out big time
09-04-2005, 05:49 PM
#18
I've found that life I needed.. It's HERE!!
Very easy to do, its exactly what i do, only problem you will find is that you can only get so many as egg and mbna (for sake of an example) are one and the same company so only one will accept you for credit. Most usually will allow you to have some 'credit card cheques' which if used cleverly can increase your bank balance quite significantly. I just swap every 6 months now interest free and straight away cancel the old card so that i can get back on their schemes again in 6 months time
any help just look at that money supermarket website above or motely fool is also good. Loads of info if yu look up 'stoozing' on google
any help just look at that money supermarket website above or motely fool is also good. Loads of info if yu look up 'stoozing' on google
09-04-2005, 06:02 PM
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Im sure I read somewhere that pretty soon the industry watchdog are stopping all CC companies from offering interest free incentives to sign up with them as it is seen as encouraging people into debt.
I cant for the life of me remember where I read it but if it is true you have to consider what effect this might have on your plans.
IMO Credit cards are the spawn of satan, ive just cleared mine for the 2nd time in the last 6 months, first time was nearly £6k (hence why I sold the cossie) and ive just cleared £2.5k off them again with my annual bonus as I have absolutely no will power and have a tendancy to like buying cars on them
However this time they have been cut up
Phil, aren't you a student? Things may have changed since I worked in credit control but Students never used to be able to get credit
I cant for the life of me remember where I read it but if it is true you have to consider what effect this might have on your plans.
IMO Credit cards are the spawn of satan, ive just cleared mine for the 2nd time in the last 6 months, first time was nearly £6k (hence why I sold the cossie) and ive just cleared £2.5k off them again with my annual bonus as I have absolutely no will power and have a tendancy to like buying cars on them
However this time they have been cut up
Phil, aren't you a student? Things may have changed since I worked in credit control but Students never used to be able to get credit
09-04-2005, 07:27 PM
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Clare, you can get student credit cards very easily. Infact, they even visit the student unions offering free space hoppers to everyone who signs up to Barclaycard!
I will be a graduate in a couple of months which will give me even more options (although to raise £7k it would obviously need to be split between a few people). If not then i'll just get my parents/sister to sign up for one 
I will be a graduate in a couple of months which will give me even more options (although to raise £7k it would obviously need to be split between a few people). If not then i'll just get my parents/sister to sign up for one
10-04-2005, 12:32 AM
#24
Originally Posted by richm
the problem you will have there is getting "cash" from the card, because most will charge the normal reates for "cash advance" - you need to be able to transfer an existing balance.. You can try transfering to your Visa Debit card (ie your bank account ) in the hope they don't notice, sometimes that works, sometimes not.
My mate has made a good few quid over the last year juggling 0% transfer cards, and bunging the "balance" into high interest savings accounts for the duration He had 6 cards up to £6K each paying around 5% interest to his savings - not bad if you work that out over a year for doing fook all apart from managing the cards and making sure you pay them off in time, or transfer to another one..
) in the hope they don't notice, sometimes that works, sometimes not.My mate has made a good few quid over the last year juggling 0% transfer cards, and bunging the "balance" into high interest savings accounts for the duration
He had 6 cards up to £6K each paying around 5% interest to his savings - not bad if you work that out over a year for doing fook all apart from managing the cards and making sure you pay them off in time, or transfer to another one.. ive got 27k with lloyds tsb high interest account 
just rang phone bank up to ponder ive made £700 on £27k interest
over a year "lol" and she said you might get charged for banking fees
so thats not the real figure
"GO FUCKING FIGURE" 
off to see the manager on monday "been with tsb 14 years"
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