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credit card advice

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Hi all just wanted some advice on taking out a credit card. It is my first time hence I do not know of any catches included. I simply want to borrow upto £7000 without paying any interest, hence if I … Read More
danib Avatar
8y, 2m agoPosted 8 years, 2 months ago
Hi all just wanted some advice on taking out a credit card. It is my first time hence I do not know of any catches included. I simply want to borrow upto £7000 without paying any interest, hence if I take out a credit card can I withdraw the money £7000 and because most of them have 12 15 months interest free hence I can pay back once the interest free period finishes. Will they be any kind of withdrawal charge / transfer charge to my current acc. Which cards do you suggest I go for?
Also can this effect my credit rating if I just withdraw and put money back in before interest free time finish.
Thanks.
danib Avatar
8y, 2m agoPosted 8 years, 2 months ago
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Comments/page:
#1
cash advances aren't usually included in the interest free option plus they'd charge you a cash advance fee and you'd be limited to how much you could advance.

balance transfers are not usually interest free either just depends who the card is with.
#2
Most charge 2.5-3% interest on deposits into currect accounts
Taking the money out of a cash machine is even more costly

http://www.moneysavingexpert.com/cards/balance-transfer-credit-cards#what
#3
A few years ago you could have done this for free but I don't think it is possible anymore with the introduction of increased balance transfer fees.
#4
yeah ive heard you have to pay for cash withdrawals...

is the card your thinking of getting going to give you a 7,000 limit? my husband applied for a credit card in january and was told his limit would be 3,000
#5
simon012
Most charge 2.5-3% interest on deposits into currect accounts
Taking the money out of a cash machine is even more costly

http://www.moneysavingexpert.com/cards/balance-transfer-credit-cards#what


so does it mean if i get a deal with 0% charge for transffering cash into current account they will be no charge.
#6
danib
so does it mean if i get a deal with 0% charge for transffering cash into current account they will be no charge.

You are always charged a fee for cash i think the best atm is 2.98%.
Also with most credit cards your limit will need to be more than £7000 for you to take
£7000 cash as not ALL of your limit is available to be used as CASH
#7
Get an Egg Card, 2.9% to transfer to your bank account and it will be treated as a purchase hence 0%.
#8
Some of the credit cards give you some cheques which I guess you could use up the amount of your credit available. But I am not sure whether there is a charge if you use this cheques or not.

Regarding cash advance you pretty much get always charge for those.

Normally you get good deals in balance transfer (which normally means a balance from another credit to your new one) and with new purchases.

Bear in mind that credit card companies are more strict now that what they were a couple of years ago. So to get £7000 credit now you better have a decent job and income otherwise you'll be lucky if you get £4000 or £5000. You might need to apply for a gold or platinum card to get that credit limit
#9
and on top of what's been said above, it is highly unlikely you will be given a £7000 limit to begin with. Depending on your circumstances, most companies will provide an initial credit limit of between £500 and £2000 which can be increased only after your account has been monitored for a period, usually at least 3 months but often more.
#10
because i am with hsbc for over 4 years now with current account and now graduate account. if i apply for hsbc master credit card do you think i can get upto £7000
#11
danib
because i am with hsbc for over 4 years now with current account and now graduate account. if i apply for hsbc master credit card do you think i can get upto £7000

That's something you would have to ask HSBC themselves
All I know for sure is that banks are being very cautious atm
#12
tinkerbell28
Depends on how you bank, other comittments, risk factors and history. Best thing to do is make an appointment to speak to someone at the bank and ask. Tell them what you want the money for and see if they can find a product to suit as if you are after £7000 cash a loan would probably be a better option in the long term.


If you are going to pay the funds of within the zero percent term than a load would certainly not be a better deal.
#13
As I stated above it would not be a cash advance.

If he had an Egg card he could transfer the funds straight through to his account and it would be treated as a purchase, the same is for MBNA and Mint.
#14
We don't know the op's circumstances but from how his first post is worded it seems as if he is aiming to clear it quickly.

On that basis the balance transfer would certainly be the cheapest option.
1 Like #15
Go to tescos and buy a pint of milk with your CC and when they ask if you want any cash back say yes and ask for £6000.55p.
Sorted.
#16
danib
because i am with hsbc for over 4 years now with current account and now graduate account. if i apply for hsbc master credit card do you think i can get upto £7000


as above, only one way to find out and that is ask/apply. But I'd seriously doubt it. I recently picked up a new credit card from my own bank who I've been with for 20 years (perfect credit history) and they started me on £2,500! I have limits of about £15,000 on other credit cards (unused) so was surprised they started me so low. Sign of the times perhaps.
#17
Don't forget that even if you manage to get cash interest and fee free (which is unlikely) you will still have to contend with the minimum monthly repayments of the card involved - perhaps 2% (or £140) in the 1st month. An interest free period of 12-15 months just means that interest won't be added to the initial debt for that period of time, it doesn't absolve you of the responsibility to pay the debt back in accordance with the terms of the agreement.
#18
If you are a graduate with HSBC and earn over 25k you will be eligible for their Platinum card (a true platinum card) which will have a minimum of 3.5k limit.
#19
yes that is correct - i do not want a loan because i do not want to pay interest. i don t mind paying for egg card the initial fee of 2.98% to transfer money to current acc. but after this for the next 12-15 months i will not have to pay anything. and then once the deadline is over or i have got the money back to repay i can put it back on the credit card. thanks for all advice.
#20
i would have thought you'd have a better chance of getting a low interest rate loan than a credit card with that kind of balance. besides they can alter the apr and other terms or conditions pretty much willy nilly and will do once they see you using it.
#21
ClarityofMind
besides they can alter the apr and other terms or conditions pretty much willy nilly and will do once they see you using it.


Not if you are on a promotional rate.
#22
chester123
Not if you are on a promotional rate.


i would have thought if they need 7000 cash its going to take more than 3 months or so to repay it and once you're outside the promotional rate time zone... they can s....you if they so wish.
#23
If you read the thread you will see that the promotional rates being talked about are 12 - 15 months.
#24
chester123
If you read the thread you will see that the promotional rates being talked about are 12 - 15 months.


Unwad your knickers, I was using literary license! 7000 pounds is a lot to pay off within a 12 month period, especially if you dont have it in the first place and need to consider credit to get it.
#25
danib;4734900
yes that is correct - i do not want a loan because i do not want to pay interest. i don t mind paying for egg card the initial fee of 2.98% to transfer money to current acc. but after this for the next 12-15 months i will not have to pay anything. and then once the deadline is over or i have got the money back to repay i can put it back on the credit card. thanks for all advice.


I don't know where it says you won't have to pay anything for 12-15 months - there will be a minimum repayment of 2% of the balance each month.
#26
tinkerbell28
I tried to point that out earlier, also I think the op is forgetting they will still have the minimum payments too............


Thanks sweetie x

credit card debt is so easy to get into and so hard to get out of.

OP think carefully before you go down this road.

A handleable loan with fixed rate low interest repayments is probably a much wiser option.
#27
ClarityofMind
Unwad your knickers, I was using literary license! 7000 pounds is a lot to pay off within a 12 month period, especially if you dont have it in the first place and need to consider credit to get it.


It may be a lot to pay off for some but as the OP quite blatently states: -

"hence I can pay back once the interest free period finishes"

All of this theorising is therefore inconsequential.

Knickers, never in twist.
#28
chester123
It may be a lot to pay off for some but as the OP quite blatently states: -

"hence I can pay back once the interest free period finishes"

All of this theorising is therefore inconsequential.

Knickers, never in twist.


My comments were written to help OP.

Not interested in having an argument with you. Waste of both our time.
#29
ClarityofMind
Thanks sweetie x

credit card debt is so easy to get into and so hard to get out of.

OP think carefully before you go down this road.

A handleable loan with fixed rate low interest repayments is probably a much wiser option.


Op has stated that he wants to borrow for 7k 15 months max

Using a zero 0% card would mean monthly repayments off £480.20

Having a loan (best rate at the moment off around 8%) would mean repayments off £513.33

If you want to have £33.33 less per month then by all means go for a loan.
#30
ClarityofMind
My comments were written to help OP.

Not interested in having an argument with you. Waste of both our time.


Certainly do not want an argument, your advice will lose the OP money, illustration above.
#31
chester123
Certainly do not want an argument, your advice will lose the OP money, certainly not helpful in the current economic climate, illustration above.
#32
chester123
Op has stated that he wants to borrow for 7k 15 months max

Using a zero 0% card would mean monthly repayments off £480.20

Having a loan (best rate at the moment off around 8%) would mean repayments off £513.33

If you want to have £33.33 less per month then by all means go for a loan.


Figures rely on hypothetical interest rates.

Not sure that OP wishes to pay off IN FULL after any promotional rate finishes either or whether he/she wishes to begin making serious payments by then.

I'm sure they will research for the best rate they can find to get the best deal. Wiser to not dismiss the idea of a loan if a better rate can be found than by using a credit card.
#33
ClarityofMind
Figures rely on hypothetical interest rates.


Cheapest loan appears to be Sainsbury's at 8.1%, below

http://www.sainsburysbank.co.uk/borrowing/micro/loansapply_micro.shtml?source=NETGOOGLLOANEADV0001

Cheapest card appears to be, Virgin at 2.9% fee and then 0% for 15months.

http://uk.virginmoney.com/virgin/credit-cards-v1/

My illustration is therefore very much correct.
1 Like #34
leefal
Go to tescos and buy a pint of milk with your CC and when they ask if you want any cash back say yes and ask for £6000.55p.
Sorted.


lol you just make me laugh a lot with this comment today. I had to rep you for this. I can imagine the lady's face at the till once you said that to her :thumbsup:

danib
because i am with hsbc for over 4 years now with current account and now graduate account. if i apply for hsbc master credit card do you think i can get upto £7000


From what you are saying here. Can I ask you the following questions?

1. Is this going to be your first credit card?
2. Do you have any other credit (i.e. mortgage, car loan, etc) ?


If you answer is YES to the first question and NO to the second question then I don't think you will get anywhere near that credit lmit, unless you have a lot of savings or have been working for quite some time in a very good job with a good salary

Just to give you an idea. IF you earn £1000 a month (before tax) you probably get a credit card with around that limit or maybe twice as much.

So for you to get a £7000 limit you need to earn at least £3500 a month (equivalent to around £40k+ a year).

If you are not earning around this I don't really think you will get that credit.

I hope this help you a bit.

These are just approx number and don't exactly mean that you will or will not get it but can give you a rough idea which I believe is what you want to know.

I hope this help you a bit.

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