Paying a Private Seller with a Credit Card

[Deactivated] on 16/12/2015 - 18:35

Hi,

I have recently been approved for a $6000 credit card from NAB with 15 months interest free on purchases which I intend to use to purchase a car.

My initial plan was to link the credit card to my PayPal account and pay a family member the entire balance before having them withdraw the funds as cash to make things easier. However, I have since discovered Protecti, a website which offers the same service, for a lesser fee.

I was just wondering if anyone in the ozbargain community knew of a cheaper (or even free ;) ) way of doing this?

As always, your help is much appreciated guys!

Cheers

Financial

Comments

  • PVA on 16/12/2015 - 18:57

    that wont be counted like a cash advance type transaction and interest starts immediately?

    • [Deactivated] on 16/12/2015 - 19:17

      I wasn't aware of that :/ I'd have to look into that

      • PVA on 16/12/2015 - 19:22
        +1

        be careful, otherwise people could just paypal themselves and get an interest free loan. I am betting its only for purchases directly with credit card.

        • [Deactivated] on 16/12/2015 - 19:37

          Yeah, i'll definitely look into it. Cheers

    • ozhunter on 16/12/2015 - 19:43

      It does say

      Optional credit card fee
      If you choose to pay by credit card via BPAY, a payment fee of 1% will apply. Payments by credit card are generally considered “purchases” by most banks for the purpose of attracting rewards points and interest free periods. Check with your bank.

      So it would be best to confirm with the bank if they do consider it a purchase.

      • [Deactivated] on 17/12/2015 - 11:03

        I called the bank and they said as long as paypal draws it directly from my account and I do not manually transfer the funds via internet banking, it would be considered a purchase

  • oscargamer on 16/12/2015 - 19:20
    +2

    buying a car on a CC is a very expensive way of doing business…unless you plan on paying it off on the first bill

    • [Deactivated] on 16/12/2015 - 19:37

      Yeah, I have the funds to buy the car, just don't want to outlay the entirety of them at once. I fully intend to repay the card within the interest free period. Thanks for the advice!

  • CyberMurning on 16/12/2015 - 19:27

    What interest free on purchases really means? I'm not sure if paypal method is working?

    • [Deactivated] on 16/12/2015 - 19:38

      I'll have to look into it to be sure. I'll call the bank tomorrow.

  • Neilzy on 16/12/2015 - 23:07
    +1

    be careful. im pretty sure cash advances attract a different (higher) interest rate than standard purchases and like PVA said; interest is charged immediately and daily for such transactions. 6k could turn into 7.2k instantly and exponentially after that.

    IMO, I would steer clear of credit cards altogether

  • verio on 17/12/2015 - 21:36

    You should be fine since any transactions via PayPal are considered to be purchases. However, your family member or you will pay ~2.5% in fees to PayPal for processing this payment. Is it really worth it?

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