Car Loan 'Hack' Help (How to Transfer Money from a Credit Card to Bank Account, Better than PayPal's 2.6%?)

The Wololo Wombat on 14/02/2018 - 18:05

Hi,

So my wife's car recently broke down. Our plan this year was to saving up $15k, and buy her a new one, but the mechanic suggests that sell it NOW so we don't have to fork out more money for repairs this year.

We've put a $1k deposit on a $13,750 car we found/negotiated on gumtree. We need to take out a loan for the remaining $12,750.

At the moment my plan is to send the seller the money via PayPal (or to myself, then the seller, via paypal), using my credit card. This incurs a 2.6% fee. It is NOT seen as a cash advance. As far as I can tell, there is no limit to the amount I can transfer with pay pal.

I then, will open a new credit card with Virgin It has a 0% P.A balance transfer fee for 18 months, only a $64 per year annual fee + flight vouchers and points on offer. I will transfer the balance to this card within the first card's interest free window and we'll be good to go.

So, where I'm losing money is the 2.6% PayPal fee. Does anyone know of a cheaper way to send money from a credit card to a bank account?

Financial

Comments

  • Easton on 14/02/2018 - 18:38
    +2

    Do a balance transfer to a credit card that has a zero balance. Once that payment has cleared and that credit card has a negative amount owing, use Internet banking to transfer the balance transfer funds into a bank account.

    I requested a balance transfer with Westpac to my ANZ card. Once it cleared, I withdrew from my ANZ credit card to my bank account.

    Note: Not all banks allow you to withdraw from a negative balance credit card for free. Check with your particular bank(s). Make sure that the payment has cleared and isn't still pending - otherwise, you'll be charged a cash advance fee and possibly interest.

    • The Wololo Wombat on 14/02/2018 - 22:29

      Good advice - thanks! I wonder if the Westpac group can withdraw? I'm with St George.

      • tomclancy on 15/02/2018 - 10:16
        +1

        Always best to read their latest T&Cs of the product that you have, however in November 2017 I did this through Westpac and the fee was just $2.50 for the cash advance because the card was in credit. The T&Cs for cash advances specifically mention fees for negative balances.

        EDIT: the $2.50 cash advance fee was charged on top of the cash withdrawal, so if your credit card has a negative balance of $1000 then do a cash advance/withdrawal request for $997.50 so afterwards the balance of the credit card is $nil

    • Yttrium on 14/02/2018 - 22:42
      +1

      What this guy said.

      Ignore PayPal , do a balance transfer to another cc , and then withdraw the positive balance.

  • themirror on 14/02/2018 - 21:29
    -5

    Pretty sure you can't send money via a credit card on paypal - only linked bank accounts (direct debit). Otherwise think about the infinite rewards points everyone would get!

    • The Wololo Wombat on 14/02/2018 - 22:28

      You can, but there is a 2.6% fee (+30c too), so that why you can't do it.

      P.S. I didn't neg you, someone else did lol

      • themirror on 15/02/2018 - 07:15

        Oh looks like you can. Last time I remember trying it would only let me select my linked bank accounts.

  • Quantumcat on 14/02/2018 - 23:35

    You can send the payment as friends and family to not incur the fee, if you trust the seller (and anyway you can still use the credit card's chargeback feature if something goes south, before you transfer the balance).

    • [Deactivated] on 15/02/2018 - 14:14
      +3

      Not with a credit card you can't.

    • realfancyman on 15/02/2018 - 22:19
      +2

      Credit card still incurs the fee here

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