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  • FIRST POST
    • chris698
    • By chris698 20th Apr 17, 7:39 PM
    • 2Posts
    • 0Thanks
    chris698
    Cash Advance THEN Balance Transfer.
    • #1
    • 20th Apr 17, 7:39 PM
    Cash Advance THEN Balance Transfer. 20th Apr 17 at 7:39 PM
    Hi.

    I'm looking to clear an overdraft due to high fees and I don't qualify for a money transfer card.

    Is it possible for me to take out a credit card and take a cash advance and pay the 2.5% fee and then immediately move this debt across to a 0% balance transfer to avoid paying the cash advance interest?

    Many Thanks.
Page 1
    • bearcat16
    • By bearcat16 21st Apr 17, 12:46 AM
    • 307 Posts
    • 347 Thanks
    bearcat16
    • #2
    • 21st Apr 17, 12:46 AM
    • #2
    • 21st Apr 17, 12:46 AM
    Yes.

    You'll pay the cash fee, and maybe a few day's worth of interest while waiting for the transfer to be processed, but that will be all.

    Remember, though, that credit card cash advances are recorded on your credit file. Some lenders view them as evidence of poor financial management, and have been known to refuse to lend if there are too many.

    If you're planning some big application in the next few months like a mortgage or significant loan, cash advances are best avoided.
    • jonesMUFCforever
    • By jonesMUFCforever 21st Apr 17, 2:11 PM
    • 23,746 Posts
    • 10,974 Thanks
    jonesMUFCforever
    • #3
    • 21st Apr 17, 2:11 PM
    • #3
    • 21st Apr 17, 2:11 PM
    If you don't qualify for a money transfer card what makes you think you will get a balance transfer card?
    Or do you have an existing card with an offer already?
    What goes around - comes around
    give lots and you will always receive lots
    • Marcio45
    • By Marcio45 21st Apr 17, 4:28 PM
    • 177 Posts
    • 83 Thanks
    Marcio45
    • #4
    • 21st Apr 17, 4:28 PM
    • #4
    • 21st Apr 17, 4:28 PM
    Jones, from personal experience balance transfer cards are easier to get than money transfers. Barclaycard, for example, will offer BT deals for poor/fair credi scores.

    The credit scoring for money transfer cards appear to be strictier or maybee it is the fact that there are less banks/credit card issuers to offer MTs.
    • chris698
    • By chris698 21st Apr 17, 9:24 PM
    • 2 Posts
    • 0 Thanks
    chris698
    • #5
    • 21st Apr 17, 9:24 PM
    • #5
    • 21st Apr 17, 9:24 PM
    Thanks for the replies.

    I've never had issues with 0% purchase or 0% balance transfers but have never been able to get 0% money transfer.

    This to me is a very similar way to get the same outcome, just a little bit more long winded.

    I'll have a cash advance fee of 2.5% (which is actually cheaper than the set up fees of some money transfers) and then move the whole debt across to a 0% for 24 months balance transfer.

    This will save me approx £60pm overdraft fees.
    • Marcio45
    • By Marcio45 21st Apr 17, 10:52 PM
    • 177 Posts
    • 83 Thanks
    Marcio45
    • #6
    • 21st Apr 17, 10:52 PM
    • #6
    • 21st Apr 17, 10:52 PM
    Chris.
    Not sure which card you got but normally you also pay a balance transfer fee on top, average is 3%. Unless you BT card has a 0% fee, like Tesco and MBNA are offering on some of their cards at the moment. But either way, you will still save money.
    • phillw
    • By phillw 22nd Apr 17, 2:56 PM
    • 588 Posts
    • 252 Thanks
    phillw
    • #7
    • 22nd Apr 17, 2:56 PM
    • #7
    • 22nd Apr 17, 2:56 PM
    There is a credit card that in the past allowed you to transfer positive balances into your current account. Most will want to refund the money to the card it came from. That is probably a better idea than using a cash advance. I don't know what the card was or if it's still available, but it was mentioned on here.

    However there is no reason why you can't setup the money transfer and then withdraw it from a cash machine as soon as it arrives in your account, so you won't pay any interest.
    Last edited by phillw; 22-04-2017 at 2:59 PM.
    • Ben8282
    • By Ben8282 22nd Apr 17, 9:08 PM
    • 1,913 Posts
    • 831 Thanks
    Ben8282
    • #8
    • 22nd Apr 17, 9:08 PM
    • #8
    • 22nd Apr 17, 9:08 PM
    £60 per-month overdraft fees??? How big is this overdraft ....
    There is nothing wrong as such with your idea but remember you will pay 3% cash advance fee.
    Also remember the cash advance limit may be less than your total credit limit, perhaps only 50% of the total limit. Something to be remembered as your overdraft must be pretty large.
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