A new way to use cashback credit card?

kragen_ironfist

I have had an idea which might help me make some money while I pay off my CC balance.

Currently I have £4.8k stashed on Capital One at 3.9% for the life of the balance and I am paying it off at £200 per month via direct debit.

My idea is as follows

Apply for a cashback card (whichever is best)

cancel the DD to capital one

set up regular payment from cashback card instead of the DD

pay off the cashback card before I get charged interest

getting cashback but keeping the fixed interest on the balance

Would this work? What would be the best card to apply for

charlie12

You can only get cashback from purchases, and you cannot pay off another card as a purchase, only as a balance transfer, where you won't get cashback.

So to answer your Q, it won't work unfortunately :-/

zcaprd7

"set up regular payment from cashback card instead of the DD"

This will be tricky, will the card company consider it a purchase and give you cash back on it...

Although the AOL MBNA gives you points on balance transfers which can be used on paying for broadband, however the MBNA charge would wipe out any benefit.

Although if it stays capped at £35 (and you have a big enough limit) it does become possible to transfer back and forth to get enough points for free broadband!

Milarky

Coop Bank Travelcard comes nearer to what you are looking for - It gives 'Travelcare' points (at 1% value) for any purchases OR balance transfers done, and it is interest free for the first seven months.

You can also 'misuse' the card by repeatedly transferring a balance and paying it back again as many time as you like - in 7 months my transfers exceeded £13K on a credit limit of £4800.

You could (I suppose) channel every other balance transfer through this card over time just to get the loyalty points built up