SBT Loophole

Tony_H_3

I am trying to get hold of some cheap cash, and today I struck on an idea. As far as im aware this hasn't yet been mentioned I can see know reason why this idea cannot be used to instantly increase your stooze pots.

As the thread title suggests it's a suggestion which if appropriate would make every card SBT'able: Here goes.

Apply for two cards and if successful make a "cash advance" ooooh I can hear you all say, think of the interest you pay on them, then instantly arrange a BT on the other card for the "cash advance" amount. Thus you instantly have the cash and have instantly transferred it too 0% for X months.

Am I missing any obvious problems with this?

YorkshireBoy

Tony_H wrote:

Am I missing any obvious problems with this?

The uncapped cash advance fee perhaps?

Example:

Withdrawing £10K from a Halifax card will incur a 2.5% handling fee of £250.

Allowing for a 7 day BT to another card, at 1.736% monthly interest, will incur a further interest charge of £39.20.

Total cost is £289.20

You'd need to have the £10K in ING for over 9 months (as a basic rate tax-payer) to recover this cost.

All this assumes of course you can get a 12 month no fee BT card to take the Halifax debt - and there isn't one!

realaledrinker

The Co-op Clear card has no fees on cash advances. There is no 0% interest period but I can see no reason why it can't be used as a SBT card.

Milarky

First Direct offer up to 56 days interest free on all items [not just purchases] but charges an uncapped fee of 2%

http://www.firstdirect.com/creditcards/classic_card_detail.shtml

It says that the fee applies to certain balance transfers, which I take to mean "all transfers unless we tell you..". If you could get a BT that was exempt here you'd be quids in of course.

r2mahara

This might be an interesting scheme for smaller amounts of money.

Suppose one arranges the balance transfer, waits a few days and then advances the money. The BT should go through shortly after with only a couple days interest.

Of course there are cash advance fees of around 2-3% -- but it might be a cheapish way to raise some money.

SBT's are hard to come by.

Afahmaep

Nat West allows this facility using their Money Transfer service.
'it enables you to transfer money from your credit card directly into any UK bank or Building society in one quick and easy phone call.'
I've made three such transfers by transferring from 0% cards onto my Nat West credit card, waiting two or three days then making the transfer from my Nat West card into a savings account.
There is no fee for this service
All you pay is the interest which is 1 or 2 days
NB I didn't try to put my account into Positive Balance in case Nat West wouldn't allow it.

r2mahara

I have an RBS card - which I think is the same as the Natwest card and would like to do the same thing.

You are saying you put money on to your Natwest card and then move it to an account. I'm confused - it seems like at the end of this you have a balance on the Natwest card on which interest has to be paid.