Withdrawing cash... then transfering a balance

Kate5251

Hi

Does anyone know if you can legitimately do this?
If I withdraw cash on a credit card I already have, then take out a new one with 0% on BT, is transferring the "cash" balance the same? Can I do this?

Thanks

Any

I cannot see why not.

However you usually pay cash advance handling fee and also interest from the day of withdrawal.. So I personaly wouldn't do that as it will be still expensive.

How much/how quickly do you need the cash?

Kate5251

£5k in total, but can't get that much from the credit card but anything would help. Just short term (6 months) as I've been recommended not to re-mortgage yet (just come out of fixed period).

CannyJock

You'd be better off looking into a Virgin Money card, 4% fee for balance transfer direct to your current account (for 16 months so equivalent o 3% APR).

Have a look around, you'll find various other threads discussing the card.

If you're just out of a fixed period then presumably you're now onto a standard variable rate? Who recommended that you don't remortgage, not your current mortgage provider I assume?

Kate5251

Literally just found a Stoozing article - think this is similar - thanks a lot though to both of you!

Any

I am also wondering who advised not to remortgage yet?
I am in need to remortgage in May 2010 and I am worried that the fixed rates will go up by then... If I could I would do it now.. Maybe I am missing something?

Kate5251

It was my independent advisor. I've come out of a fixed deal on 5.75% meaning I'm dropping to 1.6% - a huge monthly saving and he advises to stay "penalty free" and take advantage of the saving for the next 3-6 months, then take a 5 year fixed as soon as the market starts to move again.

I don't entirely understand but he's been excellent in the past so I'm sticking with his advice!

Any

Oh, I see. I thought it is the other way round.. Now I don't understand what does the need of cash have to do with not remortgaging then...

Moggles_2

Kate5251 wrote: »

If I withdraw cash on a credit card I already have, then take out a new one with 0% on BT, is transferring the "cash" balance the same? Can I do this?

If you decide to do this, I'd line up the new balance transfer card, before you draw the cash from your existing card.

Better still, a few rather special credit cards will allow you to transfer cash from the card to your current account at balance transfer rates. A handling fee applies, but there are no other charges during the introductory 0% period. You need:

a card issued by MBNA (e.g. Alliance & Leicester, MBNA itself, Sony, Virgin), Egg card or the Post Office card

Which option is best depends, to some extent, on which cards you have at the mo or have held recently

To maximise the 0% period, 16 months is currently available to new customers from Virgin.
Note: there's a 4% handling charge for money transfers.

http://uk.virginmoney.com/credit-card-v3/