6 months 0% / cash advance qs

allsaint

Right, i need to get my hands on some money sharpish. I've just been accepted for a Flybe card with a 0% BT offer for 6 months (for any BTs made in the first 90 days). I was hoping to use this new card for a couple of cash advances from an ATM, transfer that amount over to another card (A&L card that doesn't allow cash advances) and then do a balance transfer back onto the Flybe card within the 90 days at the promo rate. Can anyone see a problem with this cunning masterplan?:D or am i missing something?

dylanuk

I've never heard of a credit card that doesn't allow cash advances - which A&L card is it?

Otherwise yes it would work - but you'd incur quite a lot of handling fees - from the cash withdrawals and then from the balance transfer/s - plus any interest you'd be charged on the cash withdrawals until they were paid back in full.

Can you get an Egg Money credit card? It would be much simpler and cheaper if you can. Basically it allows a positive balance, so you could balance transfer at 0% the credit limit of the Flybe card to Egg Money. Then move the credit in Egg Money to your current account - and withdraw the cash or spend it from there.

allsaint

dylanuk wrote: »

I've never heard of a credit card that doesn't allow cash advances - which A&L card is it?

Otherwise yes it would work - but you'd incur quite a lot of handling fees - from the cash withdrawals and then from the balance transfer/s - plus any interest you'd be charged on the cash withdrawals until they were paid back in full.

Can you get an Egg Money credit card? It would be much simpler and cheaper if you can. Basically it allows a positive balance, so you could balance transfer at 0% the credit limit of the Flybe card to Egg Money. Then move the credit in Egg Money to your current account - and withdraw the cash or spend it from there.

Thanks for the reply Dylan. It's the normal A&L card that i've had for a good few years. I paid it off last month and they in their wisdom decided to remove the cash advance facility the day after. It may apparently be reinstated at a later date, how good of them:mad:

I already have an Egg card so if i was to apply for an EM card would i be subject to a credit search? My credit file couldn't take another search at the minute

CannyJock

allsaint wrote: »

i need to get my hands on some money sharpish ... I paid it off last month and they in their wisdom decided to remove the cash advance facility the day after ...

allsaint wrote: »

My credit file couldn't take another search at the minute

Which part of this doesn't sound like desperation from a potential lender's point of view?

Cash advances are generally considered a red flag, so you could be doing yourself more harm than good.

Yes, if you applied for another Egg card they would do a full credit search as before and record this as a search.

So if I understand you correctly, you're proposing to:

allsaint wrote: »

1. use Flybe card for a couple of cash advances from an ATM
2. transfer that amount over to another card
3. then do a balance transfer back onto the Flybe card

From your summary box, you'll notice:

• Cash Advance monthly Interest rate 1.740%
• Interest on Cash Advances is charged from "transaction date" until "repayment in full*" with the added note "
• *If you pay the balance in full, the Interest charge for the period from the previous Statement to the date of the full repayment will be debited the following month."
• Cash Handling Fee:3% or £3, whichever is greater

So for every £100 you withdraw, you'll be instantly hit with a £3 fee. You'll also be charged £0.06 per day from the date of the transaction until the balance is transferred to your other card. So let's say that takes 2 weeks, you'd need to do the BT for £104 to cover the fees and daily interest. The other card will apply their charges, so we'll assume that's another 3% giving you a total of £107.12. You'll need to wait until you get your first FlyBe statement to confirm a nil balance, or small positive balance before you transfer the money back. The transfer back could take another 2 weeks. Unless you have a nil balance on your other card to begin with, you'll be charged say a month's interest, say 1.310%. So that'll be closer to £108.53 you'll need to transfer back. When you transfer that back to FlyBe, they'll charge you their standard BT fee, so another 3% so you're up to £111.79

So that's a £11.79 per £100 for 6 months, or closer to 23.58% APR.

But I'm sure you've already worked that out with the actual APR and fees for the card you're planning on bouncing the balance through.