Getting cash from a credit card

mcfc4eva

I applied for an increased overdraft for some extra spending money for when I go on holiday to Valencia at the end of the month and unfortunately got declined.

I then got offered a credit card with no introductory offer and a 18.9% APR on purchases and balance transfers. The limit is just £500. From reading the T&C's, it seems I can transfer money from my credit card to my current account at the same 18.9% (and no fee that I can find). The card is from NatWest (do all their credit cards allow "money transfers" to current accounts?).

I accepted NatWest card and I'm just waiting for it to arrive.

Meanwhile I've been looking at other credit cards and have seen the "Classic Barclaycard" with a 0% APR on balance transfers until Sept '11.

I was thinking, could I use the NatWest credit card as a "middle-man" in order to get some cash in my current account at 0% APR?

Here's how I was thinking of doing it;

- Transfer money from my NatWest credit card into my NatWest Current account.

- Transfer the balance from the NatWest CCard to the Barclaycard to take advantage of the 0% APR. I would do this on the same day or as soon as possible to minimise any interest incurred by NatWest.

- Pay off the barclaycard, keeping to (at least) their minimum payment and ensuring it is payed off in full by September next year and not using the barclaycard for anything else until then.

I can't find out what the maximum I could transfer from my NatWest CCard to my current account, although I've heard they cap it at 50% of the credit limit (£250), in which case - could I do what I explained above and then once the balance on the NatWest CCard is back to £0, repeat the process to get a total of £500 (£250 x twice)? I ask because I am looking to get £500 cash in total.

There is of course the 2.5% fee for balance transfers, which I calculate to be £12.50 for the whole £500.

In summary, can I do as above and only have to pay £512.50 back by September next year?

Any insight into this would be much appreciated.

Thank you,
Michael

Curt.

mcfc4eva wrote: »

I then got offered a credit card with no introductory offer and a 18.9% APR on purchases and balance transfers. The limit is just £500. From reading the T&C's, it seems I can transfer money from my credit card to my current account at the same 18.9% (and no fee that I can find).

Good job you asked, you wre looking at the wrong section of the T&C, you were looking under "fees" which only covers annual fees and re-occuring or one off fees not dependant on usage, i.e. non variable.

Other such fees are shown under the "charges" section of T&C's:

http://www.natwest.com/downloads/personal/cc_Platinum_summary.pdf

That is due to the fact that a fee is defined as such:

1. A fixed sum charged, as by an institution or by law, for a privilege: a license fee; tuition fees.

The fee is for the licensing itself, to you, for the product itself, i.e. the card and the facility.

The charges are exactly that, charges which would mean its your execution of the entity (i.e. "use" of it) that determines it.

http://www.thefreedictionary.com/fee

The card is from NatWest (do all their credit cards allow "money transfers" to current accounts?).

No, not at all. If you are looking for a card, that has no fee for cash advances or transfers to bank accounts, good luck. However MBNA offer loads with a zero % offer for upto 13 months on some, with a small fee though which would be a better bet.

If you have just been searched by Natwest though and as its a small limit i would say almost certainly, dont apply for anything else, especially given your O/D request was declined too.

Obviously, you can forget about the rest of your idea as it wont fly.

Sorry i didnt mean it to sound flippant above, put that down to a bad day but i really hope you do read this thread again and don't end up transferring money to your bank account with the CC, and i am glad you asked. Its a rookie mistake but knowing about it in advance has saved you a lot of potential trouble down the line.

mcfc4eva

Hey Curt.

Thanks for your reply.

Good job you asked, you wre looking at the wrong section of the T&C, you were looking under "fees" which only covers annual fees and re-occuring or one off fees not dependant on usage, i.e. non variable.

Other such fees are shown under the "charges" section of T&C's:

I looked under Charges too and can't find any fee's for the "money transfers". They do have a 2.75% fee for transfers in foreign currency and they also have a 3% fee for "cash advances". Does a standard transfer come under one of these? Even if it does, 3% of £500 is only £15. This means I will be paying back £500 (debt) + £15 (fee from NatWest) + £12.50 (fee from Barclaycard) = £527.50 within the next 12 months - which still isn't bad, or am I missing something else?

P.S.
Just for the record here are the cards;
NatWest Student Credit Card
Barclaycard Classic Credit Card

I can't post links yet, so just google them to find the T&C's.

Thanks again,
Michael

td_007

mcfc4eva wrote: »

Hey Curt.

Thanks for your reply.

I looked under Charges too and can't find any fee's for the "money transfers". They do have a 2.75% fee for transfers in foreign currency and they also have a 3% fee for "cash advances". Does a standard transfer come under one of these? Even if it does, 3% of £500 is only £15. This means I will be paying back £500 (debt) + £15 (fee from NatWest) + £12.50 (fee from Barclaycard) = £527.50 within the next 12 months - which still isn't bad, or am I missing something else?

P.S.
Just for the record here are the cards;
NatWest Student Credit Card
Barclaycard Classic Credit Card

I can't post links yet, so just google them to find the T&C's.

Thanks again,
Michael

Your plan is ok in principle. The best thing to do is call and ask Natwest re charges if any for bank transfer and the max amount you can transfer. Given that you have recently applied for a card and you have a rather low limit, getting a 0% card is a looks rather tough.

Curt.

mcfc4eva wrote: »

Hey Curt.

Thanks for your reply.

You're welcome...

I looked under Charges too and can't find any fee's for the "money transfers". They do have a 2.75% fee for transfers in foreign currency and they also have a 3% fee for "cash advances". Does a standard transfer come under one of these?

Yes, under Cash Advances. (You transfer money to your bank account that's what they will classify it as).

Even if it does, 3% of £500 is only £15. This means I will be paying back £500 (debt) + £15 (fee from NatWest) + £12.50 (fee from Barclaycard) = £527.50 within the next 12 months - which still isn't bad, or am I missing something else?

Yes, something, which is crucial. The fees they will charge, will add on, immediately from what i understand. (Not the interest). If you do it, make sure you dont max out or get close to the limit, if you do it twice, because the charges will make you default. Make sure you transfer the balance first from the first bank transfer.

But yes otherwise the math is correct, however it will still work out to at least 600 or so you end up paying back for 500 in cash.

P.S.
Just for the record here are the cards;
NatWest Student Credit Card
Barclaycard Classic Credit Card

I can't post links yet, so just google them to find the T&C's.

Thanks again,
Michael

Yeah Natwest's cards are all similar enough in T&C.

YorkshireBoy

Curt. wrote: »

Yes, under Cash Advances. (You transfer money to your bank account that's what they will classify it as).

NatWest 'money transfers' are fee-free*, and the interest charged is, for new customers at least, the standard purchase APR...so around [STRIKE]16.9%[/STRIKE] 18.9% on the Student Card.

So, the OP has a perfectly workable plan with minimal costs if the timing is well planned.


* As the OP has correctly identified they are capped by the advance limit, generally 50% of the credit limit. OP should check his own T&Cs to be sure.

Curt.

They are not fee free, i just rung them up and asked if i would be charged a fee and they said yes...(though i don't know, that may be because my card is quite old and they charged back then for money transfers).

They even stated they would bill it as a cash advance.

mcfc4eva

Curt. wrote: »

But yes otherwise the math is correct, however it will still work out to at least 600 or so you end up paying back for 500 in cash.

Hey Curt,

If my maths is correct (I worked it out I would pay back £527.50) like you say, why would I be paying back £600 'or so'? Either my maths is correct and I pay back 527.50 or my maths isn't correct?

Michael

mcfc4eva

YorkshireBoy wrote: »

NatWest 'money transfers' are fee-free*, and the interest charged is, for new customers at least, the standard purchase APR...so around [STRIKE]16.9%[/STRIKE] 18.9% on the Student Card.

So, the OP has a perfectly workable plan with minimal costs if the timing is well planned.


* As the OP has correctly identified they are capped by the advance limit, generally 50% of the credit limit. OP should check his own T&Cs to be sure.

Curt. wrote: »

They are not fee free, i just rung them up and asked if i would be charged a fee and they said yes...(though i don't know, that may be because my card is quite old and they charged back then for money transfers).

They even stated they would bill it as a cash advance.

I just called NatWest. I was told other than interest and late payment etc, there are NO charges/fee's for transferring to a current account. They also confirmed that the maximum I can transfer at any one time is £250 (50%).

izools

mcfc4eva wrote: »

I just called NatWest. I was told other than interest and late payment etc, there are NO charges/fee's for transferring to a current account. They also confirmed that the maximum I can transfer at any one time is £250 (50%).

There you go. Awesome, I think we've just found a new "Mule" card for Stoozing?

FYI if you do get approved for a bal. transfer card you normally have 60 days to do transfers in so you can "shunt" several blocks of £250 in that time if you so please.

One of the easiest balance transfer cards to be approved for at the moment is the Sygma Silver card which only offers 6 months at 0% APR, but given you were only approved for a small limit with Natwest I think it's the best you can hope for given your current credit standing

Good luck!

YorkshireBoy

izools wrote: »

I think we've just found a new "Mule" card for Stoozing?

It was "found" a long long time ago, and that's why I was so sure when I posted earlier in the thread.

Thing is, for stoozers at least, it was never required because Egg Money was/is(?) such a good product.