Cash advance for limit increase??

AjayVerma316

Hi, all. I have just recieved my Barclaycard with a Credit limit of 500. If i take a cash advance for 450 every month and pay back the full balance including the interest from the cash advance and the cash handling fee, would this help me increase my credit limit quicker?? Has anybody tried this??

Reaper

Not generally a good idea to do cash advances on a credit card. I believe on Barclaycard they will charge you 2% (min £2), a higher rate of interest than for purchases, any 0% deal won't apply to it, and the interest is charged daily from the date you got your advance - so it will cost you even if you pay it off in full when your statement arrives.

As you are proposing to pay it off imediately you will escape most of that, apart from the £10 cash advance fees (2% of £500) every time.

Even if you do your idea I doubt it will count more than once a month, and companies do not usually entertain the idea of offering you an increase in the first few months no matter what you do.

Better to just use it for normal spending and be patient I reckon.