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Cash ADVANCE??

Mrs_Optimist
Posts: 1,107 Forumite
in Credit cards
We are going on holiday soon and I need to change up some currency. If I use my credit card (0% on purchases) to buy the currency would this be classed as a cash advance? I was thinking of keeping the funds I already have to change up in my bank account to earn interest and use the "free" money whilst it is 0% and then paying the card off in full when the 0% is about to expire next Summer, just a nice way of earning some interest!! I thought I could also use this method for cashback at the supermarket rather than taking the funds from my bank account and earn interest on that money too. I am very disciplined so there is no chance that I would spend the money in my bank account, would just leave it in there to earn interest.
What do you think?????
What do you think?????
0
Comments
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If I use my credit card (0% on purchases) to buy the currency would this be classed as a cash advance?
Yes I believe it is classed as a cash advance and not a purchase so be careful.I thought I could also use this method for cashback at the supermarket rather than taking the funds from my bank account and earn interest on that money too.
It's a good plan as long as
1) you are disciplined and don't spend the money
2) you stick to purchases and not cash advances
3) you make the minimum payments each month
4) you don't make late payments or go over your limit (0% can be revoked if you are in breach of the terms and conditions of your card
5) you make sure you pay it off in time
Whether it's all worth it after that (and remember you savings will be taxed) is up to you.
I have to pay 40% tax on my savings so it's not really worth the hassle.0 -
Mrs_Optimist wrote:What do you think?????
Supermarket cashback - not possible with a credit card.0 -
Thanks guys, wasn't sure if it would be possible and it seems not - too much hassle. Thanks again for your advice!!0
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Cashback is only available on debit cards.... for debit cards the merchant pays a fixed fee irrespective of how much the transaction is so it makes no odds to them if you pay £50 by card or £50 and £50 cash back - in many ways it is better for them to get rid of cash from their tills this way rather than having to cash up. On credit cards they pay a percentage of the transaction total and therefore by adding cash back they would have to pay extra fees.
Buying foreign currency varies between card issuers but the majority count it as a cash advanceAll posts made are simply my own opinions and are neither professional advice nor the opinions of my employers
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cashback at the supermarket
Sorry I didn't read it properly.
I thought you mean purchases at the supermarket and not cashback.0 -
If you have a Lloyds TSB credit card then you can use the credit card to order currency with Lloyds Travel Money Hotline (click on the link below) and it will be treated as a PURCHASE not CASH ADVANCE, and the currency can be delivered to your local branch for free for pick up next day! If you want it to be delivered to your home then there is a charge. I have done this last time when I went to Europe, basically got 500euro out from Lloyds and only need to pay back when the credit card bill comes!
http://www.lloydstsb.com/travel_main_page.asp0
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