transferred too big a balance - use as cash?

bigsmoke

Hi All

a couple of months ago i got a new 0% barclaycard so transferred 2 existing balances on to it.
completing the transfers online i was told that there was a problem with one of them so i did it again a few days later, no worries.

what seems to have happened is that the transfer has gone through twice, so my old card is now significantly in credit (£3k). I was told I could fill a form in to reverse the transfer but was wondering whether I could actually use this as 'cash' to pay off two overdrafts, which are incurring interest (not that much, but it's still £30 a month between them) instead?

I've learn from the site that using credit cards for cash is one of the worst crimes one can commit (!) but if it's showing on my account as credit, and i'm not paying interest on it on the new card, am I likely to be penalised in any way for doing this?

many thanks for any advice you can give - I have a niggling feeling that there's something wrong with this idea but I can't see what it could be at the moment

BS x

CLAPTON

depends upon the T&Cs of your card

why not simply use the card for all your 'normal' shopping so leaving more money in your a/c and so reducing your OD albeit more slowly

chexum

You probably can use it, but not the way you wanted (or not as simply). Some card issuers consider the credit card going into credit a serious issue, often even blocking the card until sorting out why it happened. Cash withdrawals still incur a cash advance fee, even if it "looks" your money. They usually offer to send a cheque to get rid of the positive balance, but it can take 1-2 weeks, plus the time it takes to clear, so it's not overnight.

Do you still want to use it, instead of admitting it was a mistake?

YorkshireBoy

bigsmoke wrote: »

I was told I could fill a form in to reverse the transfer...

By whom?...the card taking the debt or the one now in credit?

but was wondering whether I could actually use this as 'cash' to pay off two overdrafts...

Yes, possibly*.

I've learn from the site that using credit cards for cash is one of the worst crimes one can commit (!) but if it's showing on my account as credit, and i'm not paying interest on it on the new card, am I likely to be penalised in any way for doing this?

You're very likely to incur cash withdrawal fees, and possibly damage your credit rating as cash withdrawals are now specifically reported to the CRAs.


* A call to close the account may generate a transfer of funds straight to your current account, or maybe they'll send a cheque. I appreciate you may not want to name the card with the credit balance but to get the best (ideally anecdotal) advice you may have to.

bigsmoke

YorkshireBoy - it was the company with the card in credit who advised me to complete a form to reverse the transfer (something to do with the inland revenue, or revenue and customs or something?). and yes, they did stop the card when it happened, that's how i found out that the mistake had been made!

thanks everyone for the advice re. cash withdrawals, sounds like this is likely to end up being a painful option both in terms of fees and any hopes i may have of buying a home.

I don't still want to use the card so could just close the account and ask for a cheque, as stated (thanks chexum). Is this likely to look any better or worse than completing the transfer reversal (which, to be honest, sounds like it may be a fair hassle - haven't had particularly simple experiences of credit card customer services in the past. should learn my lesson really and stop using them eh?!)

thanks again everyone

bs x

bigsmoke

ps - CLAPTON, it's an m&s card so that would certainly be a good way of racking up lots of discount vouchers!! but feel like i would like to take a more 'positive' action in case i'm ever asked about it during any credit check process...

Fruit_and_Nut_Case

bigsmoke wrote: »

it's an m&s card

Good! I think you can still buy Sterling Travellers Cheques from M&S with no commission. Then cash them at your bank. Voila!

bigsmoke

ooh, good tip fruit and nut case - thanks!

YorkshireBoy

Fruit_and_Nut_Case wrote: »

Good! I think you can still buy Sterling Travellers Cheques from M&S with no commission. Then cash them at your bank. Voila!

1% fee applies. That's if the card is not still locked?

A reversal of the BT may be free?

Fruit_and_Nut_Case

YorkshireBoy wrote: »

1% fee applies.

Sorry, I thought it was free. Still, it may be worth considering.