Credit Card offering Lump Sum?

DragonTuning

Morning all,

Not sure if there is a proper term for what I am trying to describe.

Basically I called my CC company to ask whether I had the facility to transfer available credit from CC as cash to my bank account.

She said at the time I did not, but as of this Friday, I will be eligible for a new offer where I can have up to 90% of credit limit as a lump sum interest free for 9 months.

This sounds like a good deal as I desperately need a few hundred to use for a rental deposit.

Does anybody know of any catches or any reasons why this would be too good to be true? She was quite open about the fact that if the money has not been paid back after 9 months it will go onto my CC rate of 15% interest.

Cheers,

Adam

Tixy

Did she say what the fee will be to transfer the money?
How long do you expect it will take you to repay the amount you needed to borrow?

DragonTuning

Tixy wrote: »

Did she say what the fee will be to transfer the money?
How long do you expect it will take you to repay the amount you needed to borrow?

Come to think of it no.

I would hope only a couple of months at the most.

Perhaps the charges should be my first query next time I call them

Tixy

It might be around 4%, which can work out as a decent APR if you are likely to take the full interest free period to pay it back.
But if you are going to only borrow for a couple of months it might work out cheaper to consider using an overdraft (if that option is available to you).