Any advice gratefully received! 2 July 2011 at 6:25PM in Stoozing: free cash from credit cards 3 replies 965 views

isthisfree

Hello!
I've asked a similar question before but have confused myself!
I've just managed to get 0% BT for 19 months Barclaycard and have made one transfer from Santander card. I'm also thinking of doing the following but don't know if I can- please advise!
Pay Next balance with HSBC card (currently empty as I've just asked for replacement one to be sent through for this purpose), then withdraw £600 cash (over 2 days) on HSBC card (to pay into current account to clear overdraft), then transfer HSBC balance to Barclaycard so no interest on Overdraft or Next account.
Is paying a bill like Next with c c counted as a cash withdrawal or normal transaction?
Will HSBC allow me to put the £600 cash into account when its obvious it's come from cash withdrawal? (this might be a stupid question?!)
Any advice gratefully recieved!

smartiedriver_2

Hi.

If you ring Next and pay over the phone with the credit card (or online if it lets you) then this is treated like purchasing something, NOT a balance transfer.

RE the cash withdrawal from the HSBC card, if you have an HSBC current account you can ring card services and get them to transfer the £600 'cash' from the card to the account - same cash withdrawal fees apply, but may be quicker for you, and it's transparent. If you withdraw then pay in it will be just as obvious to them.

Technically it makes no difference, but I'm always of the opinion if you make it obvious you aren't hiding anything then they can never be suspicious.

So basically, the answer to your question is YES you can do that!

smartiedriver_2

PS - make sure you cancel the O/D once paid off or you will be tempted to run it up again

bottleofred

Hi isthisfree,

Some of the interest free cards also have 0% purchases for a short period of time, so if you cleared the next account then depending on the terms of your card, it would either be a straightforward purchase and charged at the rate of interest on the card or may be a 0% purchase if your lender allowed that facility when you took the card. Borrowing cash from credit cards is very expensive, so think carefully before using it to clear the overdraft. You need to work out what is going to be the cheaper/better option.