Extracting cash from an Interest Free Balance Transfer offer

Options
izools
izools Posts: 7,513 Forumite
Combo Breaker First Post
edited 16 February 2013 at 8:00AM in Credit cards
I already posted about this in the Sub Prime Credit Thread VI but wondered if anyone else had any further suggestions?

OH had a load of credit card balances which he wanted to get at 0%. He duly applied for the Barclaycard 0% for 25 Months offer, however at the end of the application he didn't get a decision.

Off the back of this he took out a Bank Loan, which whilst is at a much lower rate than his cards were, isn't 0% by any means.

Barclaycard have now decided to approve the application with a suitable limit, but of course his credit cards are now at £NIL.

Yes, he should have waited until he got a final decision from Barclaycard before consolidating the debt elsewhere, but what's done is done :o

Now, taking advantage of 0% for 25 Months with no outstanding balances on credit cards... I had two options so far:

1. Have him pay pal me the money from his other credit cards and do the balance transfer off them to Barclaycard, I can then withdraw the PayPal funds and send them back over to his back account for him to settle the loan.

2. He could spend say for example £50 on one of his credit cards, then balance transfer £5,000 to it, and call them up asking that they refund the difference to his bank account as he typed in too many zeroes "by accident" when paying off the card.

His other cards are from Creation (Sygma). He also had a Naionwide card but this is now closed.

If anyone has any thoughts or insight they could share we'd appreciate it.

Thanks! :o

EDIT: Are there any Prepaid Cards that have that extra facility - for people who are a bit special - of using it for standing orders and direct debits?

We could top up the Prepaid card using his creation card, transfer the resultant balance to his Barclaycard, and then use the Standing Order facility on the Prepaid card account to transfer the funds to his bank account?

There would probably be a 1.75% top-up fee but it would be less than the Pay Pal fee...

It's CashPlus Gold that supports Standing Orders isn't it?
Cashback Earned ¦ Nectar Points £68 ¦ Natoinwide Select £62 ¦ Aqua Reward £100 ¦ Amex Platinum £48
«1345

Comments

  • BugsyBrowne
    BugsyBrowne Posts: 5,697 Forumite
    Options
    Hi izools I'm sort of in exactly the same position where my OH wants to pay off her Barclays loan and I have a Barclaycard which is offering me 6.9 LOB and a Nationwide credit card 0% and both of these have very small balances on.

    Do you suggest she putting something on eBay for £4000 on BUY IT NOW and I obviously buy it? Would this work?
  • izools
    izools Posts: 7,513 Forumite
    Combo Breaker First Post
    Options
    I had thought of that but the final listing fee on ebay is 10% of the sale price.

    Also I ideally want to find a solution that isn't out and out fraud.

    I think I will test the waters with putting a Creation card in credit first of all, and go from there if they won't have it.
    Cashback Earned ¦ Nectar Points £68 ¦ Natoinwide Select £62 ¦ Aqua Reward £100 ¦ Amex Platinum £48
  • BugsyBrowne
    BugsyBrowne Posts: 5,697 Forumite
    Options
    izools wrote: »
    I had thought of that but the final listing fee on ebay is 10% of the sale price.

    Also I ideally want to find a solution that isn't out and out fraud.

    I think I will test the waters with putting a Creation card in credit first of all, and go from there if they won't have it.

    What about travellers cheques?
  • izools
    izools Posts: 7,513 Forumite
    Combo Breaker First Post
    Options
    You know, I'd come to pretty much the same conclusion.

    You can get Stirling travellers cheques from Tesco and M&S.

    I think this will be the most pain-free option :o
    Cashback Earned ¦ Nectar Points £68 ¦ Natoinwide Select £62 ¦ Aqua Reward £100 ¦ Amex Platinum £48
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Name Dropper First Post First Anniversary
    Options
    izools wrote: »
    You can get Stirling travellers cheques from Tesco and M&S.
    They're only treated as purchases if you use their own credit cards though.

    Any other credit card providers will treat them as a cash transaction, ie circa 3% fees, cash interest (until you can BT the debt on), and possibly subject to an 'advance' limit.

    Might be cheaper overall, once fully transferred, but a lot of hassle!

    If you do go this way, be sure to check your bank accepts them before purchasing.

    And don't forget that a lot of cash advances will negatively affect one's credit rating (for a while at least).
  • BugsyBrowne
    Options
    They're only treated as purchases if you use their own credit cards though.

    Any other credit card providers will treat them as a cash transaction, ie circa 3% fees, cash interest (until you can BT the debt on), and possibly subject to an 'advance' limit.

    Might be cheaper overall, once fully transferred, but a lot of hassle!

    If you do go this way, be sure to check your bank accepts them before purchasing.

    And don't forget that a lot of cash advances will negatively affect one's credit rating (for a while at least).

    Well that's that idea gone out the window then.
  • izools
    izools Posts: 7,513 Forumite
    Combo Breaker First Post
    Options
    They're only treated as purchases if you use their own credit cards though.

    Any other credit card providers will treat them as a cash transaction, ie circa 3% fees, cash interest (until you can BT the debt on), and possibly subject to an 'advance' limit.

    Might be cheaper overall, once fully transferred, but a lot of hassle!

    If you do go this way, be sure to check your bank accepts them before purchasing.

    And don't forget that a lot of cash advances will negatively affect one's credit rating (for a while at least).

    Are you absolutely sure that both Tesco and M&S report Traveller Cheque transactions as Cash to non-own branded credit cards?

    Either their POS system post them as Cash, or post them as Purchases, such systems can't be programmed to post the transaction with a different identifier depending on the BIN of the card surely?

    The quandary continues...

    One saving grace is that thankfully Creation don't report extended data against their credit cards so any cash advances won't be reported to the credit reference agencies :o
    Cashback Earned ¦ Nectar Points £68 ¦ Natoinwide Select £62 ¦ Aqua Reward £100 ¦ Amex Platinum £48
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Name Dropper First Post First Anniversary
    Options
    izools wrote: »
    Are you absolutely sure that both Tesco and M&S report Traveller Cheque transactions as Cash to non-own branded credit cards?
    Yes. The T&Cs are on their respective websites' Travel Money sections (and also mentioned in the cards' T&Cs/benefits summary).
    Either their POS system post them as Cash, or post them as Purchases, such systems can't be programmed to post the transaction with a different identifier depending on the BIN of the card surely?
    It's not difficult.

    Fundamentally it's cash, but each of the above internally treats it as a purchase with respect to fees and interest and suppresses the 'cash' MCC, replacing it with a 'purchase' MCC.

    However, Tesco, whilst treating it as a purchase transaction, apply the advance limit (in my case it's 30%...others may be different) to the maximum transaction value. M&S, as far as I know and based on my multiple experiences of this loophole some years ago, do not apply such an advance limit.
  • BugsyBrowne
    BugsyBrowne Posts: 5,697 Forumite
    Options
    Anyone else got any IDEA's how best to use my 6.9% LOB or 0%Nationwide card to pay off my missis loan?

    Can I ADD funds into my paypal account from CC and withdraw from my linked bank account t on paypal???
  • izools
    izools Posts: 7,513 Forumite
    Combo Breaker First Post
    Options
    Its looking more and more like Paypal is the best aolution huh? I will call Creation tomorrow or monday and find out their attitude to repaying credit balances and post back. If they get really funny about it I will use Paypal. To answer your question you cant put your paypal account in credit with a credit card, you need to pay someone else and have them withdraw the funds to their bank and transfer it over to your bank account :o
    Cashback Earned ¦ Nectar Points £68 ¦ Natoinwide Select £62 ¦ Aqua Reward £100 ¦ Amex Platinum £48
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 343.7K Banking & Borrowing
  • 250.2K Reduce Debt & Boost Income
  • 450K Spending & Discounts
  • 235.9K Work, Benefits & Business
  • 608.9K Mortgages, Homes & Bills
  • 173.3K Life & Family
  • 248.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards