Using Credit Card for Cash flow

gregmcdonnell1

Hi,

I know that this would not be recommended but in order to get some tempo cash flow is it possible to withdraw cash from a credit card and then immediately transfer that balance to a 0% credit card for a few weeks before paying that off too.

I'm only talking about £1500, I guess that would have to be withdrawn over a few days?

Guess I'm asking whether the card that I transfer he balance to recognises that cash has been withdrawn on the balance I am moving to them ? Or do they just pay the balance as a whole and not look whether it is purchases, cash ?

Thanks

aldredd

Sure someone can give better advise that me, but a couple of points to consider;
1) Most CC's limit the amount of cash you can withdraw (most of mine are set as a % of available balance)
2) It usually shows on your credit file that you've withdrawn cash. One-off may not be so bad, but regularly doing so could be problematic

JakeGreen

As above, most credit cards will have a set limit of how much cash you can withdraw, I have between 30% and 50% on my cards.

It hurts your credit file because cash withdrawals are viewed negatively as a sign of desperation.

It is also quite an expensive way to go about it, because you will be charged a fee of around 3% for everything you withdraw, the interest on cash withdrawals is normally higher, then you have the balance transfer fee.

Having said that, it'll be cheaper than a pay day loan especially if you get to transfer it to 0%.

It really is a last resort, as it could lead you into deeper water.

Good luck!

grumbler

gregmcdonnell1 wrote: »

Guess I'm asking whether the card that I transfer he balance to recognises that cash has been withdrawn on the balance I am moving to them ? Or do they just pay the balance as a whole and not look whether it is purchases, cash ?

It's the latter.

And I don't see any point in paying the money back until 0% expire.
Just keep it in a savings account and make payments a fraction bigger than required minimum payment.

john1002

also you will be a charged a higher interest rate for the cash withdrawal and from the first day it is debited, so the longer it takes to BT the more interest you will be charged, this will also include any purchases that may be on the card, hence why cash withdrawals are not recommended especially if you already have a balance on the card.

john