Making money from credit card cheques?

anoraknerd_2

Hi

We have a credit limit of over £10,000 on the Conran card taken out just before they stopped their cashback and now not used. They have now offered us cheques interest free until our March 2008 statement. Could I pay our entire limit into a high interest bank account (6.1%) and pocket the difference between the "up to 3 % charge" on the cheque and the interest (less tax obviously). Am I missing something, or would this work to make a bit of cash?

andyelcomb

Sure you can.
I'm doing the same with my MBNA card cheque for £11875, except I'm using it to pay a chunk off my mortgage and will clear the balance come March from savings account funds. That'll save me nearly £385.
The 3% unlimited fee is a bit steep but with interest rates as they are putting it into your 6.1% gross account will net you about £134 assuming £10000 used.
Care though - does it say 95% of limit? Don't get greedy and try for more.

Andy

johnllew

andyelcomb wrote: »

Don't get greedy and try for more.

Andy

You could try negotiating with them to have the fee capped or even waived. They are sometimes favourably influenced if you have a very large credit limit and take as much as possible. Also it might be worth asking if the cash can be transferred direct to your account by BACS rather than having to write out a cheque.