Can't transfer from CC > Bank, an alternative solution?

J7M

Hi guys,

I need to transfer £500 from my Barclaycard Credit Card to my current account - however they won't let me do this, and I don't believe the Indian man I spoke to who insisted that the only charge I will incur will be the 3% (or similar) added to the actual transfer... I'm sure that this goes as a cash withdrawal on top of my current credit, and any money I pay goes off that first - something along those lines. I pay back £100 a month and don't want huge charges adding up over the months if I get something wrong.

Basically - I have another credit card with Santander with nothing on it, and my Barclaycard has a 0% balance transfers offer until October 2014. Am I right in thinking I can do the following to skip on the ongoing charges?

- Withdraw £500 cash on my Santander card.
- Immediately perform a balance transfer of £500 + the charges incurred for the cash withdrawal between my Santander and Barclaycard.

So basically using my Santander card as a proxy to avoid on-going fees. Will this help me avoid those charges (apart from the actual withdrawal 3% or whatever it is) because it'll actually be a balance transfer by the end of it?

Cycrow

The on going fees for cash withdrawal are just interest, the same as with purchases. So once the card is cleared, there will be no more interest to pay.

when you do a balance transfer, you will also pay a fee for that, so remember to include that in your calculation.

barclaycard do offer a way to tansfer into a current account, but its separate to a normal balance transfer and isn't always available

grumbler

Cycrow wrote: »

The on going fees for cash withdrawal are just interest, the same as with purchases.

This is a very confusing statement.

Cycrow

how is it confusing ?

when you withdraw cash, you then pay ongoing interest until its cleared.

grumbler

You also pay a cash advance fee, not 'just interest'.

Cycrow

the cash advance fee isn't an ongoing payment thou.

the OP was talking about how to reduce the ongoing monthly payments (which is the interest)

grumbler

OK, I see now what you meant.

InsideInsurance

J7M wrote: »

So basically using my Santander card as a proxy to avoid on-going fees. Will this help me avoid those charges (apart from the actual withdrawal 3% or whatever it is) because it'll actually be a balance transfer by the end of it?

You could do this but there is no interest free period with cash advances and so there will be interest to be paid for the period between you initiating the transfer and the monies hitting your Santander card

mrsbrayne

Just an idea but if you transfer to Santander nil balance card then withdraw the cash it is not "an advance" as you would be in credit so may not involve a "cash advance fee".

You wouldn't be charged any interest as at no point have an amount outstanding.

grumbler

mrsbrayne wrote: »

Just an idea but if you transfer to Santander nil balance card then withdraw the cash it is not "an advance" as you would be in credit so may not involve a "cash advance fee".

Do you know this or just think so?

And it's against the T&C to put a CC in credit, although you can get away with this.

mrsbrayne

Apologies on Santander they call it a "cash transaction fee" therefore the word advance has no significance.

I would be interested to know where in T&C it states you can't have a positive balance, although if withdraw cash on same day transfer received balance would be Nil at end of banking day.