Cash on credit card

falconer2406

Hi All i am looking to get 8k as either loan or on a CC i have a perfect credit rating and a couple of credit cards with small balances, I haven't paid interest on a CC for years.

My plan is to take out 8k cash on an existing CC and then apply for a new one at 0% interest and then transfer the balance. has anyone ever done this? it seems to simple to me ! Do CC companies allow this to happen or do they recognise that cash has been taken and apply interest immediately. Anyone any other ideas?
Thanks in advance all.
Cheers

CLAPTON

with a perfect credit score one would have thought you might get a cheap loan
but yes in principle your plan can work

[Deleted User]

You'll pay a fee and interest from day 1. So expensive even if you can then BT it.

grumbler

falconer2406 wrote: »

My plan is to take out 8k cash on an existing CC and then apply for a new one at 0% interest and then transfer the balance.

I suggest applying and getting accepted first. And beware that cash limit can be lower than the credit limit. I assume you know that normally it costs ~3% to withdraw cash.

Do CC companies allow this to happen or do they recognise that cash has been taken and apply interest immediately.

Of course they recognise and apply, but I don' see why this can be a problem if you can transfer the balance.

Anyone any other ideas?

See MSE's money transfer guide

bengal-stripe

falconer2406 wrote: »

.....i have a perfect credit rating

Even with the very best credit rating, you might have difficulties taking out a new card with a limit in excess of 8k not only once, but twice.

falconer2406

bengal-stripe wrote: »

Even with the very best credit rating, you might have difficulties taking out a new card with a limit in excess of 8k not only once, but twice.

Thanks everyone i appreciate your replies.
Bengal my current card (Halifax) has a 12k limit with a small balance and i have just been accepted and received a new Bank of Scotland card again with a 12k credit limit that's why i thought i would take the cash on the Halifax card and then immediately transfer the balance to the new RBS card, even if its 3% to borrow the 8K thats only £240 in charges and then 0% for the rest of the loan, i can pay it off over the interest free period that applies to the new card. My worry was would RBS recognise the transfer as a cash advance and then charge me interest?

grumbler

It's 3% + BT fee.

RBS just transfer money to Halifax and have no idea (and can't care less) what's going on there.

falconer2406

grumbler wrote: »

It's 3% + BT fee.

RBS just transfer money to Halifax and have no idea (and can't care less) what's going on there.

Grumbler, That's an interesting point you make 3% = £240 and then the balance transfer fee is also 3% so it would cost me £480 if that's correct I think a loan with Hitachi will be cheaper!

grumbler

falconer2406 wrote: »

..., That's an interesting point you make ...

My apologies for stating the obvious

YorkshireBoy

falconer2406 wrote: »

Thanks everyone i appreciate your replies.
Bengal my current card (Halifax) has a 12k limit with a small balance and i have just been accepted and received a new Bank of Scotland card again with a 12k credit limit that's why i thought i would take the cash on the Halifax card and then immediately transfer the balance to the new RBS card, even if its 3% to borrow the 8K thats only £240 in charges and then 0% for the rest of the loan, i can pay it off over the interest free period that applies to the new card. My worry was would RBS recognise the transfer as a cash advance and then charge me interest?

I foresee some major problems with your plan...

1. At a standard 50%, your cash limit (check your T&Cs/ring them to find out) on the £12K Halifax card will leave you £2K short of your £8K requirement.

2. It's unclear whether you've obtained a BoS (Bank of Scotland) credit card or an RBS (Royal Bank of Scotland) credit card, since you mention both in the same sentence! On the basis that RBS have stopped doing 0% BT cards I suspect you have the BoS credit card? If that is the case you won't be able to transfer the Halifax balance to BoS since they're both issued/underwritten by Bank of Scotland PLC.

Other than that, it sounds like a good plan!

jpwjpw

grumbler wrote: »

It's 3% + BT fee.

+ interest on the cash advance until the balance transfer is done.

Also, don't most cards limit you to a £500 a day withdrawal? So it would take you 16 days to withdraw £8k, so this is an absolute minimum of £50 interest (at an example of 30% APR on a cash advance).

I think there are definitely cheaper ways to borrow....