Cash Advance THEN Balance Transfer.

chris698

Hi.

I'm looking to clear an overdraft due to high fees and I don't qualify for a money transfer card.

Is it possible for me to take out a credit card and take a cash advance and pay the 2.5% fee and then immediately move this debt across to a 0% balance transfer to avoid paying the cash advance interest?

Many Thanks.

bearcat16

Yes.

You'll pay the cash fee, and maybe a few day's worth of interest while waiting for the transfer to be processed, but that will be all.

Remember, though, that credit card cash advances are recorded on your credit file. Some lenders view them as evidence of poor financial management, and have been known to refuse to lend if there are too many.

If you're planning some big application in the next few months like a mortgage or significant loan, cash advances are best avoided.

jonesMUFCforever

If you don't qualify for a money transfer card what makes you think you will get a balance transfer card?
Or do you have an existing card with an offer already?

Marcio45

Jones, from personal experience balance transfer cards are easier to get than money transfers. Barclaycard, for example, will offer BT deals for poor/fair credi scores.

The credit scoring for money transfer cards appear to be strictier or maybee it is the fact that there are less banks/credit card issuers to offer MTs.

chris698

Thanks for the replies.

I've never had issues with 0% purchase or 0% balance transfers but have never been able to get 0% money transfer.

This to me is a very similar way to get the same outcome, just a little bit more long winded.

I'll have a cash advance fee of 2.5% (which is actually cheaper than the set up fees of some money transfers) and then move the whole debt across to a 0% for 24 months balance transfer.

This will save me approx £60pm overdraft fees.

Marcio45

Chris.
Not sure which card you got but normally you also pay a balance transfer fee on top, average is 3%. Unless you BT card has a 0% fee, like Tesco and MBNA are offering on some of their cards at the moment. But either way, you will still save money.

phillw

There is a credit card that in the past allowed you to transfer positive balances into your current account. Most will want to refund the money to the card it came from. That is probably a better idea than using a cash advance. I don't know what the card was or if it's still available, but it was mentioned on here.

However there is no reason why you can't setup the money transfer and then withdraw it from a cash machine as soon as it arrives in your account, so you won't pay any interest.

Ben8282

£60 per-month overdraft fees??? How big is this overdraft ....
There is nothing wrong as such with your idea but remember you will pay 3% cash advance fee.
Also remember the cash advance limit may be less than your total credit limit, perhaps only 50% of the total limit. Something to be remembered as your overdraft must be pretty large.