Credit cards over a loan

Ben8282

robpost wrote: »

Terry not sure what you mean by whether you mean regardless if the balance is cleared or not. Why would there be interest if the balance is cleared?

Because there is NO interest free period on cash withdrawals. You will pay interest from the date of the withdrawal until the amount is repaid irrespective of whether you make full repayment of the balance each month or not.

robpost wrote: »

Not trying to avoid minimum payments at all. Want to pay the balance in FULL every month (including interest and fees) with credit on cards B. A is used, end of the month its paid off in full by B, end of next month and B is paid off in full by A...so on an so forth.

Why? If you believe this will increase some mythical credit score or credit rating think again. All the cash withdrawals every month will look very bad indeed.

robpost

Thanks for the responses. Great site.

Honestly dont think I'll have to do this. Just a thought I had after getting accepted pretty easily with two cards. I've just received one and the credit limit is more than double what I was told it would be in branch. Obviously its far from free money and not for long term needs amongst other disadvantages but cards seem like an easier way of building small credit if need be. I didn't have this experience with loans and got declined every time for pretty much the same amount I've just received with cards. Might be because I didn't call or go in personally though.

Good to have some backup plans prepared and wanted to see what this community thought. Expensive backup plan is better than none at all.

Thanks again.

Terry_Towelling

robpost wrote: »

Thanks for the responses. Great site.

Honestly dont think I'll have to do this. Just a thought I had after getting accepted pretty easily with two cards. I've just received one and the credit limit is more than double what I was told it would be in branch. Obviously its far from free money and not for long term needs amongst other disadvantages but cards seem like an easier way of building small credit if need be. I didn't have this experience with loans and got declined every time for pretty much the same amount I've just received with cards. Might be because I didn't call or go in personally though.

Good to have some backup plans prepared and wanted to see what this community thought. Expensive backup plan is better than none at all.

Thanks again.

Thanks for the update. If you'd been granted a loan you would have had to factor in the repayments which (apart from some that have repayment holidays) must be paid every month. So, knowing that, it seemed a very odd idea to propose credit card cash advances to clear another credit card rather than just servicing the debt in the same way you would have done with that elusive loan.

I understand that moving debt around without actually using your own money to pay it sounds fantastic but the card companies have had that covered for years with handling fees and unavoidable interest.

Ping-ponging the debt in the way described just increases it exponentially. So, in the absence of that loan, it's far better and cheaper to get a 0%-on-purchases card and actually use the cash that would have serviced the loan to make the repayments.