Cash Advance Credit Card

kangaroorampage4

What is the best way to use a credit card to transfer money to a family member?
I have looked at PayPal, Transferwise, is there a better method as the card interest will be charged at the moment the transaction is made as it would count as a cash advance?

[Deleted User]

A money transfer promo.

But a smarter way would be to use the card for things you would normally pay cash for and then save your cash.

Ebe_Scrooge

A "money-transfer" card would probably be your best bet - there's usually a fee, and you'll pay interest (usually a low introductory rate for a number of months), but nothing like the cost of taking cash from an ordinary card.

But I'd be wary of using a card to transfer money to a family member - this board is littered with tales of woe from folk who have lent money to family and friends, only for it to turn sour when the loan isn't repaid.  If you have cash in the bank and want to give a gift then fine - but why are you looking to use a credit card?

kangaroorampage4

Sorry guys I forgot to mention I already have a credit card. I do not have cash to pay back the family member till I get paid at the end of the month. The family member needs the money urgently.

Ebe_Scrooge

kangaroorampage4 said:

Sorry guys I forgot to mention I already have a credit card. I do not have cash to pay back the family member till I get paid at the end of the month. The family member needs the money urgently.

Hmmm.  If you need the money that quickly, I'm almost tempted to say take a cash withdrawal on your existing card.  Yes, there'll be a transaction fee, and you'll incur interest from day one (even if you repay the balance in full when the statement arrives).  But depending on how much you're talking about, it may be the simplest way.  (All this assumes you'll be able to clear your card in full when the statement arrives - otherwise ignore what I've just said, you could end up digging yourself into a big hole!) If you need the money before the end of the month, it's no good trying to apply for a new card anyway.

If the family member needs the money that urgently, can't you just use your card to buy whatever it is they need for them?  Then it'll be a standard purchase on your card, and they effectively get their money back?

kangaroorampage4

The family member lives about 200 miles away, so was looking for a online solution. I need to transfer 800 pounds to him, my cash advance limit is 500/day, I think as it says on the banks website, so transferring online might allow me to surpass the limit, he needs the money tomorrow. 

Ebe_Scrooge

It's none of my business, but what does he need the money for - is it something (like a bill) you can pay for online, on his behalf, using your card? 

kangaroorampage4

He needs it for train tickets, food and other bills. I can pay for 200 of it on my card, rest he needs in his bank account. He has started a PHD program and has little cash to pay for a deposit for a place to stay, hotel stay is far too expensive.

Brie

Can you not pay the deposit directly??  Perhaps with the card?  Likewise do an online grocery shop?  That at least buys you time to get your money to pay off the card before interest hits.

kangaroorampage4

Brie said:

Can you not pay the deposit directly??  Perhaps with the card?  Likewise do an online grocery shop?  That at least buys you time to get your money to pay off the card before interest hits.

I don't have the funds to pay the deposit directly. Can do the rest online no issues, will take 2 mins. So wanted a solution to use my credit card without it showing as a cash advance

Ebe_Scrooge

Are you not able to pay the deposit online/over the phone on your card?