Cash advance then credit transfer

smiler289

Hi!

If you get a cash advance on a credit card you will usually get charged a small percentage, but can you then transfer that balance to a 0% card? Or does it depenmd upon each card?

Cheers

Smiler

benf90

When you make a balance transfer the company of the card you're transfering the balance to don't see what your balance is or how its made up... all they simply do is send a payment to that card on your behalf.

So, yes you can transfer it away just like any other credit card balance.

However, you would need to transfer over the full balance as most credit card companies will apply any payments to lowest rates of interest first, i.e. purchases... cash is usually charged at a higher rate.

If you just transfer part of the balance, you'll still probably end up paying the higher rate of interest for the cash part of the balance.

There are some exceptions with different companies but its best to either check your T&Cs or ask your card provider how payments are applied. Or just transfer the whole balance if that is what you're looking to do.

If you haven't already withdrawn the cash... have you asked your card provider if they can send money to your current account? This is usually charged the same rates as a balance transfer, so you'll pay less interest this way, the only down side being that you'll have to wait longer to get your hands on the cash as it won't be transferred across straight away.