0% Cards and Cash

BigH1979

Long story short i need 10k cash, to be paid back over a year or so, from my credit card (14k limit, 0% on purchases, 1.5% on cash withdrawals). Can i withdraw the 10k in cash from ATMs and accept the 1.5% charge and then immediately transfer the whole balance to a 0% balance transfers card in order to avoid paying interest on cash from the original card? Anything to stop me doing this? Just a note to say I havent researched BT credit cards so don’t know what the likely credit limit is on these.

MorningcoffeeIV

Yes. But a money transfer would far less painful if your card offers it, than standing at the cash point for days on end.

If you can get a new card with a 0% money transfer, even better 

Your limit will depend on your risk.

MrFrugalFever

Not knowing what it is that you require the £10,000 for its difficult to give the best advice. One solution would be to pay for the product/service using the credit card and then Balance Transferring it - if there is a card and limit suitable available to you. Alternatively, look in to a Money transfer card. Some lenders such as main high street banks often give an indicative credit limit based on your personal circumstances when completing their eligibility checker (soft search for most), if you can get a large enough limit and a sensible transfer fee/term then this may be the best approach - assuming the product or service you are purchasing does not allow the use of a credit card.

Personally I wouldn't be withdrawing £10k from a credit card for a number of reasons;

- There will be daily limits on how much can be withdrawn (often around the £300-400 mark)
- The credit card company may freeze your account and query the quantity of transactions and amount
- Generally anything being paid over £9,000 in physical cash is queried by majority of businesses as this will form part of the AML regulations that majority of businesses are signed up to adhere to
- The credit card company will record every cash withdrawal transaction on your credit reports, this could have a negative impact to your future borrowing for a period of time (max 6 years)
- The cash withdrawal fee is often the most expensive way to utilise a credit card

fatbelly

What is it that you need to buy with cash that won't accept a credit card?

enthusiasticsaver

I would either look at a 0% money transfer card if credit cards are not accepted for what you need. It will be laborious drawing that much in cash. It may trigger security warnings at the card company, cash is not secure and drawing any cash on credit cards is not usually recommended as expensive. 1.5% of £10000 is £150 so if there is a way to avoid that I would. 

fleaglefi21

Sorry to jump in - re cash and credit cards, I've just got an offer with mine, cash withdrawal to bank account is 0% until Aug 2025. Is there anything to stop me doing this, then paying off my balance on that same card so I'm paying back with zero interest rather than my standard rate? Hope that makes sense!

MorningcoffeeIV

No, that's fine.

MrGreen

It's very unlikely that a credit card would allow you to withdraw 10k as cash for two reasons, firstly as mentioned above it would take ages, with "Daily cash withdrawal limit (generally ranging from 300 to 500 a day)" and a "Total cash limit (this is set as a percentage of your credit limit)" this is from Barclaycard. Your individual cash limit will be in the small print on your account.

As others have said it's much better to get a 0% money transfer card, get the cash transferred to your bank account and use it as you need and pay the card back before the offer ends