Make money from your credit card!

igraev

I am quite interested in stoozing, but before getting the best CC for stoozing I thought about doing the following with a credit card I already have.

I have a barclaycard which currently offers 2% cashback (thanks to Martin's tip of threatening to cancel the card). The scheme would work as follows:
1. Spend up to your credit limit (let's say £1000) on your credit card to buy a travelcard for many months in advance on the oystercard.
2. Ask TFL for refund (can be done at any tube station). Fortunately, they allow you to chose where to to give you the refund, so give them your debit card linked to your saving/current account. The refund will be: £1000-£5 (administration fee)=£995 straight onto your account.
3. When the CC monthly bill comes it will be: 1000-1000*0,02=980
4. Pay the CC bill in full. Therefore, you've earned the £15 out of nothing, being the difference between 995 (refund) and 980 (CC bill). :rolleyes:

The above scheme can be optimized if you use an amex that is accepted by the TFL (with 5% cashback and possibly with greated credit limit) and repay the CC straight away, without waiting for the monthly bill.

What does anyone think about the scheme? :money:

nzseries1

Risky... you would have to read TfL's T&Cs to make 100% sure you are entitled to a refund 100% of the time for no reason!

But... innovative! I personally wouldn't bother for £15. If it was £50, then maybe.

igraev

Why risky?! I got the refund a couple of weeks ago in this way. I had bought a travelcard in December before the prices went up to use it until October. Now I've moved flats so can use a bike to travel around London. When asked for refund - I was surprised I was able to chose where the refund could go to: so I chose my debit card.

The example above earns you £15 (on £1000 expenditure), but if you use an amex - it will give you £45 (i.e. £50 cashback less £5 admin fee).

I was also thinking that it is not necessary to buy a monthly travelcard for several months in advance, but instead to top up the oystercard by £1000 and then ask for refund. Although, I haven't tried it personally and not sure whether you can get the 'topped up amount' on oystercard refunded.

nzseries1

You can get the topped up amount on an Oyster card refunded, however the maximum pre pay on an Oyster card is £90.

I would be so worried that they would not refund the travelcard, but you know more than me as you've obviously done research! Still, the thought of being stuck with a useless travelcard is enough to scare me off.

igraev

I was scaried too the very first time - I was worried I would not get the refund, but it worked for me and for my wife. I also asked about the refund at different tube stations and all seem to confirm that you can get the refund, subject to the admin fee of £5.