Withdrawing cash from a credit card and immediately transfering balance to another...

tonym_dj

Hi,

I have a question regarding withdrawing cash from my credit card.

I have just received a shiny new credit card to transfer an existing balance from an old card. This is fairly straightforward with a 3% transfer fee and 0% for a year.

What I would like to now is if I take out cash with my old card and immediately transfer the total balance to my new card what am I likely to incur other than the 3% transfer fee?

I'm aware withdrawing cash usually has a high interest rate but as it will essentially be paid back within days what's others costs may occur?

The old cards I have are Virgin and RBS and I will be transferring the balance of both of these cards to my new Egg card.

Any advice would be much appreciated.

Thanks
Antony

john1002

Apart from the interest, the cash advance fee and limit on how much you could withdraw will all impact any savings, you may also find that your card has a cash limit so you will not be able to wthdraw more than this.

eg barclaycard limit 2500 but cash limit 1300

NickX

There is usually a fee for withdrawing the cash of around 3%.

With this and the 3% Balance Transfer fee, it would not be very profitable for you.

As the new card is an Egg Card, you can ask them to simply balance transfer the money direct to your Bank Account and forget your old card. This would just incur the 3% Balance Transfer fee and could make you money if you invest the cash in a high interest account - check out the stoozing sub board for loads more tips on making money this way.

tonym_dj

Hi,

Thanks for your replies!

I thought there would be more to it.

Going back to the point made by NickX:

"As the new card is an Egg Card, you can ask them to simply balance transfer the money direct to your Bank Account and forget your old card."

I need to clear my old cards as the interest rates have kicked in and it's costing quite a lot, however, are you saying I would be able to transfer money directly from my Egg card to my bank account essentially giving me cash which I can use to clear my old cards as well as have spare cash to invest for a 3% fee?

Thanks
A

YorkshireBoy

tonym_dj wrote: »

...are you saying I would be able to transfer money directly from my Egg card to my bank account essentially giving me cash which I can use to clear my old cards as well as have spare cash to invest for a 3% fee?

Yes, he is.

tonym_dj

That's fantastic!

Thanks for your help!

A