Getting cash off a credit card....

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Hi all,

Say I've got a credit card with £300 debt on it. If I pay this off with a balance transfer from another (interest free for 2 years) card of £600, can I just take the extra £300 off the card with no fee and rinse it on xmas? So that I can just pay it back over the interest free period.

As in if my card is was £300 in credit would there be a charge to put it in my bank account?

I know they would charge to transfer money from the card that would be putting debt on the card, but I'm not sure about if the card is in credit.

Thanks,

G
 
Thick question but why would you want a credit card to be 300 quid up when you'll just have 300 to spend on the other one??
 
If you had to do this, why not just spend the remaining 300 with the card then do the transfer?

Although it sounds like maybe you should just lay off the spending if you are having to balance transfer to cover £300.
 
Credit card issuers don't like you over paying on your card, as to them it looks like money laundering, and in a lot of cases often is. The likelihood is, they will not allow this, or only allow you to spend money using the card, and not issue a cheque for the over payment
 
Most cards will not allow this. If you are desperate for cash in your bank to the extent that you'll consider using some sort of balance transfer deal to get it, then look for a credit card which offers a 'Super Balance Transfer'. These are normally MBNA backed cards and allow you to transfer an amount to your current account.

However really, Malt_Vinegar has this spot on.
 
£300 isn't the actual number. I was just wondering about the scenario. Just looking to change my borrowing to interest free borrowing with a 0% for 24 months credit card and then maybe an interest free ipad or two on the side.

Pay back say 50-100 quid a month, enjoy my iPad for a bit, and be debt free at the end of the 0% interest period all the while cutting out the interest I'm paying now for the same borrowing.

I can't justify the £500 odd on an iPad up front but I'm more than happy to spread the cost over time if there is no interest.

Seems pretty win win if it's possible.
 
My sincere advice for life is to try if at all possible not to spend any money that isn't yours. That way, you will avoid debt, which can be a horrifically bad thing to deal with when it gets out of control.

There may be an interest free period, but are you 100% cast iron confident you will have the money to pay back when necessary?

Rgds
 
Guru said:
£300 isn't the actual number. I was just wondering about the scenario. Just looking to change my borrowing to interest free borrowing with a 0% for 24 months credit card and then maybe an interest free ipad or two on the side.

Pay back say 50-100 quid a month, enjoy my iPad for a bit, and be debt free at the end of the 0% interest period all the while cutting out the interest I'm paying now for the same borrowing.

I can't justify the £500 odd on an iPad up front but I'm more than happy to spread the cost over time if there is no interest.
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To be brutally honest if you are trying to juggle various amounts of debt from various places then an iPad is something that really ought to go off the radar for the time being. Using debt to finance the purchase of random consumer goods is a slipperly slope not worth trying to negotiate, let alone two of them!?

If you find yourself with £500 to spare one day then cool, grab an iPad. But don't borrow to buy one. It's just an iPad. And why a £500 iPad? iPad starts from £269!
 
radderfire said:
My sincere advice for life is to try if at all possible not to spend any money that isn't yours. That way, you will avoid debt, which can be a horrifically bad thing to deal with when it gets out of control.

There may be an interest free period, but are you 100% cast iron confident you will have the money to pay back when necessary?

Rgds
Click to expand...

That's a fair point.

I wouldn't do it at all if I wasn't completely confident I could pay it back. I would just set up a standing order.:D
 
[TW]Fox;23293569 said:
To be brutally honest if you are trying to juggle various amounts of debt from various places then an iPad is something that really ought to go off the radar for the time being. Using debt to finance the purchase of random consumer goods is a slipperly slope not worth trying to negotiate, let alone two of them!?

If you find yourself with £500 to spare one day then cool, grab an iPad. But don't borrow to buy one. It's just an iPad. And why a £500 iPad? iPad starts from £269!
Click to expand...

Was considering a 4 for me and a mini for the Mrs :)

I see what you mean about juggling the debt. I'm definitely going to get the card to pay off the one that I'm paying interest on, but the iPad is a consideration just because I like gadgets and it's xmas lol
 
Getting a new card and balance transferring to get 0% is absolutely the right thing to do. It's silly to pay interest on credit card debt if you can secure 0% elsewhere. Don't forget to check the balance transfer fee - some offer tempting long 24 month periods but charge a large fee. Others offer a few months less 0% but a much lower fee meaning you pay less.

But if you are card juggling like this then focus on clearing it down rather than collecting gadgets which will be worthless in a few years anyway. Don't borrow money to buy a couple of iPads, it just isn't worth it when you've got other borrowings to focus on.
 
SixKi113r said:
Credit card issuers don't like you over paying on your card, as to them it looks like money laundering, and in a lot of cases often is. The likelihood is, they will not allow this, or only allow you to spend money using the card, and not issue a cheque for the over payment
Click to expand...

Can you elaborate on this a bit more ? why would they see it as laundering ? surely most credit card debt is paid off via a current account that i am assuming is full of generally legitimate taxed funds ?

Do that many people really go into banks and pay there credit cards with cash ?

Natwest actually encouraged us to overpay on our business credit cards

Dont forget when you balance transfer your paying a handling fee of generally around 3% which is essentially front loaded interest and its also worth taking note of the minimum payments on them which isnt always 1% on attractive balance transfer rates
 
It's the Barclaycard Platinum which has 3.2% as a fee.... which I don't think seems too bad.

This....


Barclaycard* - LONGEST 0% deal24 mths 0%, 2.8% fee. Plus free monkey...?!
Barclaycard Platinum

Balance transfer length & fee: 24 mths 0%, 2.8% fee
Rep variable APR: 17.9% (Official APR Example)
Card issuer: Visa
Min repayment: Greater of 1% of balance plus interest, 2.25% of balance or £5
Any restrictions? Must transfer within 60 days
Min income: £20,000

The longest 0% deal is Barclaycard* Platinum's 0% for 24 months with a one-off fee of 2.8% of the amount shifted. Plus, £30 fee refund if you apply before 6 Dec 2012, and a free 'Mr B' monkey toy once accepted.

The fee is charged a little oddly. Initially 3.2% is taken, then the difference will be credited back within 28 days. The further £30 refund applies if you transfer £2,000+ within 60 days.

You can't transfer from other Barclaycards to it, so if that hits you see the non-Barclaycard alternatives. After the 0% period, the rate jumps to 17.9% representative APR. See the Which card is cheapest? tool for how the top options compare.
Click to expand...

from here:

http://www.moneysavingexpert.com/cards/balance-transfer-credit-cards#barclaycard22
LOL @ free monkey
 
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MaX_PoWah said:
Can you elaborate on this a bit more ? why would they see it as laundering ? surely most credit card debt is paid off via a current account that i am assuming is full of generally legitimate taxed funds ?

Do that many people really go into banks and pay there credit cards with cash ?

Natwest actually encouraged us to overpay on our business credit cards

Dont forget when you balance transfer your paying a handling fee of generally around 3% which is essentially front loaded interest and its also worth taking note of the minimum payments on them which isnt always 1% on attractive balance transfer rates
Click to expand...

the cc issuers see it as money laundering because you are paying from one say unkown source, and getting a legitmate company to issue you a cheque, therefore giving that money a legit history. it's very common
 
[TW]Fox;23293633 said:
I doubt they see it as money laundering but overpaying is against the terms and conditions of most credit cards.
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i can assure you, they will. take it from someone who knows. if it a few £'s, then no. if it's more than a few hundred, alarm bells start ringing
 
SixKi113r said:
i can assure you, they will. take it from someone who knows.
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But in the OP's example there is no money being paid in from an unknown source. It is a balance transfer from an existing credit card company. He's using it to put money into his bank from his credit card without having had the money available in the first place. He is increasing his borrowing.

Overpayment, sure - but this isn't overpayment in the conventional sense where he rings up and says 'Err, yea, ummm, can i pay £2000 in cash onto my card, oh thanks, btw, please can Ihave a credit note' which is obviously a different kettle of fish.
 
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