mv
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Post by mv on May 6, 2015 17:23:14 GMT
I notice that FC allows you to transfer in using credit card payments but that it is treated as a cash withdrawal. Does anybody have any experience of using credit cards to transfer in to FC and then immediately clearing the full balance with the bank so as to avoid interest payments?
I'm wondering if this could be a useful way to accumulate Air miles, reward points etc...
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coop
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Post by coop on May 6, 2015 17:35:06 GMT
Never done it but yeah you get charged as if it were a cash withdrawal.
I guess it could be worthwhile if your cash withdrawal fee is less than any cashback/incentives on offer; somehow I imagine it won't really be worth it.
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adrianc
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Post by adrianc on May 6, 2015 17:36:24 GMT
Hmmm. You could transfer it in to FC, transfer it out to the bank, pay the card off, then start all over again...
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coop
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Post by coop on May 6, 2015 17:46:14 GMT
Which is why I imagine they make it unattractive enough via fees that people don't do it as it amounts to arbitrage.
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mv
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Post by mv on May 6, 2015 18:13:34 GMT
I have a halifax clarity CC which charges no cash advance fees, but gives no rewards either. Just realised my reward cards all charge 3% for cash advance even if paid off immediately.
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TitoPuente
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Post by TitoPuente on May 7, 2015 11:23:37 GMT
Generally credit cards don't award any reward points or miles for cash advances. Rewards are only for regular spend.
Even if there are no fees, credit card cash advances have relatively high interest rates (18-20%) which would not work as a way to leverage an investment in FC.
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