Hello,
I have read and understand the benefits of paying for food and living expenses on credit card and then paying balance off before interest free period kicks in. Is it possible say if you had a credit card with a max of 10k on it, to withdraw 9k of that or transfer 9k and put it in your offset account and then pay it off again before the interest free period?
Thanks
Similarily, are there any loans that you could believe could be accessed with an interest free period attached. You borrow and if you pay back within a certain time – no issue?
Hi Chat,
In my understanding, any cash withdrawals from a credit card are an IMMEDIATE instigator of Interest, and often at a higher rate than other purchases. e.g. a credit card might have a 17.9% rate for purchases, but a 27.9% rate for cash !!! It bites, so I am glad you asked first – but don’t just take my word for it – check that I am right with a bank. ;)Re loans with an interest free period? Hmm, pass !! Good to see you still thinking around the situation – good for you.
BennyBenny is right. Cash withdrawals attract no interest free period.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
And even if it were possible, lets be real here. You might save $7wk in the scenario.
A lot of effort for not a lot of gain – work smart, not hard.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Thought as much. Corey – good point!
It wouldn’t work as per Benny’s comment – high interest charges would negate the benefits.
Good thought though!
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
It’s hard to outsmart the big banks. Even on the interest free period, they make their money on the average person’s lack of self-discipline.
Jason Staggers | JasonStaggers.com
http://jasonstaggers.com
Email MeIt’s hard to outsmart the big banks. Even on the interest free period, they make their money on the average person’s lack of self-discipline.
And carelessness. I forgot to pay my cc last month being about a week over and I copped a $67 fee.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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