I was informed of a new Co-op Credit card today - 12.9% APR - no charges for cash withdrawals - or for cheques.
Borrow half your limit in cash over the month - taking it out of ATMs
- or use a cheque to pay off outstanding debt on other credit card.
When you get the bill - withdraw the other half of your limit to pay off the "loan".
This show could run and run - a permanent loan at no cost.
(Or - am I missing something????)
It would only work until they either lowered your limit or started charging interest on cash withdrawals immediately[1] rather than there being no interest if you pay off each month.
[1] Are you sure that they do not already do this?
Yep - you're missing the *interest* charged!!
"Graham Murray" wrote
[1] - Of course, they actually do :-
You may have misunderstood the advertising.
No charges for cash withdrawals usually refers to the 2 or 3% "instant" fee that many cards charge. But somewhere in the small print it will probably say you will still be charged interest on the money.
tim
Absolutely - I phoned up to check.
Take money out of an ATM (or use a cheque) - settle full amount when the next bill is received - no interest or charges.
"JMS" wrote
Is it one of these from their website? :-
You are correct - as the other Tim found and pointed out.
As I said : I could not really believe it ("am I missing something????)
It is the Clear account.
I received the details - and from the info if appeared that you could do what I said - but it did seem too good to be true.
I have now checked four times by phone - and each time I was categorically told that I would not have to pay interest.
On the fourth call I explained the "scam" and asked that the guy checked when the interest was charged from; after some time he came back and confirmed that it is from the date of the transaction - as one would expect.
There is obviously an urgent need for training of operators.
I thought it was in the category of - if something seems too good to be true - then it probably is.
Cheers to all.
Thanks for the heads up on this! Loan rates as a whole are being advertised quite low again for a change - I saw 7.6% @ Nationwide yesterday. Finally banks willing to pass on SOME of the drop?
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