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Author: Abhyasi One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308642  
Subject: CCs for short-term cash? Date: 12/9/1999 2:37 PM
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Greetings fine Fools,

I come visiting from other boards (Mechanical Investing, mostly) as a stranger in your good land, seeking sound advice on a scheme of mine to leverage 2 credit cards I have to my advantage (I apologize in advance if this has been prevoiously answered, but I did not see it in the FAQs and posts which I browsed).

My situation: I need a sizable amount of cash (2->4K) right now. I am 100% sure I will be able to pay this off 4 months from now. I have Credit Card A with a zero balnce, offering me a 6-month intro balance transfer rate of 2.9%. I also have Credit Card B, on which I can take out a cash advance of up to 5K, but at a much higher rate of 21.99%.

My scheme is to take out a 4K cash advance on Card B, and then immediately transfer the balance to Card A, effectively giving me a 4K loan at 2.9% for 6 months, within which time I will pay off the balance.

I thought there might be 2 problems with this. One: the allowability of a balance transfer of cash-advanced funds (i.e. would Credit Card B even allow me to do this?). Two: the impact on my credit rating of transfering balances to chase low intro rates. Because if I wanted to get really silly here, I could just keep getting large cash loans at around 3 or 4%, by simply transferring the balances around after I've cash advanced them on another card.

Whaddya think? Not possible, not recommended, or not explored yet? Your thoughts and opinions are appreciated.

-Abhyasi
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