Debt Recycling & Cash Advance?

Discussion in 'Share Investing Strategies, Theories & Education' started by Innnq, 18th Jan, 2019.

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  1. Innnq

    Innnq New Member

    Joined:
    22nd Jan, 2016
    Posts:
    4
    Location:
    Sydney
    Hi all

    Still new... so please be nice :)

    So, between me and the missus we probably have about $20k in credit limits on our credit cards.
    I was thinking, if is at all possible to use a Cash advance from the credit card to keep the money in the offset account, and pay back in full before the interest free period ends? Then do the same thing, CC Cash Advance -> Offset -> pay back in full before interest gets charged.

    I'm thinking this would "inflate" the amount of money in the offset account and save me some interest, which I could then use to increase my LOC down the track.

    Would there be any adverse effects on my credit rating?
    Can it work as long as I stay on top of the repayments?
     
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  2. inertia

    inertia Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,617
    Location:
    Newcastle, NSW
    credit card cash advances usually dont qualify for the interest free period - they charge interest straight away.

    Cheers,
    Inertia.
     
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  3. TSK

    TSK Well-Known Member

    Joined:
    14th Apr, 2018
    Posts:
    625
    Location:
    VIC
    The only way this might work is if you could transfer the balance to a new card with interest free. You would be slugged a transfer fee on the balance and any interest with the orginal credit card. Your credit rating would be shot due to repeated credit card applications. In my opinion this is a charlie foxtrot.
     
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