CC Cash Advances 1/2% (or less) - Hot Deal that doesnt violate TOS (plus free mileage, cash back, etc)

[spec411]

For people needing emergency cash this holiday season, dont use your CC to get cash advances and pay the 2-4% fee. Also good for using "rebate" credit cards that give you 1-5% back in gas, net purchases, airline miles, etc... to actually MAKE MONEY...

Some people have used paypal, payplace, etc. to charge their credit cards and send themselves or family members checks to get the cash out and accumulate airline miles, free gas, etc..while free, this violates their TOS and could get you suspended.

But www.Cap1visabuxx.com offers a "stored value" credit card, you can fund with your CC and withdraw at an ATM (AND they permit it!)

Their catch is they charge you $1 ATM fee, and $215 max withdrawal per day from ATM..so say you pay $1 for $200 withdrawal...thats 1/2% cash advances!!! They also charge $2 per month for the account. But theres a way to make it completely free or even make money on the deal:

Take all the money you withdraw at the ATM and pay off your cc with it. You pay 1/2% for the cash advance, but get say 5% back for amazon, bn, etc (if you have an ecard)...youre netting a 4 1/2% gain on your money..thats pretty good! Even if you just get back 1% (free gas, discover/citi cashback cards) youre still making 1/2% PER MONTH, or ~6% per year, and you are using THE CREDIT CARD COMPANIES MONEY, not your own!

Net result: You are GETTING PAID to use SOMEONE ELSE's MONEY!!

Its a little bit of work, but great for certain situations (need a few more airline miles, need a free cash advance, etc) and its always great fun withdrawing $200 per day from an ATM!!

 

[RoadRuner]

umm capital one charges some pretty steep "CASH ADVANCE" fees on the credit card side last time i checked..

 

[Tharpertx]

What are you talking about?!!! This is a debit card! You are not using someone else's money, but yours Maybe I did not read everything right, but then...I am not sure you did either.

The only thing I can guess is that you are using another card to fund this one, and then withdrawing the money $200 a day to get it back and pay off the bill? Max on the card is $1000 and you have to pay interest on your "Reward Visa" if you carry a ballance. Plus $2/month that your card is open? All for $50-$5(ATM)-$2 is $43?!!? You are going through a lot for a few bucks and if you have to pay interest on your "5% Reward Visa", you could almost lose money (definately lose money on Discover.)

Can you show us the money through your calculations?!

 

[spec411]

its not a debit card its a stored value card...Like I said, you are using ANOTHER credit card to fund this one, so its never your money being used...and the cc you fund it with must be paid off in FULL so you maintain your grace period..ie you must never acrry a balance on that credit card...

...believe me I understand this fully and am making over $800/month on a similar program (using several cc's and about $80k per month advances), you do seem to understand it....

Heres the sample calculations and Im sure you can figure it out yourself...

Example: you have a CC that pays 2% cash back (Click Citi) with a $6000 limit and 0 balance. You fund the Buxx card with $1000 from this CC every 5 days, withdraw $200 every day...funding is treated as a purchase like paypal, not a cash advance. Repeat this funding 6 times per month (every 5 days for 30 days)...thats $6000 charged, and $6000 withdrawn in 30 days. Deposit every ATM withdrawal (all $6000) in your bank account to pay off the Click Citi balance when the bill comes due in 20-25 days. (so you will also have $6000 in your bank account earning interest till CC is paid).

COSTS and PROFIT: You just earned $120 in cash back from Click Citi (2% of $6000). You are charged $30 for ATM fees ($1 per withdrawal)= net $90 PROFIT. Of course make sure you use an ATM that charges no fees (most credit unions dont). Subtract the $2 monthly fee, still $88/month profit tax free. Plus you earned the interest on the $6000 deposited in your bank till the cc bill is paid in full.

Thats $88/month assuming a 2% cc bonus..use cards that give 5% (GM mastercard, etc,) and you will make over $200/month.

Like I said, even if you fund from a card with NO cashback bonus, you are paying only 1/2% for cash advances, and pay NO finance charges or interest on the advanced cash, which is a better deal than ANY place in the world. Study how it works carefully if you dont yet understand, or ask someone good in math to take a look at this and explain it to you...

Its a bit of work as I originally stated, but helpful if you need additional airline miles, a "free" cash advance, or just some extra mad money. You are NEVER using your own money, you are using the credit card co's credit line to make money off their money...when you find another way to come up with a 60 day interest free cash advance that pays YOU money let me know....

 

[freeman]

spec411,

It sounds very interesting. Two things:

1) Click Citi 2% promotion rate ends 12/31/00. After that, it's 1.0%

2) Click Citi cash rebate annual limit $300.

 

[spec411]

Other rewards cards include: Amoco Visa (2% free gas back) Shell Mastercard (1% gas back) Exxon Mastercard (1% gas back) GM Mastercard (5% credit on new car purchase) Carnival Cruise MBNA card (4% credit on a cruise..this one's cool, I average a free cruise EVERY 2 MONTHS!!) various Discover and Amex cards, etc etc...and all these cards have no annual fee...

plus there are NUMEROUS hotel and airline affiliated credit cards which can earn you free nights, free flights, etc...you pick the rewards you like best!

The key is using several cashback credit cards, if you dont already have them, you cant do this to the extent Im doing it, and applying for a whole bunch of credit cards at once can F$#%^ up your credit rating...Exxon gas rebate cards have no limit, hotel and airline card limits are usually 48,000-60000 limit, etc

do a search at bankrate.com for more cards and links....

 

[freeman]

I don't have kids. How do I apply the card? Is there any way to get around this? Thanks.

 

[spec411]

Huh?? why would you have to have kids?? I dont either!! If its a "student" card youre talking about, make a no-name school up they dont really care or check...remember I dont work for these people - you need to find out yourself and figure out how to apply!!! You gotta do some legwork on your own!!

 

[w3b]

if you do this that often... are you sure it won't raise a 'flag' at their end?

 

[spec411]

Unlike Paypal and the others that try to prohibit this activity, Buxx PROMOTES doing this, and encourages it and has planned for it by their charge for ATM withdrawals...so they are getting paid.

Its your CREDIT CARD companies that may not like it, but you are only making 6 "funding sessions" per month of $1000 (I recommend doing like 999.95, so it looks like a product bought) and all of us have more than 6 charges per month on our CC's!! Put some other charges on there too and make them blend in...

Whether this may raise a flag -who cares?? Use it for all its worth till you cant use it anymore!!!

 

[freeman]

spec411,

I went through the link you provided:

www.Cap1visabuxx.com

I don't see any "stored value" credit card, only the card for teenage.

Are you sure that's the right link?

 

[spec411]

yeah thats the one! There nothing that says "older kids" cant get one@!! Similar cards such as cobaltcard are also intended for teens but anyone can get them...why dont you call and tell them you want one and see what they saY?

If they absolutely refused to give you one, make up a kid! As "parent" you are the one funding it, and also have control over the finances so you are authorized to use it!

 

[joshdoe]

Sounds very interesting, but I don't think I want to have $6000 on the line in case something went screwy.

 

[Banshee Mullet]

Great scam, spec411.

I have a Continental Airlines card and get $1=1 mile. Doing this deal, For $32/month in ATM and service charges, I'll get 6,000 miles a month, so for $384 over 12 months, I'll get 2 round trip tickets to the Carribean destination of my choice (Aruba baby!!) on top of what I normally charge on my card. Not exactly free, but not bad, might have to give it a try. But I'll have to use the ATM every day and that's a hassle. The cash back cards @ 2% would be a much better deal.

 

[DaveH]

I own a Click Citi card (as does my wife), and the 2% cash back deal ended for us last May 1. I checked the site http://www.citibank.com/us/cards/cardserv/cc_plat/ , and it only says 1% now.

How'd you keep getting 2%?

 

[pmark]

Does anyone know if this sort of activity will put up a reg flag to be audited? It would make some sense to me to put up a flag because of the high amounts of debits and credits going to your credit cards and bank account.

Also I don't konw if you really want to "make up" a person just to get this. I would think that is consider fraud and you might get in some serious trouble. Is there any other way to do this instead of making up a kid?

 

[Kriegsmarine]

Thanks for the post. But in addition to the $1.00 ATM fee charged by Capital One, isn't there also an ATM charge charged by the bank ATM that you use (perhaps this is only in California)? If I don't use a Capital One ATM (I don't know of any in my area) and instead use another bank's ATM, doesn't the bank charge you a fee for using "their" ATM machine?

 

[sunilJM]

you are exactly right! most banks will charge you a SEPERATE fee just for using THEIR ATM machine. $1 from Capital One, and then another $1.00 - $1.50 by the ATM machine Bank.

too many banks are too greedy!! then again, they are kinda like us!


<patooie!>

 

[pmark]

Another alternative instead of this Capital One card might be the Cobalt card, which is backed by American Express.

I'm trying to find out more info about it though, their web site isn't that good.

 

[spec411]

I believe I stated above, you MUST go to a ATM without fees...most credit unions have these, otherwise all your gains are lost!!

This is NOT a scam, just a clever way to take advantage of their policies without violating any rules whatsover, in this situation their attorneys and accountants left a loophole in the policy to be able to do this...

I only said to &quot;make up&quot; a kids name if they refuse to give you a Buxx card, but ther is NO reason you cant get one yourself! Its &quot;targeted&quot; towards youth but ANYONE can get one, so dont worry! As far as I know, Cobalt card will NOT let you withdraw cash, you need to spend it all on purchases (i believe, havent verified)...the key is withdrawing the cash to pay off the CC you just charged!!!

$384 for 2 plane tickets to the bahamas is a hot deal!! plus dont forget the interest you'll earn keeping the $6000 in the bank till you pay the cc bill every month!! I never caluclated the avergae daily balance you would have but it should get you another $100 or so over the year if you have a high interest checking account (say 5%) and time your payments to take maxiumum advantage of the grace period!!

 

[NICKel]

This all sounds very good, but when I went to sign up it requested two different SOCIAL security numbers.

 

[anazoal]

spec411, this sounds like an excellent deal. The only problem is for most people it's too much of a hassle to withdraw money every day, and deposit the cash every so often in the bank.

One other thing, make sure you're keeping a record of ALL your transactions. Depositing cash like that will raise a flag, and the bank will report you to the IRS (I think that's if you exceed $10,000 annually in cash -- I could be wrong about the amount though) and the FBI (money laundring). Still, if you have all your receipts, I don't see a problem.

 

[jsfetzik]

If you are a CostCo member try using their ATM's. I have been to three different stores and none of them have charged a fee to use their ATM. This is probably because they don't take most credit cards.

 

[VisionsUCI]

good deal... but you must really have a lot of free time, eh? i don't have the time to go to an ATM every day and cash out.

 

[Healey]

I could be wrong but I think the amount that triggers a Fed notification is $10,000 per transaction.

And even if the feds were notified there's nothing illegal about this.