Free money. How can you afford not to? (Cahoot)

Member Name: psipple

Product:	Cahoot
Date:	10/01/01 (136 review reads)
Rating:

Advantages: Free money

Disadvantages: Higher rate than other cards if you stay

Cahoot, an offshoot of the Abbey National, started up as an online bank at the back end of 2000 and offer current and savings accounts. I've tried neither of these services,however, as the killer for me is the Cahoot credit card.

TV and tube ads announce this as a fresh idea, and it sure is. Transfer the balance of an existing credit card, and get 5% cashback. How can you lose? The answer is, you can't.

Open an account online and get a £5000 limit if you can. Transfer £5000 over, a process which you can only do by post and takes about 10 days, for £250! If you want to be really clever, use an existing card and take out as much money as you can, up to the Cahoot limit (but note some cards charge a lot for cash withdrawals), and stick it in a savings account. When the bill comes in, transfer the balance over to Cahoot for the cashback, then pay the bill from your savings. £250 plus a couple of months interest. Note that Cahoot's interest rates certainly aren't the lowest, although they're good, so the incentive to use the card lessens after the initial 5%. Card surfers will probably want to transfer their balance off to a card with a lower rate as soon as possible.

I opened an account online in December, now have my card and cashback, so I'm happy... but what's in it for Cahoot?

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