How to Get a Free Credit Card Loan (Credit Cards in general)

Member Name: UK-Verified

Product:	Credit Cards in general
Date:	22/02/07 (350 review reads)
Rating:

Advantages: Could be long term interest free

Disadvantages: None if used correctly

This is an easy way to get a free loan using your credit card.

The idea of this revue is to gain free use of the card issuers funds and to get the card issuer to pay its own statements.

This can be operated over an extended period but the money will eventually have to be repaid at some point.

This will only work if you can get credit card cheques as described below and there are no hidden charges.

If your bank has supplied you with credit card cheques and you are not charged a percentage of the transaction value when using the cheques.

This is how and why it works.

Spending on credit cards often does not appear on the monthly statement until several weeks after the transaction occurring.

When a statement is received it will often not be due for payment for around three weeks.

Credit Card Cheques allow payments to be made to people who cannot accept a credit card.

Cheques are cashed by the recipient like any other cheque.

Unfortunately you usually cannot write one of these cheques to yourself.

This is because the card companies charge for cash advances and writing a cheque to oneself would effectively be similar to an advance.

Therefore it would probably not be allowed if your issuer was aware of your intended use of the funds.

Sometimes it may be possible to use a work around.

A commenter on this revue said they wrote a CC cheque to themself by paying the Cheque into an account held with a competitor.

In order to benefit from a free of cash advance charges and recurrent interest charges loan it is necessary to do the following.

Immediately after a statement write a credit card cheque to someone you trust on the understanding that the money is not theirs and will be returned when your statement is due for payment.

In return the recipient of the cheque keeps any accruing interest from the money.

This will gradually add up because every month you will need to write another cheque and the trusted persons account will maintain a positive balance for much of the year.

If your card balance is zero you could write a cheque for 50% of your credit limit straight away and that would be the amount of your loan.

I suggest allowing a couple of percent to be on the safe side.

The cheque should be for an amount high enough to pay in full the last received statement but must not exceed half of your credit limit.

Make sure that the total of all transactions and the cheque amount together do not exceed half of your credit limit.

When the bill is due for payment either ask for the money back or get the recipient of the cheque to pay the bill on your behalf.

By waiting for the arrival of each statement before writing the next cheque and never exceeding 50% of the available credit limit full payment of the balance is possible every month.

In effect you owe very close to your full credit limit every month but only have to pay what is showing on your last statement.

That is why you should never exceed 50% of your credit limit with the cheques.

You use the card issuers own money to pay the statement each month.

If operated correctly your credit history will improve and your credit limit will increase because every month you are paying your statements in full.

This method avoids any interest or charges and so enables a completely free time unlimited loan.

As far as I know it is perfectly legal.

If you decide to use this it is your responsibility to make sure it is legal and that you know what you are doing.

You must use the system correctly for it to work.

Make sure you don't use CC Cheques that are charging you a percentage of the transaction value when you use them.

The card issuers will often encourage you to pay those type of CC cheques into your own bank account.

That type of CC cheque would work out as an expensive loan.

As I said earlier the idea of this revue is to gain free use of the card issuers funds.

And as I said earlier probably at some point in the future you will have to pay off your credit card balance.

e.g. If you run out of CC Cheques and can't get new ones then you would need to make the CC repayments yourself.

This does not constitute any kind of financial advice and any actions you take are entirely at your own risk.

Summary: How to get your credit card issuer to pay its own statements