Paying one card off with another?

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weshall

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Can any one tell me if this is possible (i doubt it).
If i have 2 credit cards put a $20k balnce on one then when the bill comes pay it of with the other (not cash advance) so i don't pay any interest but get the points (not very ethical but just interested if it would work at this stage) the idea would be you do this for a while and mount up the points while keeping the $20k that you spent in an account earning 6%
let me know the problems with scenario
Wes.
 

simongr

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How would you pay it off with one card without a cash advance? The only way I could think of doing that would be a balance transfer - and I think you would not receive points for that.

I know this was something people did in the 80's (in the UK at least) but then they introduced cash advance fees.
 

NM

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Wes, if it was that simple, then everyone would have have multi-million points balances and the banks would go broke. Since the banks are far from broke and our points balances are not that easily manipulated, I can assure that its not a feasible way of beating the system.

There are only two ways to pay off one credit card with another:
  • Cash Advance - which rarely earn points and cost interest immediately
  • Balance Transfer - witch rarely earn points and are generally limited to a maximum number of transfers in a year
 
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turbo

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Set yourself up with an ABN, a business account and an EFTPOS machine from the bank (just make sure it looks real enough for them to let you get one - say your an ebay seller or something) and go nuts. use your cc, and get a circle of funds going in and out. they'll probably catch on to it pretty quickly (if you get that far) but it might work.
 

oz_mark

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turbo said:
Set yourself up with an ABN, a business account and an EFTPOS machine from the bank (just make sure it looks real enough for them to let you get one - say your an ebay seller or something) and go nuts. use your cc, and get a circle of funds going in and out. they'll probably catch on to it pretty quickly (if you get that far) but it might work.

Even if you could get this set up and running, wouldn't fees eat away at this?
 

Optics

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oz_mark said:
Even if you could get this set up and running, wouldn't fees eat away at this?
Yes, you would pay the merchant fee on every cc transaction, which would make it an expensive way to earn points!
 

simongr

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At 3% you are paying 3c/1pt - how does that comapre? On my recent DONE4 I generated about 90k points off a A$10,000 ticket - 11c/point - so its a little cheaper than the way I earn points ;)
 

NM

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simongr said:
At 3% you are paying 3c/1pt - how does that comapre? On my recent DONE4 I generated about 90k points off a A$10,000 ticket - 11c/point - so its a little cheaper than the way I earn points ;)
Yes, bit you also got to fly to lots of places you needed/wanted to visit. And you were reimbursed for that $10,000 spend.
 
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