A step-by-step guide on how to liquidate $10,000 in credit cards at 0% APR interest and turn them into cold hard cash to finance your business. As long as you can pay off your debts, this process is not a one-off, as you can continually apply for new 0% APR cards over and over.
When starting a business or investing in real estate, the path of least resistance is to finance development costs with an unsecured loan. The biggest obstacle, however, is that they are very hard to get unless you’re a well-established and highly profitable business.
While credit companies won’t advertise it, Zero APR cards provide the easiest way of getting a quick business loan that you can pay back over time without interest.
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Before liquidating any credit card, be sure to locally consult a certified accountant and an attorney to see if any of these methods violate local laws, or your credit card terms and conditions.
Do note, that depending on which option you choose, there will be some challenges to overcome when trying to turn credit into cash.
- To ensure you’re not paying any interest on cash advances, you’ll have to build your credit score high enough to qualify for a 0% APR credit card offer.
- To do receive a balance refund check, you have to ensure your credit card company will actually provide one, rather than just reverse your overpayment.
- To get a convenience check loan, you first need to have a credit card, then wait for an online promotion or an offer to come in the mail.
- To turn check payments into cash, you need to have someone willing to accept payment via check (like a landlord).
Any money that you borrow, such as from a 0% APR credit card, you will need to pay back before the no- interest timeline expires.
Liquidating Credit Cards
If you take a normal cash advance from your credit card, you’ll generally have to pay interest immediately, at a rate at a ridiculous rate of 20-30%! If you’re smart though, you’ll pay it off right away using a 0% APR balance transfer, so only your loan costs are the cash advance fee and a few days of interest.
Below you’ll find a three-step plan detailing exactly how to get an unsecured 0% APR loan while reducing the costs associated with cash advance fees.
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High Cash Advance Limit Card
Step One – Get a credit card that will enable you to take a high cash advance. As high as possible. It should also charge the lowest advance fees.
When you find the best card that you can qualify for, look for three or four more cards that can allow you to do a 0% balance transfer for at least 12 months. Most credit card companies have such offers, and you can easily find them online by searching Google for low APR credit card offers.
0% APR Card
Step two – Once you sign up for the first one, then lenders will be more than eager to give you another credit card with a better rate. This is how you are likely to end up with a 0% APR card for your balance transfers.
Withdraw and Transfer
Step three – Using your high cash advance card, take out a significant amount, as big a cash advance as the card will allow. Then immediately transfer the balance you just got advanced in cash to one or more of your 0% APR cards.
No Interest Cash Loan
Now you have a 0% APR loan that you can quickly pay off in simple installments within a full calendar year.
In this way, you will have a zero balance on the first card that you used to take out the first cash advance. You probably had to pay the initial fee for the cash advance, depending on the card you have.
The initial cost of your cash loan is the lowest you are going to get in the industry. You can now invest this money in your business and pay it back at an interest-free rate with low-minimum payments for the whole year.
Now that you have done this, you will end up with the kind of credit to give you more credit. This is if you still want more. The first credit card also now should have zero balance on it so that you can borrow again, anytime you can afford to.
Balance Transfer Refund
It’s also possible to get instant cashback when you already have a credit card that has a low balance. So, let’s say you have an offer for a balance transfer at 0% on one of your cards. This can be used to transfer the maximum allowed amount at the 0% interest rate, onto cards with low balances.
Low Balance Transfer
If the low balance on your card is $300, you can ask to transfer say $3,000 onto it. You will then have a negative balance of $2,700 on this card after the balance transfer payment goes through.
Overpayment Refund Check
Next, you will need to call your credit card company and ask them to issue you a refund check for the overpayment. This check can then go directly into your bank account, where you can withdraw it as cash.
Balance Transfer Cash Loan
You will then have another way of getting a cash loan of $3,000 at 0% APR. Alternatively, you can use the negative balance to pay any of your bills that can be paid using credit cards. This will still be paid at an interest rate of 0% as you will not be charging anything on it.
Please note that this only works on existing credit cards that have a balance. It would help if you did not balance transfers on cards with zero balance as the bank will not accept any transfers on zero balance credit cards. What you will need to do is have a little balance on the card for it to work.
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Convenience Check Loans
Credit card convenience checks can be turned into cash with low fees. Specifically, these are the kinds of checks that usually come with a credit card statement, and can be written out for anyone.
When issuing a check, you’ll be charged the same interest and fees as a credit card cash advance. If you write the check out to yourself and put it in the bank, it will work like a cash advance.
For you to start using convenience checks, the bank has to send you a special offer first, and you must always be on the look for them. For example, you may get an offer in the mail that has convenience checks with 0% APR for the next 12 months. This is the same as a 0% loan which you then have a full year to pay off.
Check Payments to Cash
Online companies like LandlordStation, Plastiq, RentMoola, and Venmo will accept credit card payments and then send out a check on your behalf. You can split the full payment across multiple credit cards where needed.
This makes it very flexible for you, and the reason why you should have at least three or four credit cards at your disposal, as mentioned in the cash advance strategy.
This process would generally apply to you paying rent with a credit card while giving the landlord a check. You could, however, also borrow money from friends or family, and then pay them back via check.
Just imagine, your rent being charged to your credit card like a purchase, your landlord getting the check as usual, and you not having to pay a single dime from your bank account.
The catch-22 is that these check sending companies will charge you 1.5% to 2.5% on each transaction. When paying with your 0% APR credit card, however, this is about as low an interest rate as you’re going to get. If you also have a credit card that collects Airmiles or travel points, all the better.
Rent Share Cash
If you happen to rent share with roommates or business partners, you could also charge the entire rent on your card. By using one of the services mentioned above, you would send the landlord a check while your roommates/business partners pay you their share in cash.
As you can see, turning credit cards into cash can work in many different ways, from 0% APR cards to convenient balance transfers and balance transfers refunds. With other option of check payments to cash, it’s possible to even pay your rent or mortgage this way too.
By utilizing 0% APR offers, you won’t pay any interest on your loan and will have easy monthly payments on your principal balance. This type of unsecured credit will not require you to leverage any of your assets as collateral and only requires minimal credit checks.
The system can also be continually repeated to get quick cash, by canceling the 0% APR cards when their offer expires and applying for new ones.