Using AIB Credit Card as Interest Free Cash Loan

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Zion2022

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I have found myself in a short term liquidity squeeze due to some poor planning. I might need approximately €15,000 for about 2-3 months.

I could do this through a short term loan but the hassle of applying and the interest are not that appealing.

One option that had crossed my mind is an apparent ‘glitch’ in the AIB credit card where you can top up Revolut via Apple Pay and it’s recognised as a purchase and not a ‘cash advance’. I found this out by accident years ago and have used for small amounts ever since.

I have a large credit card limit with AIB and rarely use it so had thought of sending €15,000 to Revolut for my short term needs. When they credit card is due to be cleared at the end of the month. I can do the same again and pay it back to clear the previous month. And again in the following month.

I think this is easy access to indefinite free credit, up to half of the max of my credit limit (not in the traditional credit card sense to buy something, but for cash). Anyone see any flaws other than a potential change in how AIB recognise these transactions across the board?
 
Zion2022 said:
Revolut via Apple Pay and it’s recognised as a purchase and not a ‘cash advance’.
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Are you absolutely sure this is still the case? Revolut changed their merchant code a few years ago, I can't recall the exact date. Transactions should now be correctly identified as money transfers.
 
Assume it is flawed.

What is the cost to you?

€15,000 @ 20% = €3,000 a year.
or say €300 a month.

This is probably ok.

But why don't you do it. Then apply for an overdraft and clear it as quickly as possible. It would halve the costs.

I think if you "borrow" €15,000 on your credit card and repay it a week later, you will be charged one week's interest.

Brendan
 
Another option might be to change providers.

Avant Money usually have 0% deals on Balance Transfers for 9 months or 0% on Money Transfers for 12 months on new accounts. You might be minded to apply for one of their cards. (However, I’m not sure you would get a €15k credit limit as a new customer.)

I used their money transfer facility at 0% for 12 months a good few years ago when they were offering the deal to existing customers. You could have 95% of your credit limit transferred to a current account. I transferred €15k at 0% for 12 months which got me out of a major bind during a period of tight liquidity. You’ll need to just repay the monthly minimum on time and make sure it’s all paid off before the 12 month period expires, otherwise you’re onto the 22% interest rate.
 
RedOnion said:
Are you absolutely sure this is still the case? Revolut changed their merchant code a few years ago, I can't recall the exact date. Transactions should now be correctly identified as money transfers.
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It stopped working for me through Google pay but I recently set auto top-up with an AIB credit card and it's working again. Not sure if it would work for such a large sum though.
 
losttheplot said:
It stopped working for me through Google pay but I recently set auto top-up with an AIB credit card and it's working again. Not sure if it would work for such a large sum though.
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To clarify, I was asking if AIB identifies such a transaction as 'cash', or as a 'purchase', and therefore if one can avail of an jnterest free period.
 
Johnno75 said:
Another option might be to change providers.

Avant Money usually have 0% deals on Balance Transfers for 9 months or 0% on Money Transfers for 12 months on new accounts. You might be minded to apply for one of their cards. (However, I’m not sure you would get a €15k credit limit as a new customer.)

I used their money transfer facility at 0% for 12 months a good few years ago when they were offering the deal to existing customers. You could have 95% of your credit limit transferred to a current account. I transferred €15k at 0% for 12 months which got me out of a major bind during a period of tight liquidity. You’ll need to just repay the monthly minimum on time and make sure it’s all paid off before the 12 month period expires, otherwise you’re onto the 22% interest rate.
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Avant are still offering that facility. I didn't avail of it, but they basically said they transfer the cash straight to your bank account. I think the interest free period though was 6 months (I may be wrong, it's a couple of months ago since I spoke with them). Seems exactly what you need.
 
Itchy said:
I did this as recently as June and was not charged any cash advance fees. I got cashback from the CC for the purchase o_O
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In the past, I used this to maximise my Cashback from KBC's credit card. I paid off the CC every month, so never paid interest.

I would wonder does the merchant code used by Google/Apple Pay (which is what thr Revolut top ups appear as to the AIB CC) count towards the Cashback scheme that AIB offer.

As for Avant and their "Money Transfer" option, I've been considering using it to get €10K, send this to TradeRepublic, net €132 after DIRT over 6 months (while paying Avant back from Salary over 6 months). Borrowing from Peter to get interest from Paul I know.
 
RedOnion said:
Are you absolutely sure this is still the case? Revolut changed their merchant code a few years ago, I can't recall the exact date. Transactions should now be correctly identified as money transfers.
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Yes, it seems to be. I do it all the time in normal course of events and have never been charged a cash advance fee. It’s treated as a transaction so I actually get cash back as others have said.
Brendan Burgess said:
Assume it is flawed.

What is the cost to you?

€15,000 @ 20% = €3,000 a year.
or say €300 a month.

This is probably ok.

But why don't you do it. Then apply for an overdraft and clear it as quickly as possible. It would halve the costs.

I think if you "borrow" €15,000 on your credit card and repay it a week later, you will be charged one week's interest.

Brendan
Click to expand...
Cost is 0 if it works. As long as the credit card is cleared in full within a month there is no interest. So as long as I only draw less than half my total limit, I can then fully repay it at the end of the month by paying over an equal amount to Revolut and then back to the credit card immediately, just rolling the interest free period for another 30 days each time.
It’s essentially a way of ensuring my credit card is always maxed out (but always fully repaid) as people often do to get interest free purchases. In this case my interest free ‘purchase’ is actually €15,000 in cash each month.
Johnno75 said:
Another option might be to change providers.

Avant Money usually have 0% deals on Balance Transfers for 9 months or 0% on Money Transfers for 12 months on new accounts. You might be minded to apply for one of their cards. (However, I’m not sure you would get a €15k credit limit as a new customer.)

I used their money transfer facility at 0% for 12 months a good few years ago when they were offering the deal to existing customers. You could have 95% of your credit limit transferred to a current account. I transferred €15k at 0% for 12 months which got me out of a major bind during a period of tight liquidity. You’ll need to just repay the monthly minimum on time and make sure it’s all paid off before the 12 month period expires, otherwise you’re onto the 22% interest rate.
Click to expand...
Very interesting, I’ll look into this as an option too. Thank you.
losttheplot said:
It stopped working for me through Google pay but I recently set auto top-up with an AIB credit card and it's working again. Not sure if it would work for such a large sum though.
Click to expand...
It’s always worked for me once I do it via Apple Pay. The risk I think is that as you say, repeated big sums get flagged somehow. I have done it for relatively large amounts in the past and no problem but that could change I guess.
 
Johnno75 said:
Another option might be to change providers.

Avant Money usually have 0% deals on Balance Transfers for 9 months or 0% on Money Transfers for 12 months on new accounts. You might be minded to apply for one of their cards. (However, I’m not sure you would get a €15k credit limit as a new customer.)

I used their money transfer facility at 0% for 12 months a good few years ago when they were offering the deal to existing customers. You could have 95% of your credit limit transferred to a current account. I transferred €15k at 0% for 12 months which got me out of a major bind during a period of tight liquidity. You’ll need to just repay the monthly minimum on time and make sure it’s all paid off before the 12 month period expires, otherwise you’re onto the 22% interest rate.
Click to expand...
I’ve just looked into this and it appears based on initial online application (subject to U/W of course) they’ll give me €12,000 limit with essentially a 9 months interest free loan as you said. Amazing. Thank you. Whoever said there was no such thing as free lunch…
 
Okokokoknic said:
In the past, I used this to maximise my Cashback from KBC's credit card. I paid off the CC every month, so never paid interest.

I would wonder does the merchant code used by Google/Apple Pay (which is what thr Revolut top ups appear as to the AIB CC) count towards the Cashback scheme that AIB offer.

As for Avant and their "Money Transfer" option, I've been considering using it to get €10K, send this to TradeRepublic, net €132 after DIRT over 6 months (while paying Avant back from Salary over 6 months). Borrowing from Peter to get interest from Paul I know.
Click to expand...
I did the Avant money transfer option years ago to out in a term deposit. Worked out well, but rates were higher then.
 
It does work but it is frown upon in Revolut's T&C. If you top up and do the transfer cycle too often, Revolut do flag it and does send you warning email about violating the T&C.
 
BigPineapple said:
It does work but it is frown upon in Revolut's T&C. If you top up and do the transfer cycle too often, Revolut do flag it and does send you warning email about violating the T&C.
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Could they also freeze the account ending up in the customer support limbo that others have reported with such Fintechs when things don't go to plan?
 
ClubMan said:
Could they also freeze the account ending up in the customer support limbo that others have reported with such Fintechs when things don't go to plan?
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Hard to know, I supposed they could freeze it since you would be violating the T&C but they gave warning first the last time.

Few years back i did do regular top up/transfer cycle weekly for about 2 months (for the cashback benefit) and it got flagged up and they sent me warning email. I have since stopped and only top up when I need to use it so the pattern is irregular now so far so good since. I don't keep too much in Revolut anyway, only for upcoming things I need to pay (Netflix, YT Music, etc) and top up as when it is needed so even if it is locked, I'm OK to be able to use alternative while it is being sorted out.
 
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