Hey guys, it's sasha in this video, i will share five very cheap and unusual ways in which you can borrow money using a credit card. Don't worry. This won't be the obvious way of just spending on the card and then not repaying it in full. I presume we all know that method.

You may know some of these tricks, but i reckon you might find at least one or two of these to be ones that maybe you haven't thought about just before i get into the details. I want to make one really important point: i am not trying to encourage anybody to get into debt, i'm also not wanting anyone to take on debts that they don't need to take or to take debt on for the wrong reasons or to take their foot of The gas when they're repaying existing debts, but sometimes things happen, and we need to borrow money or you might want to refinance debt that you already have so that you can pay less interest and you might not want to pay the relatively high cost of loans that Are available so i hope that these five tricks will be helpful. They are all very cheap ways to borrow money using some credit card tricks. First, let's do the most obvious and talk about the balance transfer switch.

Balance transfers generally exist to switch a balance from one credit card to another, and that's not what i'm going to be talking about here, but you can use the trick to make a balance transfer work a little better than that. If you want to make, for example, an expensive purchase - and you want to spread the cost on that purchase, you would normally borrow money to do it. Here is how you could do it via balance transfer. You can go and get yourself a good zero percent balance transfer credit card at the moment in the uk you can get credit cards that give you as long as 31 months at zero percent interest, with a fee of about three percent, which is not bad already.

However, if you look a bit further down those comparison tables, there are cards with slightly shorter, zero percent terms, but a much lower fee. For example, you can get 27 months of zero percent interest with only a one percent fee, as i'm recording this video, which is much cheaper in terms of an annual rate and it's financially a much much better option. If you only need to borrow for a relatively short period of time or you're, happy to try and do more balance transfers in the future once this one expires, some credit cards have no fee balance transfers, but the maximum term for the zero percent. On that credit card that you can get is about 19 or 18 months, so you go ahead and you choose the best balance transfer credit card for your particular needs, but you will need a different credit card as well alongside it to do this trick.

It's important to remember that these two credit cards, the balance transfer one and the other one, the other one doesn't really matter what which one it is. They have to be by different credit card companies and by two companies that are not part of the same group, because usually you can't do a balance transfer from one credit card to another if they are by the same provider. Just be careful because, for example, natwest and rbs are part of the same group and as another example mbna is part of lloyd's. So now that you have gone and got yourself that zero percent balance transfer credit card, you can go and make the big purchase on your other credit card.

Just make sure you have enough credit limit on both to do this play and then, as soon as the payment clears on your regular credit card a few days later, you can then balance transfer from that one to the zero percent card. Now, what you've done is you go on and got yourself a 27 month at one percent fee or a 19 month with no fee deal where you are borrowing money for that period, but for a very, very cheap price? Remember that you have to be very disciplined with this, make sure that you have a structure to pay that balance before the end of that zero percent term, either in regular payments or one big payment towards the end. Or maybe you want to do another balance transfer at the end, if you don't do that, you'll get very expensive very quickly when the regular credit card interest rate restarts now, the next trick is to use a zero percent purchase credit card. These are cards that allow you to spend on a credit card and not pay any interest on the balance, if you don't repay it in full for a period of time.

At the moment, you can get 23 months of zero percent with tesco bank, for example, but there's plenty of other options, and sometimes you can get much longer periods than this, and this method is the simplest. You just get the card you use it to buy whatever it is that you need to buy uh, you're, essentially borrowing money, and then you just make the minimum repayments or maybe higher than minimum repayments. And you have just under the two years at the moment to pay the full amount back before interest payments start. You will probably not get a huge credit limit with these purchase credit cards, but for a smaller amount.

This is basically a free two-year loan, which is a lot cheaper than getting a two-year loan from a bank instead. But again, you need a lot of self-discipline to make sure that you make those monthly payments to clear the balance. You'll need to pay more than the minimum in order to pay off the full balance that you spent, and you need to make sure that you don't continue. Spending on that card during the period and building up a much bigger balance than you can afford to repay, because if you don't repay it, you'll still have to pay the much higher interest levels after the end of that term.

You'll have to make yourself do it. You won't get the automatic payment set up, as you will, if you got a regular loan, but a zero percent purchase credit card can also be used in a different way, and this is the next trick. If you need to buy something, but you can't pay for it with a credit card uh, you might get into a bit of a problem, because the zoops and purchase credit card won't help you, let's say you're buying a used car, for example, in a private deal Of another person, they probably can't accept a credit card and you need to pay cash or maybe transfer money from your bank account. You can still use the zero percent purchase credit card to do the trick, though the way it works is this: if you get the card a month or two before you plan on spending that money, you can then put all of your regular spending that you would Otherwise be spending elsewhere onto the card instead of other cards or your debit card.

All of your food shopping bills, petrol all of that kind of stuff, and make sure that the zero percent purchase credit card. For that, one two month period is only set to minimum repayments. What that will essentially do is over that month or two all of the money you would have spent will gets to stay in your bank. Account doesn't come out and instead is built up as a balance on a zero percent purchase credit card, and then, when it comes to making that big purchase, you have essentially funded it through putting all of that spending on the card and the money accumulating.

In your current account instead another word of warning here because i keep i keep saying it, but it's really important. You have to be extremely disciplined to make sure that you pay the money back on a zero percent card, but you also have to be extra disciplined to not spend the money that you are saving up in your bank account. All right here is a really neat trick next, one that you might not have thought about if you're the sort of person who generally doesn't really use credit cards, or maybe only uses them occasionally and tends to mostly use your debit card. Instead, this one can be really neat and let me explain it if you only need to borrow a relatively small amount of money.

That is less than maybe the total amount you regularly spend per month. You can essentially borrow it without borrowing it by getting a credit card. So let's say at the start of the month you go and take out any credit card. It doesn't even really matter which one it is for this purpose, maybe one with some kind of reward points or cash back.

If you want to, then you start spending on that credit card instead of spending on your debit card and then at some point, probably let's say a month later, you can actually call them up to ensure that this happens a month later to set your statement, dates To be on the right date, your credit card statement will be generated with all of that spending and then from when that statement is generated. You then have 25 days on most credit cards to pay that off with some credit cards, it might be a bit less. So make sure you check the terms and conditions, because some of them can be 19 or 20. uh.

Just make sure you check, and also some credit cards like american express, will take the direct debits not right at the end of that period, but early. So you might want to check that as well but anyway, let's say 25 days, which is for motion and you pay off that credit card in full you're, not rolling it you're, not paying any interest you're, not borrowing it in a sense, buy direct debit. You haven't really borrowed the money because you are paying it off in full, although you kind of have because you've used a credit card, but you got to pay for the entire load of the spending in this month at the beginning, where she took the card at The end of the next month after you've been paid in the month during which you were spending and then once more in the following month, and this is the trick so just by getting the credit card and not really actually borrowing on it, but repaying it in Full you've, essentially given yourself a free loan of one month's worth of your spending, because suddenly all of your spending has begun being delayed by a month. Just remember that you eventually will have to close that gap back.

It's not some kind of free money, but if you need to borrow a small amount, this is a particularly good trick, because you're just delaying the spending, if you like and creating that gap in which you can spend one month's worth of money on something else. Instead, next up, let's talk about how you can essentially take out a loan without taking a loan and by paying far less than you would for taking a loan. Some credit cards in the uk allow you to do something called a money transfer now only some of them do the majority. Actually, don't so you'll need to go and do a search of money, transfer, credit cards and just look around the comparison tables.

A money transfer is different to a balance transfer. It is a way of borrowing money from a credit card by transferring it from the credit card to your current account. If you try to do that without a money transfer on a different credit card by, for example, taking cash out, that will cost you a lot. You do not want to do that.

Cash withdrawals most of the time cost three percent in fees, sometimes even higher than that, and very very high interest, usually much higher than for regular credit card purchases and cash transactions are also reported to credit reference agencies separately to the rest of the balances. So it's also going to negatively affect your credit profile. So definitely do not do that, but you can get these special money transfer credit cards where you can transfer money from your credit card to your bank account and not pay any interest on that money that you just sent for a period at the moment. The maximum is relatively short, it's only about 16 months.

It used to be quite a lot more, but i'm guessing that these numbers have come down a lot because of the economic situation. That's happened over the last two years. You will have to pay a fee here and the fee is reasonably high. It's at the moment about four percent, but that's still not too bad you're getting a one year and four month period of zero percent, borrowing for paying that one of four percent fee, and that is still much cheaper than many loans out there, especially for lower amounts.

Because the period is so short, you can actually do a combination of this trick with the balance transfer later on. So after that one year and four months you could go and get a zero percent balance transfer credit card. Remember you can get 27 months for just a one percent fee at the moment and if you were to do that, you'll essentially have a three and a half year loan, roughly for a total cost of five percent in terms of fees. And if you divide that five percent over three and a half years that is cheaper than pretty much any loan you can ever get just remember.

You have to be super disciplined to make this work because it is so so risky where you can get yourself into trouble. If you don't make the repayments and get yourself out, you don't want to perpetually sit transferring balances from one credit card to another forever, because you haven't figured out how to repay it. You have to make the minimum repayments and you have to shift your balance at the right time and at the time when you want to shift your balance, if you're doing that, you have to have good enough credits to qualify for those good balance, transfer credit cards When a time comes, and if you there is a risk that the economy might implode or something else will happen and those balance transfer cards are not available exactly at the time when you need them. So there are all these risks for you to consider.

Make sure that you are happy with them, so there you have it these credit card tricks might not be very common, or maybe some of them not very obvious. But if you do need to borrow money, they can be a really great way of saving a lot on the cost of borrowing by being clever with using credit cards instead of some of the alternative options. If you found this video useful i'd really appreciate if you could just go and hit that like button for the youtube algorithm, just turn it blue, so that more people can watch this video. Thank you so much for watching.

I really really appreciate it and, as always i'll see you guys later, you.