Credit Card Loans: To Use or Not To Use

I have mentioned quite a few times in this blog that I have several credit cards. And I think for that reason, credit card agents are always calling me- offering all sorts of things. It can be annoying at times but I just learned to deal with it. One of my goals next year is to get rid of some of my cards. I really just need one or two. Anyway, the reason for this post is because a credit card company recently sent me a check. Again, it is a loan offer. Actually I have already availed a loan offer from the same card company less than a month ago (I have two cards with them) so I am surprised to received another insta-cash offer again. The offer last time was for Php16,000 with 0.5% interest per month.

This time, the offer was much higher (Php40,000) and it has an attractive offer of 0% interest. Of course it is impossible that credit card companies would offer a loan without an interest so I check the terms and conditions and saw that they would charge a one time service fee that is 6% of the loan amount. Looking closely one can easily see that they would still charge 0.5% interest per month that way.

Anyway I sent the check back to the card company because I again can’t encash it to my bank account because the check bears my maiden name. They promise to resend it again after one week. I did that not because I would avail the loan. I just want to keep it in case of emergency since I still have more than a month to decide before the offer expires.

I kind of hate it because I want to eliminate credit card debts. However I am also tempted because I know that they are offering me loan with a very low interest rate and that any people would grab the chance to use it if they are given the opportunity I have.

I am also tempted to use the money to buy the new laptop I want or the aircon and ref my husband and I are planning to purchase. But after much thinking, I know that the wise decision is not to use it. Why? Because I need to focus on my goal of more savings and less debt. And I should only avail a loan if I can use that money for business so the money will grow and I can afford to pay the interest

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Withdrawing Paypal Money Through Citibank Credit card

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The last time I attempted to withdraw money from my paypal account, I encountered a problem. The bank officer of Banco de Oro called to let me know that they can’t process the withdrawal because the name in my paypal account is different from the name registered in my bank account.

This is because my paypal account still has my maiden name while my bank account already bears my married name. I did not know what to do to remedy the situation then nor did the bank officer so after much prodding and pleading, the bank manager gave in and let me withdraw the money. They let it pass because it was the first time it happened and I have withdrawn paypal money before using the same bank account with my maiden name.

In the meantime, since name change in my account can take time, I opted to try another way to withdraw – that is by using credit cards (since I still use my maiden name in some of my cards). I decided to use my Citibank Shell Visa card to withdraw since I heard that paypal only allows withdrawal for credit cards with a  VISA logo (am not so sure with that).

I withdraw the money in paypal on October 29 and called Citibank customer service at 9995-999 on November 2 to check and they said the money is still floating. The money was credited to my account on November 4 so the fund transfer took approximately 6 days including the weekends and holidays. I find it pretty fast. I then requested for an overpayment cheque via phone and the agent told me that they will deliver the cheque to my billing address within seven days. I can then encash the cheque to any Citibank branch or simply deposit it to my bank account  Overpayment cheque has no charge.

Good thing I do not have any payable balance in my account so I was able to request an overpayment cheque. If i have a payable balance, my paypal money will be consider as payment so I can’t withdraw it.

Withdrawing money through Citibank using an overpayment cheque takes some time so there is another option for those who need to get their money fast. That is through the Cash Advance method but it has some charges.

Drawbacks:

Some Citibank customer service agents are unaware about paypal and they have the tendency to give confusing or wrong advice. One officer told me that I can only withdraw my money if I closed my account. It pays to be aware of the procedures so you don’t get misled.

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