MilesBuzz! - Funding an account with a CC




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chris k
Nov 3, 09, 2:02 pm
I have a question about funding accounts from a CC. Sorry if these seem like basic questions. I did some search function work on this site but am still confused. If I am correct, the basic idea is to fund an account (as a purchase) from a rewards card, say for miles, and then look to withdraw the funds to pay the card off. Are people only doing this with savings accounts (I see reference to Citi Ultimate, for example, but that seems to be limited to 1 time per account and maybe only $1K now) or are folks doing trading type accounts. For example:


http://www.fxsolutions.com/accounts/deposit-funds.asp

It would seem I could fund from a CC $10K over a 30 day period (lets say right after my billing cycle I do this with two $5K transactions on consecutive days) and then in 30 or so days withdraw with no fees. They mail a check within a couple of days. At that point my billing cycle would have again ended and I have a few weeks buffer to get the check, cash, and pay the CC.

Is this the basics of this? Anything I am misunderstanding that could cause me a world of hurt down the road?

Are there other ways I should be approaching this, like a CC funded savings account, that can yield substantial miles?

Thanks in advance!


deant
Nov 3, 09, 6:07 pm
You would be better off posting this in the existing thread on this subject. All of your questions have been answered there:

http://www.flyertalk.com/forum/milesbuzz/976907-using-credit-card-fund-new-online-savings-account.html

Also, for the link you provided, they "reserve" the right to refund to the CC that had been charged and that is probably what they would do. Based on that assumption, you would have no gain in miles.



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