Convert your credit cards to cash

November 12, 2020

Convert your credits into cash! Use credit cards to launch your business idea

How to convert your credit card to cash

A credit card is defined as a payment card issued by a card issuer (often the bank) to cardholders so that the user can pay a seller for their services or goods. The user promises the issuer that he will pay the agreed amounts and all other charges. The card holder has a revolving account created by the issuer to borrow money to pay the merchant.

Accessing a credit facility can sometimes be very difficult for some people due to the low credit rating and lack of securities.

This article will teach you how to easily convert your credit cards to cash at a very low interest rate.

Follow these simple steps to convert your credit to cash:

  • Step One: Identify a credit card that will offer you the highest possible amount on the cash advance. Make sure you get this card.
  • Step two: Get four or three credit cards that charge 0% APR (annual percentage rate) when you transfer your balances for at least 12 months. Banks usually offer this offer to their customers after taking out a first credit card with them. Banks are always keen to offer credit cards at favorable rates to customers who can get their 1st
  • Step Three: Take the largest amount of cash advance your first credit card can afford. After receiving the amount, immediately transfer it to your other credit cards at an APR of 0%.

You now have a loan repayable in one year with easy payments at 0% APR. Note that the initial cost of your cash loans is probably the lowest you can get in the banking industry. The card on which you take the cash advance will also have zero balances. Invest the money you transferred in the company of your choice, then pay it off for a year without interest. If you need more money, you can repeat this operation.

The benefits of converting your credit card to cash are:

  • You can easily use it multiple times.
  • Instant cash access.
  • Improved credit rating.
  • History and credit checks are minimal.
  • You don’t need to use your assets to get credit; thus, it is not secure.
  • Easy monthly payments, linked to your initial credit.


A cardholder should know how to calculate their refunds. The methods used to calculate it are simple.

  1. Get the minimum payment;

You will ask your (bank) card issuer to provide you with the minimum payment they need from you.

  1. Calculate the amount of interest;

With each installment you pay, one part is used to produce the principal balance while the other erases the accrued interest.

How to calculate the interest charged to you:

  • Check with your card issuer to find out the interest rate charged on your card. You might, for example, find that the interest rate is 12% APR.
  • Convert the annual rate to a monthly rate by dividing it by 12 months to get 1% per month.

If your card issuer charges this per day, divide the annual rate by 365 days to get an interest rate of 0.0328% per day.

  • Multiply 1%, which is the monthly rate, by your outstanding balance. Let’s use £ 5,000 as the balance due in this case.

Use 0.0328% to get the daily rate if that’s the method your card issuer uses. So you will multiply 0.0328% by £ 5,000.

  • Your loan interest for the first (monthly) method will be £ 50, while your daily loan interest as the second method will be £ 1.6438.
  • Repeat this process to get the amount to be billed each month or for each day.
  1. Calculate the principal;

The amount that remains after deducting interest from the payment amount or interest amount is called the principal balance. The bank will tell you how much you will need to pay monthly, depending on the amount and length of your loan.

In this case, the monthly repayment amount is £ 113. The monthly interest charged, as stated above, is £ 50. Subtract £ 50 (interest charged) from the first payment of £ 113 to get £ 63; this amount is the principal amount paid. To get the new total loan outstanding, we will subtract £ 63 from £ 5,000, which was the original loan balance, to get £ 4,937 as the original loan balance.

You will use this new outstanding loan amount to calculate the interest charged in the second month, as shown in step two above. It is important to note that the lower the balance owing, the lower the amount of interest charged on your card. This means that if you speed up your loan repayment by paying a larger installment amount, you will end up lowering the loan interest and paying off your loan sooner.

  1. Repeat the above steps for each month;

You should have understood by now that if you use the monthly formula, you will have less calculations, unlike the daily procedure.

With the simple steps described above, you can now easily calculate the interest charged and create an amortization schedule. You can use a spreadsheet when calculating the amount to make your job easier.

  1. Check for variations;

The above formula may vary for the following reasons

  • Some card issuers will charge you an annual fee. In this case, you will need to add these charges to your outstanding balance to calculate the interest to be charged.
  • Sometimes the card issuer may have a variable interest rate. You will therefore have to adjust your calculation according to the new prices.
  • If you missed a payment, which you should avoid, you will need to adjust your calculations to zero. Ignoring an amount will result in higher interest at the end of the period.


With the money you received above, you can invest it in some small businesses to earn more income which will be useful for the repayment.

  1. Bakery

With minimal capital, you can start making products and selling them. The demand for baked goods in the UK is very high. You can opt to rent a food truck and get a seat on the busy streets where passers-by buy your produce. Online advertisements are also very common, launch an online retail site where you advertise your products, your customers will place an order online and deliver the goods to them.

The UK government has lowered VAT from 20% to 5% until January 2021, according to CHANCELLOR Rishi’s announcement on the summer return for accommodation, food and attractions. It’s very favorable for start-ups.

  1. Pet business

You can start a dog walking business with minimum or zero capital. All you need is some training on how to handle pets, and you are good to go. You can easily earn £ 6-10 for half-hour to hour-long walks for a single dog. With experience this can be very lucrative as you can walk multiple dogs at once.

With minimal capital, you can also start an online delivery business. Petfoodindustry has reported a significant increase in the online delivery of pet food. So it’s a very viable business idea.

  1. Hairdressing, nail and beauty companies

With minimal capital, you can start offering barber or hairdressing services. Minimal training may be required to enable you to provide these services. You can also open an online retail site where your customers can seek help from the comfort of their own homes. Hair, nail and beauty service delivery tools don’t have to be cumbersome, and transporting them to your clients’ families won’t be hectic.

  1. Offer plant-based foods

With a large population adopting a healthy lifestyle, the demand for plant-based foods is increasing. Customers have also adapted to online businesses and therefore advertising your items online will allow you to get customers requiring these foods from the comfort of your home. You will only need minimal capital to buy these products for resale.

  1. Writing company

If you have writing skills, you can easily make a kill by offering your freelance services. Many companies will hire you to write blogs, press releases, and web content. You will only need a good internet connection and a good command of English. Over time, you can get referrals that increase your work.

  1. Rental of bike rides

Bikes of suitable quality are quite expensive. With minimal capital, you can buy several bicycles, which you can rent to individuals who wish to cycle for short periods.

  1. Storage and warehouse company

You can start a business that acts as a storage facility for small businesses. Small businesses could rent your space monthly for a fee. Small business items can then be shipped from your warehouse directly to the customer.

  1. Transcription services for different languages

The UK is a multilingual country and although English is the most widely spoken language we have nationals from all over the world. Sometimes it can become difficult to do business because there are people from Russia, Asia, Africa etc. You can learn a new language or find someone who speaks multiple languages ​​and use that to translate for your clients for a fee. With the right clients, this can be a very lucrative business.

  1. Online Nursing Services

A large part of the UK population is made up of the elderly. Many older people may find it difficult to leave their homes to go to health facilities because of their age or illness. With minimal capital, you can start a portal that offers them online doctor consultations and have a nurse visit them. Contract several nurses for a fee to start this business.

  1. Sale of used and vintage items

With minimal capital, you can buy old furniture for your family and friends and refurbish them. Later list these articles on social media platforms and resell them. Over time, you will be able to get customers who sell vintage items that they no longer need and resell them for a profit.

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