Hi All!
I applied and got approved for this deal I found on OzBargain - https://www.ozbargain.com.au/node/173673 (CITIBANK Personal Loan from 3.9% Upto $60k for 3 Years). It made much more sense to use this deal than money off our homeloan offset account to buy a 2nd car and will defiantly pay it off in less than 3 years.
I called up to activate the offer and withdraw the funds via cheque to self, and was reminded of the $129 establishment fee that will be charged to the account upon the first statement being issued after activation. I knew about about this fee so there were no surprises there.. however I asked to confirm that I was able to pay that fee off the credit card prior to paying off the balance withdrawal amount to avoid paying >19% p.a. interest on the fee. I was told it was not possible, as balance transfers get paid off first. So my options are either activate the card, wait a month, pay the fee, then withdrawal the balance. Or pay ~$30 year interest on a stupid $129 fee. What a joke! I'm keen to get the cash soon as I have my eye on a few cars.
Has anyone managed to find a way around this? All I could think of is maybe activate the account, then pay $129 onto it immediately, then draw the balance. But I think this may end up just coming off the balance anyway.
Any tips appreciated!
That sounds like a bad one by Citibank. What if you pay the $129 off first, and then after a couple of days wait(Especially wait if a weekend) for it to get credited I would to the account, then withdraw the amount that you want. I would even add $2 in case there is some latent interest on the $129. Making it $131 up front payment. Instead of your balance being -$129 it should show up as +$2. (Interest, if any, on the $129 will only show up at the end of the month.) Worth a try, and little to lose. Let us know the result in a month or so please.