November 12, 2020

Convert Credit Into Cash! Use Credit Cards to Launch Your Business Idea

How To Convert Your Credit Card Into 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 they will pay the amounts and all other charges agreed. The cardholder has a revolving account created by the issuer to borrow money to pay the merchant.

Accessing a credit facility may sometimes be very difficult for some people due to low credit ratings and a lack of securities.

This post will teach you how you can easily convert your credit cards into cash at a very low-interest rate.

Follow the following easy steps to convert your credit into cash:

  • First step: Identify a credit card that will offer you the highest possible amount on cash advance. Ensure you acquire this card.
  • Second step: Get four or three credit cards that charge 0% APR (Annual percentage Rate) when transferring your balances for at least 12 months. Banks usually offer their clients this deal after signing up for a first credit card with them. Banks are always eager to offer credit cards at favorable rates to clients who can get their 1st
  • Step Three: Take the most considerable amount of cash advance that your first credit card can allow. After receiving the amount, transfer it to your other credit cards immediately at an APR of 0%.

You now have a loan repayable in a year with easy installments at 0% APR. Note that your cash loans’ initial cost is possibly the lowest you can ever receive in the banking industry. The card you take the cash advance will also have zero balances. Invest the cash you have transferred in the business of your desire, then pay it for a year interest-free. If you need more money, you can repeat this.

The benefits of converting your credit card into cash are:

  • You can easily use it several times.
  • Instant cash access.
  • Credit score improvement.
  • There are minimal background and credit checks.
  • You do not need to use your assets to get the credit; thus, it is unsecured.
  • Easy monthly installments, relating to your initial credit.



A cardholder needs to know how to calculate their repayments. The methods used to calculate this are straightforward.

  1. Get the minimum payment;

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

  1. Calculate the interest amount;

With each installment amount you pay, some amount goes into producing the principal balance while the other will clearing the interest accrued.

How to calculate the interest charged for you:

  • Enquire from your card issuer the interest rate charged on your card. You could, for example, find that the interest rate is 12% APR.
  • Convert the annual rate to monthly by dividing this 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 a 0.0328% interest rate per day.

  • Multiply 1%, which is the monthly rate by your outstanding balance. Let’s use £5000 as your due balance in this case.

Use 0.0328% to get the daily rate if that is the method that your card issuer uses. You will therefore multiply 0.0328% by £5000.

  • 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 charged every month or for each day.
  1. Calculate the principal;

The amount that remains after deducting the interest from the payment amount or interest amount is known as the principal balance.  The bank will tell you the amount you should pay monthly, depending on your loan amount and loan period.

In this case, the monthly repayment amount is £113. The monthly interest charged, as seen above, is £50. Subtract £ 50 (the interest charged) from the first installment of£113 to get £63; this amount is the principal amount paid. To get the new total outstanding loan, we will subtract £ 63 from £5000, which was the initial loan balance, to get £4937 as the original loan balance.

You will use this new outstanding loan figure to calculate interest charged in the second month, as shown in step two above. It’s important to note that the lower the due balance, the lower the interest amount charged to your card. It means that if you accelerate your loan repayment by paying a higher installment amount, you will eventually reduce the loan interest and clear your loan earlier.

  1. Repeat the steps above for each month;

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

With the easy steps shown above, you can now easily calculate the interest charged and create an amortization table. You can use a spreadsheet when calculating the amount to make your work easier.

  1. Check any variations ;

The above formula can vary due to the following reasons

  • Some card issuer will charge you an annual fee. In this case, you will have to add this fee to your outstanding balance to calculate the interest to be charged.
  • At times the card issuer may have a varying interest rate. You will thus have to adjust your calculation as per the new rates.
  • If you have skipped a payment, which you should avoid, you will have to adjust your calculations with zero. Ignoring an amount will lead to higher interest charged by the end of the period.


With the cash you have received above, you can invest it in some small businesses to earn more income, which will come in handy in repayment.

  1. Bakery

With minimal capital, you can start making products and selling them. The demand for baked products in the UK is very high. You may opt to hire a food truck and get a spot at busy streets where passers-by purchase your products. Online advertisements are also widespread, start up an online retail site where you advertise your products, your clients will make an order online, and deliver the goods to them.

The UK government has dropped the VAT from 20% to 5% till January 2021, according to the CHANCELLOR Rishi announcement on the summer statement for accommodation, food, and attractions. It is very favorable for start-ups.

  1. Pets business

You can launch with minimum or zero capital a business for walking dogs. You will only require training on how to handle pets, and you are good to go. You can easily earn £6 to £10 for walks lasting half an hour to one hour for a single dog. With experience, this can be very lucrative as you can walk several dogs at a go.

With minimal capital, you can also launch an online delivery business. Petfoodindustry reported a significant rise in pet food online delivery. It is thus a very viable business idea.

  1. Hair, nail, and beauty businesses

With minimal capital, you can start offering barber services 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 clients can request assistance in the comfort of their homes. The service delivery tools for hair, nail, and beauty are not bulky, and transporting them to your clients’ families will not be hectic.

  1. Offering plant-based foods

With a large population size adopting clean diets lifestyle, there is an increased demand for plant-based foods. Customers have also adapted to online businesses, and therefore advertising your items online will get you clients requiring these foods at the comfort of your home. You will only need minimal capital to purchase these products for reselling.

  1. Copywriting business

If you have copywriting skills, you can easily make a kill by offering your services on freelance. Many companies will hire you to write blogs for them, press releases, and web content. You will only require a good internet connection and good command of English. With time you may get referrals making your work increase.

  1. Bicycle rides rentals

Suitable quality bicycles are quite expensive. With minimal capital, you can purchase several bicycles, which you could rent out to individuals who want to cycle for short periods.

  1. Storage and Warehouse Company

You can start up a company that acts as a storage facility for small businesses. Small businesses could rent your space monthly at a fee. The small business items can later be shipped from your warehouse direct to the customer.

  1. Transcription services for different languages

The UK is a multilingual country and even though English is the most widely spoken language, we have nationals from all over the world. It can sometimes become tough doing business as there are people from Russia, Asia, Africa, etc. You could learn a new language or find a person who speaks multiple languages and employ them to translate to your clients at a fee. With the right clients, this can be a very lucrative business.

  1. Online nurse services

A huge chunk of the UK population consists of the elderly. Many older adults could have difficulty leaving their homes to visit health centers due to their age or illness. With minimal capital, you can start a portal that offers them online doctors’ consultations and request a nurse to visit them. Contract several nurses at a fee to start this business.

  1. Selling of second hand and vintage items

With minimal capital, you can purchase old furniture from family and friends and refurbish them. Later, list these items on social media platforms and resell them. With time you will be able to get clients selling vintage items they no longer require and resell them at a profit.