Interest-free Cash loan for 30 days

While funding for my stock purchases after T+3 recently, I discovered I can pay through my credit card. It is not considered as a cash advance, but as a "swipe" card process that is equivalent to swiping your card in restaurants or retail malls.

The only bank in Singapore that allows you to do this is DBS/POSB. You go to internet banking and go to Bill Payment. As my stock broking firm is Phillips, I add a new biller Phillips, my account number is 20(broker code)(6-digit login). For eg, 20XR123456. After I do this, the amount will go into my Phillip Cash Management Account. This cash management account is your account for debiting/crediting when you buy share or sell share respectively.

The trick here is that I have tried 2 times using this bill payment method to pay for my stock purchases. As playing contra for stocks is usually T+3 to T+5, I can now extend the contra period to 1 month simply because I only need to pay back the amount 1 month later when the credit card bill comes.

If you are not buying shares, you do the same thing "swipe" the card to pay to your Phillip cash management account. Afterwhich, you can log on to phillips online and transfer the money in your account back to your POSB savings account. In this case you are actually borrowing the money free of charge. But remember to pay back when the bill comes.

Facilities required:
1) Phillips online trading account aka POEMS (no initial deposit needed for opening)
2) DBS/POSB credit card
3) POSB internet banking

Limitations: Amount you can take is limited to your credit limit which is 2 times of your monthly salary. And you have to repay in full when the bill comes, else normal credit card interest charges apply.

Additional benefit: If you can't repay in 30 days or lesser when the credit bill comes, you can do a balance transfer to other banks at 0% interest pa, but with one-time processing fee of about 6% or lesser. But afterall, this is still cheap cash loan compared to Cash Advance at 24%pa