Taking cash out with a Capital one credit card?

9
Posted 9th Jan
I gave my Dad the wrong card and he ended up withdrawing £100 on my credit card. I've heard things about the interest being massive. I phoned Capital one and the agent said there is a £3 charge and £2.25 per month, this sounds really low and I was relieved. I asked him to log it and made sure the conversation was recorded, is this correct though?
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9 Comments
Put £100 on the card immediately....that's still a lot to pay for taking £100 out. Money you put back on the card pays off cash withdrawals first.
Edited by: "backyard" 9th Jan
backyard09/01/2020 23:10

Put £100 on the card immediately....that's still a lot to pay for taking …Put £100 on the card immediately....that's still a lot to pay for taking £100 out. Money you put back on the card pays off cash withdrawals first.


Ah thanks, I was reading conflicting things about not being able to pay it off until the next month.
£2.25 per month on £100 is 2.25% per month that translates to nearly 30%APR which seems right to me. Unless you really cannot pay off the £100 and happy to pay £2.25 (plus the withdrawal charge of £3), then that is the amount Capital will charge.
Seancousins09/01/2020 23:15

Ah thanks, I was reading conflicting things about not being able to pay it …Ah thanks, I was reading conflicting things about not being able to pay it off until the next month.


The cost sounds about correct, but... depending how Cap1 reports cash transactions to CRAs, it may detrimentally affect some future lending eligibility (not credit rating) as some lenders may interpret cash withdrawal on credit card as emergency loan. If you can afford to it may be prudent to repay the cash transaction and associated costs at the earliest opportunity, or even sooner.
AndyRoyd10/01/2020 03:06

The cost sounds about correct, but... depending how Cap1 reports cash …The cost sounds about correct, but... depending how Cap1 reports cash transactions to CRAs, it may detrimentally affect some future lending eligibility (not credit rating) as some lenders may interpret cash withdrawal on credit card as emergency loan. If you can afford to it may be prudent to repay the cash transaction and associated costs at the earliest opportunity, or even sooner.



A one off transaction doesn't cause any damage. A habit is seen as very profitable by the bank if the bill keeps getting paid in full.
bozo00711/01/2020 09:16

A one off transaction doesn't cause any damage. A habit is seen as very …A one off transaction doesn't cause any damage. A habit is seen as very profitable by the bank if the bill keeps getting paid in full.


agreed

i accidentally used a credit card to pay for travel money, not knowing it is treated as a cash withdrawal. hit with a 3% fee but paid it off straight away and seemingly no detrimental impact to credit report.
adamspencer9511/01/2020 09:33

agreedi accidentally used a credit card to pay for travel money, not …agreedi accidentally used a credit card to pay for travel money, not knowing it is treated as a cash withdrawal. hit with a 3% fee but paid it off straight away and seemingly no detrimental impact to credit report.


You may have misread earlier comment. There is unlikely to be any "damage" to credit report but cash from CC may be a qualifier to subsequently exclude some applicants from certain credit providers' products, similar to how some providers will decline applicants with "more than 2 / 3 / 4 / xx hard credit searches within preceding mm months", either uniqueky or combined with other qualifying criteria.
AndyRoyd11/01/2020 13:02

You may have misread earlier comment. There is unlikely to be any "damage" …You may have misread earlier comment. There is unlikely to be any "damage" to credit report but cash from CC may be a qualifier to subsequently exclude some applicants from certain credit providers' products, similar to how some providers will decline applicants with "more than 2 / 3 / 4 / xx hard credit searches within preceding mm months", either uniqueky or combined with other qualifying criteria.


Is one cash withdrawal likely to affect this long term?
Seancousins11/01/2020 13:06

Is one cash withdrawal likely to affect this long term?


Most events that impact credit applications have a finite subsequent duration, but different credit provuders will apply different mm durations to the (un)acceptable eligibility concept of "...x event(s) within mm months".
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