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    Withdrawing money at an ATM using credit card

    Hi, i have a spare credit card with nothing on it. Just wondering if i was to withdraw money from a cash machine, but was gonna pay it back in full next month.....would i still get hammered with interest on it?

    19 Comments

    with credit cards you are allowed a certain amount of cash withdrawals. say maybe £500 and once you have used that even if you pay it all back you can't use it again. so it all depends if you've withdrawn csh before now?
    if not then fill ya boots

    Original Poster

    no never, but was just a small amount like £100 i was gonna draw out

    should be fine - you pay a charge for withdrawing the money at the ATM and your bank charges you for taking cash on the card too.

    I thought that cash withdrawels accrued interest from day 1, no interest free period.

    yeah - so pay it back quick

    It depends on the card provider. Check the T&Cs on their website.

    Yeah but if you withdraw £100 you will be paying something stupid like 30% for the time it takes from withdraw to statement day (unless you pay it off manually quicker). Plus the £3 fee at the atm

    Original Poster

    pinkleponkle

    Yeah but if you withdraw £100 you will be paying something stupid like … Yeah but if you withdraw £100 you will be paying something stupid like 30% for the time it takes from withdraw to statement day (unless you pay it off manually quicker). Plus the £3 fee at the atm



    Och, sod that then

    With it being short term though even 30% will be just a few quid.

    arcangel111

    should be fine - you pay a charge for withdrawing the money at the ATM … should be fine - you pay a charge for withdrawing the money at the ATM and your bank charges you for taking cash on the card too.



    Not every cash machine will charge you for withdrawing. That only tends to be the ones that you find in shops and pubs. Unless I'm very much mistaken, you wont get charged for withdrawing from a typical hole in the wall machine. You'll get charged the cash fees by your credit card provider regardless, though.

    cookiemonster83

    Not every cash machine will charge you for withdrawing. That only tends … Not every cash machine will charge you for withdrawing. That only tends to be the ones that you find in shops and pubs. Unless I'm very much mistaken, you wont get charged for withdrawing from a typical hole in the wall machine. You'll get charged the cash fees by your credit card provider regardless, though.



    Correct +1.(_;)

    cookiemonster83

    Not every cash machine will charge you for withdrawing. That only tends … Not every cash machine will charge you for withdrawing. That only tends to be the ones that you find in shops and pubs. Unless I'm very much mistaken, you wont get charged for withdrawing from a typical hole in the wall machine. You'll get charged the cash fees by your credit card provider regardless, though.



    Worth noting however, that the card issuer will probably charge a fee for using the ATM on top of taking the cash advance.

    moob

    Worth noting however, that the card issuer will probably charge a fee for … Worth noting however, that the card issuer will probably charge a fee for using the ATM on top of taking the cash advance.



    I can't say I've ever heard of that, but I'm not going to argue the point as I don't know one way or another!
    Edited by: "cookiemonster83" 5th Sep 2010

    moob

    Worth noting however, that the card issuer will probably charge a fee … Worth noting however, that the card issuer will probably charge a fee for using the ATM on top of taking the cash advance.

    n addition to this, the interest rate charged for cash withdrawals is … n addition to this, the interest rate charged for cash withdrawals is usually different that charged for purchases made on your credit card. Unfortunately, in this case different does not mean lower. Some banks will charge over 28% APR for cash withdrawals, a huge increase on the interest charged by most cards on purchases. Additionally, when compared to the 5% base rate set by the Bank of England, it becomes clear why it makes more financial sense to use a debit card for cash withdrawals. As per usual when you start to pay off the debt on your credit card, the cheapest debts will be paid off first, something known as a negative payment hierarchy. This means that you will be continue to be charged large amounts of interest on the withdrawals you have made until you have paid off the entire card, something which could land you in a lot of debt.As if the extra interest wasn’t enough, if you use a credit card you will also be charged a cash-withdrawal fee of up to 3% of the amount you withdraw, with a minimum fee being £3. While all the above charges apply in the UK, if you want to withdraw cash abroad using your credit card, you will also have to pay extra in addition to the charges already listed. The currency conversion fee adds an extra 2.75% onto the cost of using a cash machine abroad in addition to the fees already in place. You will receive a credit–cheque card from your bank which can be used abroad, but check the terms and conditions that come with the card before travelling so you know exactly what kind of debt you might incur if you use your card for cash withdrawals.



    Just posting this for info:

    moob

    Just posting this for info:



    That just sounds to me like the cash withdrawal fee, rather than an additional ATM fee! My card provider certainly doesn't charge me twice, but I can't speak for other providers!

    Yep, cash withdrawal fee, and interest from the instant you withdraw. My husband used the wrong card once to take out a tenner, got charged £3.39 for the privilege.

    Yeah, it's a cash withdrawal fee for using the ATM - as I said above, these are charged from most credit card issuers on top of the interest charged for the cash advance.

    moob

    Yeah, it's a cash withdrawal fee for using the ATM - as I said above, … Yeah, it's a cash withdrawal fee for using the ATM - as I said above, these are charged from most credit card issuers on top of the interest charged for the cash advance.



    Ah, when you first said 'cash advance', I thought you were referring to the set fee for withdrawing money, rather than the interest you'd accrue. I thought you were talking about two seperate fixed price charges on top of the interest.
    Edited by: "cookiemonster83" 5th Sep 2010

    you will not get charged anything like 30% interest unless your apr for cash withdrawls is 360%

    If you take £100 and your cash interest APR is 30% (this is high and unlikely but for arguments sake)

    Then your monthly interest rate would be 2.5%

    So if you took £100 out then the only interest you would accrue over a whole month is £2.50, so with your cash withdrawl fee and interest I cannot see you paying more than a £5/£6 tops but it all depends on your issuer

    Now becomes the hard part because if you take a few days to pay it off after the statement then you will have accrued more interest in a new month and that will appear again on the next statement even if paying off in full, so my advice is to ring up the bank the evening of the day you know the statement is printed and pay straight away.

    Edited by: "DJNG22" 5th Sep 2010

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