Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • LolaPear
    • By LolaPear 11th Jan 18, 7:54 PM
    • 15Posts
    • 8Thanks
    LolaPear
    Capital One - 70p Overlimit
    • #1
    • 11th Jan 18, 7:54 PM
    Capital One - 70p Overlimit 11th Jan 18 at 7:54 PM
    Made a purchase today which brought my available balance down to 20p - this wouldn't be a problem normally as my card is 0% but guess what... after it went through, it occurred to me that my statement is issued after midnight tonight and they are slapping on 90p cash interest!

    This will take my account overlimit by around 70 pence. 12th Jan will by my fourth statement since having the card + my last 3 statements since opening the account are clean (no late payment or overlimit)

    I did some search around the MSE forum... some have had the £12 default waived as it was under £1.00 in their case (like me) and others state that there is no mercy. All for the sake of 70 flaming pence!

    I am still developing my credit file and an over-limit mark will destroy all the hard work I have been building for months! I might not get accepted for a card for a year!

    I made a payment of £2.00 to my account via Capital One app with debit card.. it takes 2 days to apply to the balance apparently, which is deliberate because card payments these days are instant unlike wire transfers... I am clinging onto the hope that the system will acknowledge the £2 but doubt it will as the banks don't communicate after 17:00 pm.

    Anyone else have any advice about this?
    Last edited by LolaPear; 11-01-2018 at 7:57 PM.
Page 2
    • chattychappy
    • By chattychappy 12th Jan 18, 10:10 AM
    • 6,531 Posts
    • 3,456 Thanks
    chattychappy
    What will have a bigger impact in your case is that you are utilising 100% of your available credit limit and making cash withdrawals on a credit card.
    ...
    certainly not drawing cash unless it is an absolute emergency
    Originally posted by TheBanker
    I'm not clear why the OP incurred cash interest. It might be through gambling/"cash like" transactions. Certainly this is an expensive way to obtain credit.

    I agree with you whilst the OP is close to the limit and/or paying minimums only. It could indicate distess to a lender. Otherwise I don't think cash transactions have any impact at all. I'm taking cash out of ATMs every week (on Clarity/Zero). I've never had a problem obtaining credit and my Experian score (for those who believe in such things) is 999.
    • TheBanker
    • By TheBanker 12th Jan 18, 8:05 PM
    • 537 Posts
    • 1,443 Thanks
    TheBanker
    I agree with you whilst the OP is close to the limit and/or paying minimums only. It could indicate distess to a lender. Otherwise I don't think cash transactions have any impact at all. I'm taking cash out of ATMs every week (on Clarity/Zero). I've never had a problem obtaining credit and my Experian score (for those who believe in such things) is 999.
    Originally posted by chattychappy
    It all depends on the lender. If everything else is ok, then cash withdrawals won't cause a major issue. If you're sailing close to the wind on other aspects, it could be the tipping point. If lenders weren't interested in this information it wouldn't be reported.
    Make £10 a day challenge: Jan-18: £99.74 / £310
    • chattychappy
    • By chattychappy 12th Jan 18, 10:28 PM
    • 6,531 Posts
    • 3,456 Thanks
    chattychappy
    It all depends on the lender. If everything else is ok, then cash withdrawals won't cause a major issue. If you're sailing close to the wind on other aspects, it could be the tipping point. If lenders weren't interested in this information it wouldn't be reported.
    Originally posted by TheBanker
    Well, that makes sense and is pretty much my view.

    But do you have any specific knowledge, or are you guesstimating which is what I'm doing (based on my experience)?
    • A4445
    • By A4445 12th Jan 18, 11:14 PM
    • 678 Posts
    • 307 Thanks
    A4445
    If your worried that cash advances may effect credit ratings, creation cards don't report cash advances to any CRA. They only report balance and if account is up to date. I use the Creation everyday card abroad.
    • zx81
    • By zx81 12th Jan 18, 11:17 PM
    • 14,872 Posts
    • 15,698 Thanks
    zx81
    Well, that makes sense and is pretty much my view.

    But do you have any specific knowledge, or are you guesstimating which is what I'm doing (based on my experience)?
    Originally posted by chattychappy
    In the world of sub-prime, cash advances are certainly taken as a red flag.

    One cash advance is more often than not the start of a trend, and such accounts are monitored closely, with limits capped and rates raised as a precaution.
    Last edited by zx81; 12-01-2018 at 11:19 PM.
    • chattychappy
    • By chattychappy 12th Jan 18, 11:39 PM
    • 6,531 Posts
    • 3,456 Thanks
    chattychappy
    In the world of sub-prime, cash advances are certainly taken as a red flag.

    One cash advance is more often than not the start of a trend, and such accounts are monitored closely, with limits capped and rates raised as a precaution.
    Originally posted by zx81
    Yep, as I say I think it's only negative when taken with other factors. I am using Clarity/Zero probably 50 times a year for ATM withdrawals (historically more often). Whatever people think of Experian scores, the fact is they haven't even knocked off one point (my score is 999) for my ATM activities. Both cards have increased my limits. Clarity, I'm still on the original interest rate (APR 12.9%, I think). Zero, I always had a high rate and it has been stuck at 35% APR for a few years now after starting at 28% or thereabouts.

    It would be really handy if we had an insider on here who could share a few secrets. I think you are probably right, but often mantras get repeated and recycled and become received wisdom. (For example, the usual mantra that nobody sees your experian score except you - which I used to recycle myself. Another one was that you can't cancel a CPA with your lender, a long time after the law changed.)

    One regular poster processes S75 claims as part of his/her job and knows exactly how his/her bank makes decisions - but told me via PM that they didn't want to reveal this for professional reasons. I suppose ditto for anyone on here who is involved in setting up CC algorithms.
    • zx81
    • By zx81 12th Jan 18, 11:46 PM
    • 14,872 Posts
    • 15,698 Thanks
    zx81
    It would be really handy if we had an insider on here who could share a few secrets.
    Originally posted by chattychappy
    I'm pretty sure there are. In fact, I know there are.

    But it's hard to give too much away without revealing who you are or where you may have worked.

    I'm happy to declare that I have 20 years experience in credit cards, from the top to the bottom of the market, and a few places in between, but that's as far as I would go.

    But you're absolutely right that it varies by lender. At the top end, cash advances are rarely seen as a cause for concern, simply because customers tend to use them for convenience, rather than out of desperation.
    • chattychappy
    • By chattychappy 13th Jan 18, 12:00 AM
    • 6,531 Posts
    • 3,456 Thanks
    chattychappy
    Since it's confession time, I'm a lawyer specialised in financial regulation and compliance. But I get distracted away from that these days. Started in IT.
    • zx81
    • By zx81 13th Jan 18, 12:02 AM
    • 14,872 Posts
    • 15,698 Thanks
    zx81
    I'm a lawyer specialised in financial regulation and compliance.
    Originally posted by chattychappy
    Please accept my sincere condolences.
    • TheBanker
    • By TheBanker 13th Jan 18, 8:12 AM
    • 537 Posts
    • 1,443 Thanks
    TheBanker
    Well, that makes sense and is pretty much my view.

    But do you have any specific knowledge, or are you guesstimating which is what I'm doing (based on my experience)?
    Originally posted by chattychappy
    I am not an underwriter, but I have specific knowledge of one lender's underwriting procedures for credit cards and overdrafts. I do not have specific knowledge of how the automated scoring works (as it has been several years since I worked in this area) but I do know what the underwriters look for if a case is referred to them for manual review, which borderline cases are.
    Make £10 a day challenge: Jan-18: £99.74 / £310
    • Chrysalis
    • By Chrysalis 16th Jan 18, 10:00 PM
    • 2,116 Posts
    • 977 Thanks
    Chrysalis
    In the world of sub-prime, cash advances are certainly taken as a red flag.

    One cash advance is more often than not the start of a trend, and such accounts are monitored closely, with limits capped and rates raised as a precaution.
    Originally posted by zx81
    Not happy to learn this, my sister used my additional cardholder card in an ATM at least twice last year that I am aware off, if this is on my credit file I am annoyed, although I assume the longer this goes into history the lesser the impact.
    • A4445
    • By A4445 16th Jan 18, 10:18 PM
    • 678 Posts
    • 307 Thanks
    A4445
    Not happy to learn this, my sister used my additional cardholder card in an ATM at least twice last year that I am aware off, if this is on my credit file I am annoyed, although I assume the longer this goes into history the lesser the impact.
    Originally posted by Chrysalis
    The odd cash advance here and there isn't really much of an issue in my opinion, I wouldn't worry to much about it. The main thing is cash advances on an AQUA card are very expensive, have you tired to look at main stream card? Or is there issues with your credit file?
    • PeacefulWaters
    • By PeacefulWaters 17th Jan 18, 6:34 AM
    • 7,539 Posts
    • 9,428 Thanks
    PeacefulWaters
    Not happy to learn this, my sister used my additional cardholder card in an ATM at least twice last year that I am aware off, if this is on my credit file I am annoyed, although I assume the longer this goes into history the lesser the impact.
    Originally posted by Chrysalis
    Cash advances on their own aren't an issue.

    Cash advances and escalating balance will set alarm bells ringing though.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

216Posts Today

1,941Users online

Martin's Twitter
  • RT @clq: @MartinSLewis You hit that one right out of the park. It might be the Tweet of the Century. I don't think anyone can do any Batter?

  • You've run-out of puns. That's a bit of a googly, maybe I can help break your duck, though it is s sticky wicket, t? https://t.co/nJT51NpXfO

  • RT @richlaing: @MartinSLewis Obviously spot poll but interested in the fact that 9% would opt out of donation. Interested to hear reasons w?

  • Follow Martin