Withdrawing cash

beedeedee

For reasons I don't want to go into here - if I withdraw, say £2000 from my Barclaycard at an ATM how do I go about avoiding any interest? I'm aware that it starts from the moment I actually withdraw - but if I pay off in full for the next two months, would that be OK? or should I pay off the next statement in full, then overpay the estimated interest - would that work also? I'm not absolutely sure.

tripled

There is no interest free period on cash withdrawls, so you wouldn't be able to avoid interest entirely. Some banks may also charge you a transaction fee.

YorkshireBoy

beedeedee wrote: »

if I pay off in full for the next two months, would that be OK? or should I pay off the next statement in full, then overpay the estimated interest - would that work also? I'm not absolutely sure.

Should be somewhere near, yes, but in addition you'll also need to clear any existing balance with the payment due to the negative payment hierarchy. I'd also overpay slightly to make sure.

It's very expensive though; £60 cash advance fee and around £40 per month interest at 26.9% APR.

You'll possibly need:

1. To make 4 x £500 ATM withdrawals (will they block the card after the 2nd/3rd?)

2. To visit a branch.

3. A £4K credit limit, if the max cash balance allowed is 50% of the credit limit.

You will almost certainly damage your relationship/credit rating with Barclays (and anyone else searching your credit file if the cash balance is reported).

Barneysmom

If it's any help, my bank let me have a £3000 overdraft for a few months while I was waiting for some money to come through.
Could you ask your bank, mine was TSB bless 'em.

ShelfStacker_3

You won't be able to avoid interest. You'll definitely incur a huge fee (about £50 by most card issuer's standards), plus a 20% plus rate of interest on the cash withdrawal - and it'll always be the withdrawal that's paid off last, so you'd have to pay off the whole card to stop paying that silly rate of interest. Really - don't do it.

Kavanne

What is your credit limit? Some of my CCs have a 50% cash limit and also a daily withdrawal limit (£300 on one card, for example) so you might not be able to take that much out.