Accidental HSBC credit card cash withdrawal

intalex

I've just accidentally used my credit card (instead of debit card) to draw a small amount (£20), and only realised after the withdrawal that I made a mistake. What is the best I can do to cut my losses as a result of this accident, and roughly how much (in interest and charges) would I expect to pay as a minimum as a result of this? Thanks in advance!

Swans1912

intalex wrote: »

I've just accidentally used my credit card (instead of debit card) to draw a small amount (£20), and only realised after the withdrawal that I made a mistake. What is the best I can do to cut my losses as a result of this accident, and roughly how much (in interest and charges) would I expect to pay as a minimum as a result of this? Thanks in advance!

WHat do you have on the card atm? Include a break down of rates and any promo period.

intalex

I use my credit card for all my purchases, and pay it off in full at the end of each month. It's probably my habit of pulling the card out a lot that led to the accident when I was withdrawing the cash.

I don't know the APR rate or the cash withdrawal charges for my card, and I couldn't really find it from HSBC's website. However, what I have just done is to effect an immediate payment of my last credit card bill, plus the withdrawn £20, plus an additional £2.50 to cover the withdrawal charge (I'm assuming I'll be charged no interest since I'm paying back the withdrawn £20 on the same date as the withdrawal). My refined question is whether I would now be charged interest on all my purchases subsequent to my last credit card bill.

YorkshireBoy

£2.50 cash advance fee and interest accruing on the £20 (or £22.50) at circa 24.9% APR, so roughly 34p per month until you completely clear the entire balance on the card.

Unless you overpay to create a small positive balance you'll have to clear two consecutive statements in full to stop any residual interest.

A couple of tips:

Set a different PIN for your debit and credit cards.

Keep your credit card in a different section of your wallet/purse, and well away from your debit cards.

intalex

YorkshireBoy wrote: »

so roughly 34p per month until you completely clear the entire balance on the card.

Does that mean I should also pay off all purchases which I made subsequent to my last credit card bill? Also, how does allocation of payments to credit card debt work? Is it on a first in first out basis, or do payments offset chargeable debt first, and interest-free debt later?

PS> Cheers for the tips, I think I'll change the PIN on my credit card.

Swans1912

intalex, Lucky you pay it off in full each month otherwise your cash withdrawal would be the last thing to of been paid off! Only 34p per month but it all counts!

YorkshireBoy

http://www.hsbc.co.uk/1/2/personal/credit-cards/more-info;jsessionid=0000z4EP8t10GK1e7EexII-axUj:12c58t9vd

Click "interest rates" to see the info for new customers. In the absence of your own T&C's, as amended by any notice of variation, it's the best you have to go on.

morphine

intalex I did the same thing once ... learnt the lesson the difficult way ... I think the best way is to call the customer service and tell them you would like to make a payment towards your cash withdrawal .... thats what I did and reduced my interest charges though they will charge you cash withdrawal fees.

Another way would be to pop into a branch and tell them you would like to clear the cash withdrawal on your credit card.

You could also try making an online payment into your credit card account from any debit/savings/current account and write them a online secure message about your payment towards the cash withdrawal by logging into your account. This has worked for a friend of mine.

I hope these help.

ShelfStacker_3

You won't get any interest on purchases as a result of a credit card cash withdrawal. So long as the entire balance is paid off, the amount of interest will be miniscule - about 10p I'm guessing.

intalex

ShelfStacker wrote: »

You won't get any interest on purchases as a result of a credit card cash withdrawal. So long as the entire balance is paid off, the amount of interest will be miniscule - about 10p I'm guessing.

My situation is as follows:-
(i) I received a bill of £x for the purchases made up to 26 Jan 09, and this bill is payable by 23 Feb 09.
(ii) I have spent £y for further purchases from 27 Jan 09 until now.
(iii) I accidentally withdrew £20 today using my credit card.
(iv) I have effected an immediate payment for £x + £20 + £2.50 into my credit card.

I know that the first £x of my payment will be allocated to my last bill of £x. My only concern now is whether the excess £22.50 will be allocated to my debt of £y (the interest-free component) or whether it will be allocated to my cash withdrawal (£20) today along with the withdrawal charge (£2.50).

I have also sent a note via secure e-message explaining that it was a mistake, and that I have made the above payment with the intention of paying my last bill as well as to cover today's withdrawal and accompanying charge. Just have to wait and see what they say.

YorkshireBoy

intalex wrote: »

I know that the first £x of my payment will be allocated to my last bill of £x. My only concern now is whether the excess £22.50 will be allocated to my debt of £y (the interest-free component) or whether it will be allocated to my cash withdrawal (£20) today along with the withdrawal charge (£2.50).

It'll go towards £y.

You need to pay £x + £y + £20 + £2.50 + £1, and then possibly wait for a zero balance statement to ensure you stop the interest.