Withdrawing cash on credit cards

juicylucy

I have read on here (somewhere) that you should NEVER EVER EVER withdraw cash on a credit card - but do you think I can find it anywhere? D'oh!

Can someone please enlighten me as to what the penalties are for withdrawing cash off a CC? My not so clever husband thinks it's a good idea to take out a credit card and withdraw the money out to make a purchase instead of paying the 2% the retailer in question charges for using a credit card. However, I'm sure I know differently - please help back this up with evidence!

Thank you all in advance for your help.

Love Lucy x

PS I've been lurking for a few months and all I can say is WOW I'm so glad I found this site! I haven't contributed before now because I feel like a complete novice compared to all you clever money bods Hopefully I'll contribute lots more as time goes on and I become just as savvy as you lot! :T

mad

I think there is loads more on this but from my limited knowledge getting cash advances is not a good idea. even if you have 0% period on purchases, cash advances will attract interest immediately. I am sure more help from the people on this site will be on it's way

grumbler

juicylucy wrote:

...My not so clever husband thinks it's a good idea to take out a credit card and withdraw the money out to make a purchase instead of paying the 2% the retailer in question charges for using a credit card.

What retailers? The only I know that charge for paying by a CC are car dealers and travel agencies.

Typical drawbacks of withdrawing cash from CC:
1. The same 2% (min. £2)
2. No interest free period. Interest is charged from the date of transactions. On purchases interest-free period is up to about 2 months.
3. Higher interest rate than on purchases (not for all cards).