Positive balance to avoid withdrawl interest?

falloutphil

Hi all,

I'm off overseas shortly, and thanks to the great advice here I've applied for the NatWide Credit Card to avoid paying loading charges etc.

This card is great but obviously still charges you a one off per transaction charge and and interest on any cash advances.

I've read various rumours from googling around that having a positive balance on your credit card may mean you don't get charge interest on the cash advances, as in essence they are not an advance.

This would be great if true for the NatWide card, but I'm suspicious that this would work. Could any clarify?

Thanks,

Phil.

5limJim

falloutphil wrote:

Hi all,

I'm off overseas shortly, and thanks to the great advice here I've applied for the NatWide Credit Card to avoid paying loading charges etc.

This card is great but obviously still charges you a one off per transaction charge and and interest on any cash advances.

I've read various rumours from googling around that having a positive balance on your credit card may mean you don't get charge interest on the cash advances, as in essence they are not an advance.

This would be great if true for the NatWide card, but I'm suspicious that this would work. Could any clarify?

Thanks,

Phil.

Is having a positive balance on a credit card not classed as a form of Money Laundering?

sicker

Try for an Egg Money Card. They give you 4% interest on Positive balances, 1% moneyback paid yearly in March on all you spend and also you can withdraw £500 a day free of charges, again on a positive balance.

John

grumbler

falloutphil wrote:

...I've read various rumours from googling around that having a positive balance on your credit card may mean you don't get charge interest on the cash advances, as in essence they are not an advance.

I don't know about interest, but don't forget about 1.5% (2% from 4/5/06) cash advance fee that you pay anyway. It is worth opening a current account with Nationwide to draw cash abroad.

5limJim wrote:

Is having a positive balance on a credit card not classed as a form of Money Laundering?

No, it is not

sicker wrote:

Try for an Egg Money Card. They give you 4% interest on Positive balances, 1% moneyback paid yearly in March on all you spend and also you can withdraw £500 a day free of charges, again on a positive balance.

Isn't it simpler just to use a debit card for cash withdrawals?

Milarky

The loading of the card will avoid interest charging but won't escape the handling fee at ATMs I'm afraid. This won't even work with Egg since cash machines abroard aren't covered by their 'fee free' withdrawals policy - only ATM use in the UK [IIRC!]

Use of credit cards abroard should be confined to purchases (interest-free for up to 56 days at NW) with settlement from your bank account later. Similarly if you have a NW FlexAccount (current account) you should be able to use this at foreign ATMs with no further fees. That combination would be the better (and simpler) option to getting value-for-money from your products

Rafter

But egg money still charges a loading fee on foreign currency of 2.65%

You should be able to avoid the interest on the Nationwide card by 'loading' it, but you won't avoid the withdrawl fee of £1.50. If you have the time, the best option is to open a nationwide current account too - their debit card is then free to use in many cash machines overseas.

Otherwise just try to make the minimum number of cash withdrawls to minimise the fees paid.

Have a great trip.

R.

King_Of_Fools

I believe Nationwide will not let you put your credit card into a positive balance.

sicker

grumbler wrote:

I don't know about interest, but don't forget about 1.5% (2% from 4/5/06) cash advance fee that you pay anyway. It is worth opening a current account with Nationwide to draw cash abroad. No, it is not Isn't it simpler just to use a debit card for cash withdrawals?

Can't understand your reply grumbler. What can be simpler than sticking you card in an ATM and withdrawing £xxx free of fees. Did you not mean 'it's just as simple'

John

grumbler

sicker wrote:

Can't understand your reply grumbler. What can be simpler than sticking you card in an ATM and withdrawing £xxx free of fees. Did you not mean 'it's just as simple'

No. To use Egg Money card the OP must:

• get this card
• preload it (move money from a current account that comes with the debit card).

Isn't it simpler just to use the debit card and avoid two above steps? Egg charge about the same currency conversion fee as majority of other credit and debit cards. What is the advantage of using Egg Money card to draw cash abroad as compared to a debit card?

falloutphil

Thanks muchly for all the help and information!

I was umming and arring about this last night, and I've decided to open the NatWide current account. I'm off to Tahiti and I cannot even take advantage of the good exachange rates at M&S or travelex due their obscure currency (XPF). So I figured I'd have to change money twice (GDP->USD->XPF), and it was worth the hassle of opening a new current account.

My main reason for not wanting to do this is I already have 2 current accounts (I had three until recently), and have no intention of sticking my salary in there so I thought they may be a bit reluctant to open an account I'd only credit when going abroad? I'll have to wait and see. For some reason having more accounts than I really need bothers me - that's silly I know, but it's more to keep track of and more opportunity for things to go wrong.

I'm off on hols in 4 weeks, is this typically enough time to get everything sorted out with NatWide in ppl's exerience - given I applied online today?

Thanks again,

Phil.

sicker

I can see niether advantage nor disadvantage. If my egg card is in positive balance I get 4% interest. I have to do a lot of fiddling to keep my A&L debit card balance at £2500 to get 5% for so many months. I just prefer Egg to any MBNA affiliates (hope I've spelt that correctly). I assume you too have your favourites and until egg are worse than the others I shall stand by them.

John