Credit Card Advance Limit

Senor_G

Hi there, I wondered if any of you lovely people could help me with something?

I've just been accepted for my first credit card (with Tesco) and when reading through my agreement it first states my credit limit, then it says that my advance limit is 30% of the credit limit.

Does this mean that at any one time I must owe no more than 30% of my credit limit to avoid incurring charges for exceeding the advance limit or does the advance limit strictly apply to cash withdrawn from a cashpoint?

If anyone could explain this for me it would greatly appreciated!

savagej

It is for any transaction they treat as a cash advances, such as ATM/bank withdrawals, buying foreign currency and often gambing transactions too.

Senor_G

Ahh ok thanks, so a large purchase that would take me over 30% of my maximum credit limit would not count as an advance?

savagej

You can't go over the credit limit by 30%, you can only go up to your credit limit without getting a decline or being charged. The 30% is 30% of your credit limit so if it is £1000, you can use £300 for cash advances and the other £700 for purchases, or any combination of the above as long as you dont exceed your credit limit or 30% of your entire limit as a cash advance.

Hope this makes sense.

Comstock

Purchases should be fine. It's cash withdrawls they are on about.

Until quite recently I had the same restriction on my Barclaycard, although it was 50% rather than 30%

I'm not sure why it is, I've a feeling someone here will know....

Senor_G

savagej wrote: »

You can't go over the credit limit by 30%, you can only go up to your credit limit without getting a decline or being charged.

Oops sorry, I meant to say 30% over the advance limit not the credit limit.

Cheers guys for the quick responses! It's cleared it up for me now :j