stupid credit card question

poodlehorse

well it probably is obvious to everyone else but not to me.

If you are in credit in your credit card and you take money out of an ATM with it and you are still in credit does that mean you aren't charged any interest? I know that would be the case for normal CC transactions and am assuming it would be for cash withdrawals but they are a special case for interest aren't they? No interest free timescale. Just want to double check as my DH is in a country where his cashcard won't work in the ATMs but his CC will. HAve overpaid what he said he took out and a little bit more just in case but don't want to have a scary bill at the end of the month:eek:

dzug1

Probably no interest - at least until he spends enough to take the card into debt. Not 100% sure though

Almost certainly a cash advance fee though.

jonesMUFCforever

100% a cash advance fee and if the balance goes into a minus figure with the capital and fee even by a penny expect to pay a lot of intrerest.

esuhl

Most cards won't charge interest if you pay them off on time (although I believe a very small number charge interst by the day - from the time you use the card till the day you pay the bill). The interest rate (as far as I know) would be exactly the same whether it's a foreign debt or a Sterling one.

However, all the credit cards I've had would charge a cash advance fee for using an ATM. If you're not withdrawing in the currency you pay the card in, you will probably have an unfavourable exchange rate, plus you will pay a conversion fee.

Usually (with the cards I've had, at least), it's far cheaper to pay by credit card than to withdraw cash and use that. With the debit cards I've had, the opposite has been true.

jonesMUFCforever

esuhl wrote: »

Most cards won't charge interest if you pay them off on time (although I believe a very small number charge interst by the day - from the time you use the card till the day you pay the bill). The interest rate (as far as I know) would be exactly the same whether it's a foreign debt or a Sterling one.

However, all the credit cards I've had would charge a cash advance fee for using an ATM. If you're not withdrawing in the currency you pay the card in, you will probably have an unfavourable exchange rate, plus you will pay a conversion fee.

Usually (with the cards I've had, at least), it's far cheaper to pay by credit card than to withdraw cash and use that. With the debit cards I've had, the opposite has been true.

They will charge interest on cash from day 1 and the account would have to be cleared for 2 consecutive months for the trailing interest to stop.

richardginger

If your account is in credit, there will be no interest charge to withdraw from a cash machine provided the amount you draw does not take the card to a debit balance. There may be an ATM fee depending on the provider of the service.

exel1966

esuhl wrote: »

Most cards won't charge interest if you pay them off on time (although I believe a very small number charge interst by the day - from the time you use the card till the day you pay the bill). The interest rate (as far as I know) would be exactly the same whether it's a foreign debt or a Sterling one.

There is AFAIK only one British credit card that WILL NOT charge interest on cash withdrawls and that is the SAGA card, but the proviso is that the amount withdrawn must be fully repaid by the statement due date.
They will charge a withdrawl fee as per most credit cards.

exel1966

poodlehorse wrote: »

If you are in credit in your credit card and you take money out of an ATM with it and you are still in credit does that mean you aren't charged any interest? I know that would be the case for normal CC transactions and am assuming it would be for cash withdrawals but they are a special case for interest aren't they? No interest free timescale. Just want to double check as my DH is in a country where his cashcard won't work in the ATMs but his CC will. HAve overpaid what he said he took out and a little bit more just in case but don't want to have a scary bill at the end of the month:eek:

You need to be more specific. Which credit card are you referring to ?

Generally, you wouldn't be charged interest if the account still remained in credit after the withdrawl, however you'll almost certainley have to pay an overseas ATM fee of 2-3% (nothing to do with the card itself) AND a card fee to your card supplier, usually around £3.00.

PS. loading a credit card into credit is not a sensible idea as the card could easily be blocked at anytime by your supplier, some will even charge you for going into credit and you won't have CCA protection if fully using your own funds.