Getting the balance of a credit card in cash

rictus123

Anyway to do this? RBS platinum, £800 limit. Withdrawing from a cashpoint wont work and high intrest fees is it not? So could i just use the online credit card feature to transfer £800 into my bank account?

CannyJock

Nope, not with that card.

£800 limit is tiny. Suggests you're new to credit cards? Forget about using them to get cash.

rictus123

Yep. No way at all i can use it? Im 18 so first card etc.

CannyJock

rictus123 wrote: »

Yep. No way at all i can use it? Im 18 so first card etc.

Not for cash, no. You can use it to make purchases for things that you can afford to repay in full when you get your statement. It'll give you up to 56 days interest free credit, section 75 protection on some things and help build a positive credit history if used responsibly.

It's not a secret route to free cash, infact it's one of the most expensive forms of "borrowing" if you slip up with it

rictus123

I could use it for buying at a garage though right?

CLAPTON

for a normal CC you can use it for purchases or get cash from an ATM

If you use it for purchases, you can simply use it anywhere a CC is accepted to purchase items (that's almost everywhere now) so you could buy petrol at a garage
food at tesco's
clothes at M&S

however, make sure you pay the full amount when the bill arrives otherwise you will be hit by high rate of interest

best to set up a direct debit for the full amount so you don't forget to pay which will cost you charges and also damage your credit rating


you can draw cash from an ATM but you will be charged a fee and high rate of interesst.... complete madness.

rictus123

Take control of your credit card

Credit Card Online Services lets you do much more than you might expect. For example, you can:

• Make payments – pay a bill with your credit card or make a payment to any other UK bank account
• Ask for a credit limit increase – request a higher credit limit online
• Add another cardholder – why not share your credit card, perhaps with a family member?
• Manage your personal details – let us know if you change address or need a reminder of your PIN

So i cant make a payment to my own account?
Iv signed up and waiting on acivation code then il give it a try..

CannyJock

rictus123 wrote: »

So i cant make a payment to my own account?
Iv signed up and waiting on acivation code then il give it a try..

Great idea. Go for it.

Forget that bit earlier where I said "It's not a secret route to free cash" - you could be onto something new here. Keep us posted.

Incidentally, are you any good at working out interest charges and fees?

izools

rictus123 wrote: »

Take control of your credit card

Credit Card Online Services lets you do much more than you might expect. For example, you can:

• Make payments – pay a bill with your credit card or make a payment to any other UK bank account
• Ask for a credit limit increase – request a higher credit limit online
• Add another cardholder – why not share your credit card, perhaps with a family member?
• Manage your personal details – let us know if you change address or need a reminder of your PIN

So i cant make a payment to my own account?
Iv signed up and waiting on acivation code then il give it a try..

If this is your first or one of your first credit cards, you are thinking and planning to do one of the most obvious signs of someone who has no idea how to take responsibility for a credit facility and in all probability will end up defaulting / in serious !!!!!! not that long down the road.

Credit cards are not designed for borrowing cash

So you are now in a position to make a choice -

Borrow cash and get used to a dangerous way of handling credit very early on, which will leave you up the swanny in not long,

Or not borrow cash, and get used to a responsible way of handling credit very early on, which could very well leave you with an excellent credit rating and a trusted customer / friend re: financial advice, in years to come.

Keep the following points in mind:

1. Cash withdrawls are charged at a much higher APR. Not only this but the higher APR cash balance doesn't go down whilst you have a purchase balance outstanding. So if you borrow £300 cash and make a £500 purchase, 100% of your cash withdrawl is accruing interest at the higher rate until you stop using the card for purchases for as long as it takes to clear the purchase balance and continue to clear the cash balance whilst still not using the card.

2. Cash withdrawls are charged at a higher APR for two reasons: i) Lenders don't like credit card customers borrowing cash and ii) Borrowers who withdraw cash are on the whole a higher risk so need to pay a higher APR to offset that risk

3. Cash withdrawls are recorded on your credit file. Every time you make one a marker is placed on your file to say you have done so. Some creditors scoring techniques mark you down for this, so even if you manage to somehow pay off the balance and be responsible in all other areas of your financial life, you'll still find it harder to get good deals elsewhere and may be turned away when it matters most.

4. (And I feel most important), doing this will in no way help you to budget for what you need. It will not help you develop the mentality that you will need in your adult life, in regard to ensuring that if you need or want something, it has to be affordable, it should be a requirement and not a whym, and it should be something that you've worked for and not been lent. Failure to develop this mentality early on leads to disaster. I know this only too well. If you want to be Bankrupt to the tune of nearly £200,000 with a reposession order served on the house your partner and you bought together by the age of 21, and have to watch all of your prized posessions sold for the benefit of your creditors for a fifth of their value, then clearly none of this will seem important to you. It didn't to me when I was your age, and that is what happened to me.

You have the power to make the right or wrong deicsion, and being 18 now you are the only one who will have to bear the brunt, possibly for many many years to come, should it be the wrong one! Your bank won't be sympathetic. I hope for your sake your parents wouldn't be either. We certainly won't be.

CannyJock

izools wrote: »

1. Cash withdrawls are charged at a much higher APR.
2. Cash withdrawls are charged at a higher APR for two reasons
3. Cash withdrawls are recorded on your credit file.

But the nice people who put the website clearly stated it's not withdrawing cash, it's Taking control of your credit card and they've helpfully pointed out specifically that you can make a payment to any other UK bank account.

Surely such convenience can't be construed as anything other than a positive benefit to the consumer?!

Regardless of your factually accurate and 100% correct advice on the matter, I'm with rictus123 and think he should give it a try.

izools

CannyJock wrote: »

But the nice people who put the website clearly stated it's not withdrawing cash, it's Taking control of your credit card and they've helpfully pointed out specifically that you can make a payment to any other UK bank account.

Surely such convenience can't be construed as anything other than a positive benefit to the consumer?!

Regardless of your factually accurate and 100% correct advice on the matter, I'm with rictus123 and think he should give it a try.

You have a valid point Cranny, after all, why would the company marketing a product try to get people to do something that wasn't in their best interests?

I mean when was the last time you ever read about someone who was charged more interest than they were expecting or were in debt for years on end because of being coaxed in by advertising campaigns and slogans that prey on the weak and ignorant?

Certainly not the sort of thing any UK based creditor would get up to, atall! They're all so trustworthy I think I might even put my Barclaycard balance on a Vanquis card because they say they will be much nicer and more helpful if I ever have to call them :rotfl:

Speaking of which, when I was approved for my Vanquis card the nice lady said I should get a money transfer from them because I'd be able to have a really enjoyable time shopping around town and it would "help me budget better". Do you think I should give her a call back and take her up on the offer given it's available after all this time?

She did say it would help me budget better, after all. You're not suggesting she might've been joshing with me, are you?