Credit Cards Cashpoint

rogue_elements

Hi all just a quick question

If you use a cash point to remove money off of a credit card, but you pay it off in full by the time you get your bill come through, you still don't get any interest, right?

I'm confused because people say NEVER use cashpoint for credit cards, or to get cashback or anything like that at all, but what if you just need a bit of cash fast quickly? And you would pay it off? Let me know ok.

Also, if you use a credit card put your money into pay pal, then you transfer the money to your bank account, is that the same thing? Does that count as money rate or purchase rate? (sposing you couldn't pay it off that month)

CannyJock

rogue_elements wrote: »

If you use a cash point to remove money off of a credit card, but you pay it off in full by the time you get your bill come through, you still don't get any interest, right?

Wrong.....

You can't get cashback on a credit card. There's no loophole for quick free cash on a credit card. They've all been tried. If you just need a bit of cash fast quickly speak to your bank about an overdraft.

joedenise

You'll always be charged interest on any cash from an ATM using a credit card - and at a much higher rate than purchases. Just not worth it for a bit of quick cash. Much better to do as CannyJock says and arrange an overdraft to use.

JA1000

You can't do what OP suggests but there are arguments for using CC cash;

Having been stuck abroad with a lost debit card, it is not easy to get a replacement. In this instance it was instantly quicker for me to obtain cash by using a credit card. I accepted there was a fee but certain situations require certain measures and this was acceptible for a small fee. All paid back in full.

I can also give an example of free cash back on a credit card. A normal night club I have been to offers cash back on credit card. They thought they were laughing when a friend and myself both withdrew a £250 free, there expectation was we were going to spend it. Nope used it to cover the spending money on the rest of our holiday only paying for it interest free up to 56 days later.

I also bought part of a house using credit card cash, at the last minute I had to up an offer by £5k rather than go through the bank to change etc I knew it was close on earnings, I quickly withdrew £5k from the cashpoint over a week paid the difference and moved in, subsequently moved the balances to 0% deals and paid it off in full within the period. I have seen someone on here having done it for the whole house.

Again everyone jumps up and down about taking cash out on credit card but for emergency use and managed very carefully - a good idea.

exel1966

rogue_elements wrote: »

Hi all just a quick question

If you use a cash point to remove money off of a credit card, but you pay it off in full by the time you get your bill come through, you still don't get any interest, right?

Yes, that's right.........................if you have a SAGA card !

davetrousers

And you'll get charged a cash withdrawal fee for withdrawing cash from a credit card.

jay87

The only times i get free credit card cashback is if the merchant are willing to break their agreement and run it through as a purchase, which a couple round here are

JA1000

Why would they do that if they get charged a fee?

ElkyElky

JA1000 wrote: »

Why would they do that if they get charged a fee?

The actual company gets charged, not the employee. What does it matter to an employee if the company bills are a couple pence more?

rogue_elements

i'mtalking about if you pay it off in full when you get the bill so there is no chance to get chared interest... i know that the iNTERESST is much higher for money purchase but if you pay it off anyway in that first month then what would you get charged?

lisyloo

i'mtalking about if you pay it off in full when you get the bill so there is no chance to get chared interest

There are NO interest free days for cash, like there are for purchases.
You will get charged for each day that you borrow the money.
So let's suppose you borrow it for 20 days and you have initerest rate of 20%

so 20% * 20/365 = 1.1 %

Of course there may be fees as well, but I'm answering the question about interest.

What you get charged depends on the interest rate and number of days but the formula is like this

Annual interest * number of days/365

If you needed money short term in an emergency abroad then it's useful, but for long term borrowing it's expensive.