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'loading' cedit card to avoid cah withdrawal interest?

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Someone has suggested that if you load your card, i.e overpay so you are in credit, the company will not charge you interest on money withdrawn from cash machine. anybody know if this is true.:rotfl:

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  • izools
    izools Posts: 7,513 Forumite
    1,000 Posts Combo Breaker
    Depends on the card issuer. Most (if not all) now hold it against the T&C to place the account in credit - doing so is likely to result in the payment being returned to it's source and / or the account being blocked / closed.
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  • rhcp
    rhcp Posts: 2,047 Forumite
    Part of the Furniture 1,000 Posts
    If you have money to put on your credit card, why not just use that and not incur charges!!
  • ManAtHome
    ManAtHome Posts: 8,512 Forumite
    Part of the Furniture Combo Breaker
    rhcp wrote: »
    If you have money to put on your credit card, why not just use that and not incur charges!!
    This is usually asked about credit cards you can use abroad - eg Halifax Clarity has no currency charges, but has a 1% a month (approx) cash advance charge. If you could pre-load (you can't with this one), you'd be able to draw from overseas ATMs without charge.
  • suea wrote: »
    Someone has suggested that if you load your card, i.e overpay so you are in credit, the company will not charge you interest on money withdrawn from cash machine. anybody know if this is true.:rotfl:
    It varies with company terms. Which credit card company you are using. Don't be hesitate to contact with their customer care section. Only they can ensure this. :)
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    suea wrote: »
    Someone has suggested that if you load your card, i.e overpay so you are in credit, the company will not charge you interest on money withdrawn from cash machine. anybody know if this is true.:rotfl:

    Here's a crazy idea - ring your card provider and ask.
  • chattychappy
    chattychappy Posts: 7,302 Forumite
    izools wrote: »
    Depends on the card issuer. Most (if not all) now hold it against the T&C to place the account in credit - doing so is likely to result in the payment being returned to it's source and / or the account being blocked / closed.

    This is a good answer. Bear in mind that where interest is charged, it's calculated daily. So if you make a payment within a few days of making the withdrawal, the interest will be minimal.

    If you did make an advanced payment and it was accepted, then whilst you'd escape interest you wouldn't escape any other handling fees. Of course if there was already a balance, the payment would be applied to that first and not the forthcoming cash withdrawal.
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