Cash advance on a credit card

DFWANNABE_3

Hi all,

Just need some help please, I had to use my credit card to withdraw cash - it was an emergency and I didn't have a choice. My old debit card was subject to fraud, replacement has not arrived, I got stuck in the snow over the weekend and either had to take a taxi or stay at a hotel. The taxi driver would not take me unless I paid an advance in cash so I didn't have a choice but to use my CC.

As soon as I got home, I transferred money to the credit card to cover the previous months bill, spends made during this statement cycle and the cash withdrawal plus an extra bit to cover any cash withdrawal charge.

Questions are: 1. Do I get charged the horrendous interest charges in addition to the cash handling fee? and 2. Can I use the credit card this month or will this result in the payment I made being allocated against new spend thus incur interest on the cash withdrawal?

Thanks,

DFW

INT1

You will need to make 2 consecutive full balance payments to clear all Cash, Interest and fees interest.

However I did hear they were changing the allocation relating to the interest hierachy.

lisyloo

1. Your interest should be minimal if you paid off straight away.

2. If you have another card or payment method you would use, then I would do so, or research in detail.

You will need to make 2 consecutive full balance payments to clear all Cash, Interest and fees interest.

If the first payment (before the statement comes out) is enough to cover the interest then there should be no residual interest, should there?
I always pay too much, and then buy a sandwich to clear it, but it depends on whether enough has been paid to cover the fee plus interest.

Residual interest should only occur if there was an outstanding balance when the statement was produced.

DFWANNABE_3

Thanks for the replies.

I always clear my balances in full.

I don't have another card that I can use, particularly as my debit card probably will not arrive before the new year.

What do you mean about research in detail? What kind of research is this?

Thanks

lisyloo

I don't have another card that I can use

Do you have a chequebook?
or you could go to the bank and withdraw cash from your bank account?
What would you do if your credit card was lost, went in the washing machine, or the magnetic stip failed?

What do you mean about research in detail?

Find out the order of allocation that your particular card lender uses.
You can do this either by reading the information you've been sent (including update leaflets), checking their website or calling them.

If you name the lender someone on here MAY know (but then their info might be out of date or wrong). Quickest way would be to call your lender and ask them the questions.

The answer to 2 might also depend on whether the transaction is posted before or after your payment so you need to ask both questions (it may take 3 or 4 days for your payment to clear).

sharpy2010

If I was you, I'd withdraw a hundred quid, use it till the new year, and pay it off when your debit card arrives. For the privilege you'll probably be charged about £3 cash advance fee and a fiver or so interest. Not going to break the bank is it? Or are you that determined that the bank must offer you a financial product completely free (i.e. you will pay NO interest or fees) that you wont use the card again to get money?

lisyloo

To be fair, I don't think the OP is worried about paying reasonable fees.
They are concerned about them escalating which can happen in some circumstances (usually if people fail to make payments on time and charges are added).

ryantcb

just to add that your account will continue to incur interest during the 3 working days it takes for any payment to reach your account. So you need to allow for that.