taking out money on a credit card

winkle1

dont all shout at me, i'm not going to do this!!

i'm just wondering why its so bad?

Numpty_2

Because the interest is astronomical ormally and there's a fee for taking it out.

tomstickland

Well, Halifax kindly sent me a book of "Credit Card Cheques" yesterday and a jaunty letter about how useful these might be if I ever needed any money.

Yes, they only charge 29% APR on them!

If you use a CC at a cashpoint you will normally be charged a £5 "cash advance fee".


I'm all for using CCs to my advantage and also believe in personal responsibility on borrowing. However, the letter shocked me a bit, because it's aimed at exploiting the desperate or stupid.

winkle1

aha! thanks guys!

yung

I have got 3 credit card but I use them only instead of cash so I can get the point on them, but I will never withdraw cash from them, and every time I get those cheque I just shred them.

Phoenix79_2

Don't do it! If you need money desperately then you can do a Super BT from certain cards (MBNA/Egg) and they can transfer some of your credit limit into your account. You will just pay back the usual borrowing rate on the card which will be less than the rate for withdrawing cash. The Super BT will have a fee chargeable on it (usually 2-3%)

james32_uk

Plus the killer is that you pay money off your card at the lowest interest first. ie if you take out £100 on a CCard and never go below a balance of £500 then you're paying the higher 'cash advance' interest on the £100 forever!