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Cash advance.

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meher
meher Posts: 15,910 Forumite
10,000 Posts Combo Breaker
If that's the right word for drawing money from the ATMs using a credit card, I am strugglign to understand the charges or if it is free of charge, apparently would clock up interest until it is paid back. Have I got this right?

I have a satander zero and am trying to make sense of its use abroad.
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  • SCO
    SCO Posts: 729 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    edited 15 October 2011 at 9:46AM
    Withdrawing cash on a credit card is a no.

    Not sure of the Santander Zero rules but credit cards charge higher rates.

    If you withdraw the cash on a credit card the interest is charged from the moment it is withdrawn till paid off and it is typically a very high rate 30% APR plus.
  • jen245
    jen245 Posts: 1,606 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker
    edited 15 October 2011 at 1:35PM
    You will only be charged interest until it is paid off in full, so if you withdraw cash on it, just do a fp from your bank account to pay it off, which will minimise the interest. I used to have Zero, its a good card for using abroad, but Halifax Clarity is better as the interest rate is lower.

    SCO, while normally cash withdrawals on a cc, are generally not recommended, cards like Zero and Clarity are meant for these types of transactions, as they have no foreign loading or cash withdrawal fees
    Debt free and staying that way! :beer:
  • meher
    meher Posts: 15,910 Forumite
    10,000 Posts Combo Breaker
    Please excuse me ignorance, what's fp? I always pay it in total by direct debit.
  • jen245
    jen245 Posts: 1,606 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker
    meher wrote: »
    Please excuse me ignorance, what's fp? I always pay it in total by direct debit.

    Sorry, faster payment. When I have withdrawn cash on my card in the past, I've always made a payment as soon as it hits the account from my bank account via online banking, to minimise the interest.
    Debt free and staying that way! :beer:
  • fozmcfc
    fozmcfc Posts: 3,098 Forumite
    Part of the Furniture Combo Breaker PPI Party Pooper Debt-free and Proud!
    I was out the other month and needed cash and didn't have my debit card, so I bit the bullet and did what I have always thought I would never do again, get cash out on my credit card.

    I withdrew £200 on my Natwest card, I paid it as soon as it hit my account via fast pay to minimise the cost, it cost me a £6 cash handling fee.

    Not the end of the world, annoyed me, but £6 is still quite a bit out of £200 and if I hadn't paid it back immediately it would have been extremely costly.
  • TakeThis
    TakeThis Posts: 2,909 Forumite
    meher wrote: »
    If that's the right word for drawing money from the ATMs using a credit card, I am strugglign to understand the charges or if it is free of charge, apparently would clock up interest until it is paid back. Have I got this right?

    I have a satander zero and am trying to make sense of its use abroad.

    jen245 is correct, as she alludes, don't bother waiting until the statement is produced. You can estimate the amount of the withdrawal in Pounds and pay it in straight away. Then any interest, if any, will be in pennies.
  • meher
    meher Posts: 15,910 Forumite
    10,000 Posts Combo Breaker
    jen245 wrote: »
    Sorry, faster payment. When I have withdrawn cash on my card in the past, I've always made a payment as soon as it hits the account from my bank account via online banking, to minimise the interest.
    Ah, yes faster payment. That shouldn't be a problem at all because I always have internet access one kind or the other. But would that mean that if I withdraw money and pay in straightaway, I wouldn't be charged interest?

    I've never taken money out of my credit card. It is just that when I travelled abroad couple of weeks ago, I had to run from one end of the city to another end looking for an exchange bureau. It wasn't my idea of holidaying if I'm honest. I'll travelling again in the next couple of days and the last thing I want to do is to run about looking for an exchange bureau in a new place. I've decided to use my credit card at the ATM instead. I just wanted a rough idea of what the charges would be like. I was under the impression that santander zero wouldn't charge considering they offer fee free purchases? I'll need to call them to set my card to use abroad, will double check with them for the finer details. Thanks for the tip on faster payment repayment to save on charges.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    fozmcfc wrote: »
    I was out the other month and needed cash and didn't have my debit card, so I bit the bullet and did what I have always thought I would never do again, get cash out on my credit card.

    I withdrew £200 on my Natwest card, I paid it as soon as it hit my account via fast pay to minimise the cost, it cost me a £6 cash handling fee.

    Not the end of the world, annoyed me, but £6 is still quite a bit out of £200 and if I hadn't paid it back immediately it would have been extremely costly.


    true for most cards but the santander card has no fee so the OP wouldn't pay the £6 fee
    and if his APR was say 25% then the interest for say one month would be less than £4


    and of course the santander card has no foreign excahnge fee so all in all it's probably one of the cheaperst ways of drawing cash abroad
  • jen245
    jen245 Posts: 1,606 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker
    meher wrote: »
    Ah, yes faster payment. That shouldn't be a problem at all because I always have internet access one kind or the other. But would that mean that if I withdraw money and pay in straightaway, I wouldn't be charged interest?

    I've never taken money out of my credit card. It is just that when I travelled abroad couple of weeks ago, I had to run from one end of the city to another end looking for an exchange bureau. It wasn't my idea of holidaying if I'm honest. I'll travelling again in the next couple of days and the last thing I want to do is to run about looking for an exchange bureau in a new place. I've decided to use my credit card at the ATM instead. I just wanted a rough idea of what the charges would be like. I was under the impression that santander zero wouldn't charge considering they offer fee free purchases? I'll need to call them to set my card to use abroad, will double check with them for the finer details. Thanks for the tip on faster payment repayment to save on charges.

    You won't be charged anything for purchases, and the interest on the cash withdrawals will be pennies provided you pay it off straight away. And definitely let Santander know you are going abroad, as they may block your card, like they did with me, as I was silly and forgot to tell them!
    Debt free and staying that way! :beer:
  • meher
    meher Posts: 15,910 Forumite
    10,000 Posts Combo Breaker
    I know what you mean jen, santander blocked all my cards, even my debit card last year which is why I don't use my debit card abroad anymore because I really cannot afford my main account to be blocked. Then they call you on your roaming phone and hold you for a good twenty minutes verifying transactions etc. I've been through all that with barclays before and recently with santander. So I do a check-in with them ceremoniously before travelling abroad.
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