Overseas cash

hawkez99

Hello,
I understand that if I use my credit card abraod to withdraw cash from an ATM abroad, I'll be charged interest on the amount immediately (note I have card with no fee for cash withdrawal).
My question is this: if I go back to my hotel after this withdrawral, log in to my bank, and pay the withdrawl amount off my credit card (i.e. before the statement date etc), will I be charged any interest at all?
Is this a reasonable way to avoid these fees?
Thanks!

lisyloo

if I go back to my hotel after this withdrawral, log in to my bank, and pay the withdrawl amount off my credit card (i.e. before the statement date etc), will I be charged any interest at all?

If depends on how long your payment takes to arrive.
If it's a faster payment you should pay no interest, if the comapnies concerned used BACS and it takes 3-4 days then you'll pay interest on the 3-4 days (still very small).

Is this a reasonable way to avoid these fees?

Depends what facilities you are using.
If it's a shared computer in the hotel lobby then I'd say it's risky and you should wait until you get back home. If you have 12.9% apr from clarity that's about 1% per month or 0.5% for 2 weeks, so very small.
If it's your own ipad, iphone, laptop on wifi then most people would think that's ok.


The other option is to chill and stop worrying whilst your on hols and pay 0.5% when you get back. Lilely to be about the cost of an ice cream, so depends how much you want to be paying bills whilst your on your hols.
I've never paid more than about £3.

chattychappy

lisyloo wrote: »

If depends on how long your payment takes to arrive.
If it's a faster payment you should pay no interest, if the comapnies concerned used BACS and it takes 3-4 days then you'll pay interest on the 3-4 days (still very small).

That might be the case but not necessarily. It depends on the card and whether the OP has another balance on the card (eg a BT or purchases).

Some cards apply payments to statemented transactions in preference to unstatemented transactions (even if the interest rate is higher on the unstatemented transaction).

Aside from that, if the purchase rate is the same as the cash rate, then a payment might be applied to purchases before cash.

Stupidly, some T+Cs are a little ambiguous as to how payments are applied. If uncertain, the safest way to minimise interest is to pay the entire balance just after you've made the cash withdrawal.

If you have two loading-free cards, then you can keep cash on one and use the other for purchases. That way you can still benefit from the longest possible interest free period on the purchases.

Else agree with the gist. I always pay off the cash promptly, but I'm not worried about leaving it a few days if I'm busy.