MBNA Cash Advance

enigma368

Hi,

I recently accidently used my MBNA visa credit card to make an ATM withdrawal. Don't ask me how it's a long story.

Anyway I have received a £5 charge for withdrawing this £30 which is annoying but my own fault. My question is on interest, I have repaid £30 onto my account straight away as I know interest applies to cash advances immediately, is this enough to stop accruing interest or does a cash advance immediately nullify my interest free period on purchases? I am wondering whether I need to pay off the full balance now to avoid any interest on purchase.

Any help appreciated, thanks.

thenudeone

The interest will stop as soon as the payment hits the account as long as cash is charged at a higher rate than purchases (it usually is but you need to check your rates)

[Deleted User]

You need to check whether payments are allocated against statemented balances before unstatemented ones. You may find that you need to pay it off again if it has not yet appeared on the statement.

enigma368

as long as cash is charged at a higher rate than purchases (it usually is but you need to check your rates)

It is charged at a higher rate yes. So the cash advance does not affect the interest free period on purchases, it only causes interest to accrue on the advance(until it is paid off)?

Am I correct in thinking that card companies pay off cash advances first now, before purchases as of about a year ago?

chattychappy

enigma368 wrote: »

Am I correct in thinking that card companies pay off cash advances first now, before purchases as of about a year ago?

No. It's based on highest interest balance first. And this is subject to the remark by zx81 above.

So you need to check two things:
1) is your cash advance balance higher than your purchase rate
2) do they apply interest to statemented transactions first.

Frankly the interest on £30 will be minimal. Eg a month at 26% APR would be around 60p. So don't lose sleep over it.