lloyds tsb duo avios card interest?

fionasuewright

Okay I have never had a credit card before and I only use this one sparingly on a normal basis and make sure it's repaid by the end of the month.

BUT I am lacking In the maths department and looking at possibly withdrawing 2000 in cash.
That's the full balance. It's the lloyds tsb duo avios credit card. It says on my letter 27.95% p.a for cash withdrawals.

I have no idea what this means?

Can anyone please please help explain to me how much I would be paying monthly in interest on £2000 withdrawn.

(It's not a frivolous payment it's for a house deposit.)

YorkshireBoy

"p.a." stands for 'per annum'. Does that help? Or are you still struggling even after dividing by 12? (13 would be more accurate, but I won't post the actual formula if you struggle with basic maths)


When the mortgage lender sees the cash advance (and the debt itself...and the month it was taken) on your credit file they'll be spooked!


Many credit card providers limit the cash balance to 50% of the credit limit, so that would restrict you to £1K anyway.


And when you talk of "the full balance", I assume you mean the full credit limit? If so, see my 3rd point above.

fionasuewright

Ahh.. yeah my maths is terrible I don't know how to divide percentages at all. Yes the full balance is my limit of 2000 so I guess 1000 is all I could get..

In that case how would the interest work on £1k sorry if it's a nieve question. When I was at school they never really covered real life maths. Mostly algebra and triangle measurements which doesn't really help in real life..

I appreciate your help

YorkshireBoy

per cent is per hundred (from the French, but you probably didn't do that either?).

27.95 / 12 is 2.33 (so that's £2.33 per £100)

There are 10 hundreds in a thousand.

So your interest (for the first month) is roughly...

£2.33 x 10 = £23.30


EDIT: And don't forget the circa £30 cash advance fee. That's based on 3% (3 per hundred, 10 hundreds in a thousand, 10 x 3 = £30).

Fruit_and_Nut_Case

VERY approximately £20 per month interest.

Aside: Don't mortgage providers frown on people who borrow for the deposit?

YorkshireBoy

Fruit_and_Nut_Case wrote: »

Aside: Don't mortgage providers frown on people who borrow for the deposit?

I believe you're asked for the source of the funds these days, and maybe have to submit documents to prove it?


It's a shame though when you've saved up all that money for a deposit, and still end up £1-2K short.

PeacefulWaters

You are asking for big problems with your mortgage lender here.

If they become aware of you borrowing to provide deposit they could withdraw their mortgage offer.

jonesMUFCforever

If your limit is £2k then you may only be able to get £1k as a cash withdrawal.
Check with them before proceeding.

thebritishbloke

Don't do it, they likely won't accept it as part of the deposit.

Just save up for a few more months to get the £1-2k.

SuperHan

We weren't asked where our deposit was from, but that was just before the new regs came in.

They will certainly frown upon you having a hefty cash advance outstanding on a credit card though.

Caz3121

From OPs other thread this appears to be a rental deposit and not for buying a property