getting cash from my credit card

Pythagorous

I have a 5k limit on my credit card and would like to get access to this cash without simply having to spend using the card. Can I simply do a cash withdrawal at a bank machine (I've never actually used the card for anything other than a few purchases at the shop)? If so what rate gets charged on the cash withdrawal - is it just the standard APR that I would usually get charged on my card or is there also an additional charge for withdrawing the cash?

thanks

[Deleted User]

It should say on your statements what the APR and cash advance fee is for cash withdrawals. Most cards I know charge interest from the day you take the money out the cash machine, no 51 day interest free period like on purchases.

Pythagorous

Thanks Lee. So do all credit cards offer the facility to wsimply withdraw the cash at a machine?

[Deleted User]

Pythagorous wrote: »

Thanks Lee. So do all credit cards offer the facility to wsimply withdraw the cash at a machine?

Far as I know, yes. If the ATM displays the Visa or Mastercard logo.

dreams_R_free

ATMs have a limit of how much you can withdraw at a time, usually about £200 a day,so it isn't very good if you need access to a lot of cash quickly.

Some credit cards have the facility of credit card 'cheques' which can be used to pay people who can't/won't accept credit card payments. It is possible to write one of these to yourself and pay it into your current account although it is an expensive means of getting money as interest charges etc are high. I don't know if all credit card companies issue them but I'm forever getting them sent to me unsolicited by my card issuers MBNA and LloydsTSB.

inmypocketnottheirs

Also, if you withdraw cash not only do you pay 1) an advance fee and 2) a higher rate of interest, but any repayments you make will be applied to the cash advance last. This means if you have a balance on the card before taking the advance, and if you make subsequent purchases after taking the advance, the advance gets paid off last. Therefore, it is a very expensive way of borrowing.

CLAPTON

not all cards allow cash advances and also some impose a limit on the total cash advance below the nominal credit limit, so read your monthly statement.

most cards will charge a 2.5% fee so drawing 5000 would cost you about £125 plus typical apr of 25% from the day you withdraw the money and until its paid off.
Usually the monthly bill has these rates and charges printed on it.

as already said you are usually restricted to 200 day from ATMs although sometime you can draw more if you visit a bank in person.

Although banks make a lot of money out of cash advances, do be careful because increasing they also see people who are always making cash advances as people who are in desperate fiancial circumstances and so may review your account accordingly.

exel1966

NEVER EVER withdraw cash from a credit card. The interest charges could cripple you financially.

There are far cheaper ways to get £5K , such as loans etc or if you want to purchase something for £5K get another card with a 9-12 month 0% introductory offer and then transfer the debt after that period.

harriko

ok. what if your have more money on your credit i.e. £200 credit limit plus £100 on top. Theyre in credit to you with £100. Will you still get charges if you do a cash withdraw or write a cheque to yourself of £100?

King_Of_Fools

harriko wrote: »

ok. what if your have more money on your credit i.e. £200 credit limit plus £100 on top. Theyre in credit to you with £100. Will you still get charges if you do a cash withdraw or write a cheque to yourself of £100?

Yes (apart from Egg Money).

Bokkens

Pythagorous wrote: »

I have a 5k limit on my credit card and would like to get access to this cash without simply having to spend using the card. Can I simply do a cash withdrawal at a bank machine (I've never actually used the card for anything other than a few purchases at the shop)? If so what rate gets charged on the cash withdrawal - is it just the standard APR that I would usually get charged on my card or is there also an additional charge for withdrawing the cash?

thanks

Just forget about withdrawing cash from a ATM on a credit card it is by far the most expensive way of getting funds.
Have a look at Martin's articles on SBT (super balance transfers) between credit cards and the use of a MULE card like A&L,MNBA,MINT,etc to move your money off of a credit card and into your bank account,there are some fees involved but they are a lot cheaper than the interest charged on a cash withdrwal.