Credit Card Interest

Laurie1_1

If, before going abroad, you credit your Credit Card account with say £1000, when you draw money from an ATM with your credit card, can the bank charge you interest on the money drawn?
After all you are not borrowing as your account is in credit.

jojo1978_3

No they wont charge you interest if you remain in credit, but you will be charged the cash handling fee, and they will still only allow you to withdraw up to your "real" limit.
Its not an advisable thing to do as if your card is lost or stolen they will only cover you for the credit limit, you will be liable for any amount you have overpaid your card by.

exel1966

Pre-loading your card is not a sensible thing to do as they will charge you a handling fee each time you withdraw funds and that could be as much as £25. DON'T do it !!

CLAPTON

not all cards allow you to put your CC 1000 in credit so you may want to check before doing this.
why not use a debit cards instead.

and remember that nationwide dont charge a fee for foreign withdrawals unlike most other credit or debit cards

Laurie1_1

Thanks for the input folks.
The reason for the question is that on my last 2 trips to Indonesia, I did load my credit card account but not by as much as £1000.
Upon studying the account details I find that each credit card ATM transaction was charged a £2.00 cash handling charge. I got a better rate of exchange with the credit card transaction, and there were no further charges.
The charge for a debit card ATM transaction was £1.75. The better rate of exchange on the Credit Card transaction, more than compensated for the extra 25p. There were no other charges on the credit card account. Hence the question about interest charges.
The point about cover for lost/stolen card and credit on the account it noted.
I have had no problem pre-loading my credit account, as I do it by direct credit transfer on my HSBC internet banking. I assume that the same applies to other banks. I don't see how banks would block a payment to a credit card account anyway, so how could they disallow it.