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Large balance in credit,why charge?
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penelopea
Posts: 10 Forumite
in Credit cards
OK,I'm not boasting,but I suddenly have a huge credit on my visa account (the repayment for a holiday that went bankrupt).It occured to me that I ought to be able to withdraw cash from atms at home or abroad without much, if any charge ,because ,afterall, I'm using my own money. No, says the telephone advisor at Halifax VISA ,because we are still giving you credit and would make the usual charges. ARE they? CAN they? IS she misinformed? Does anyone have any information on this ? Cant find any small print .
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With HBOS cards even if you are in credit, they will still charge you the cash advance fee of 3%.
From the T&C's:Snip.....
GENERAL CREDIT CARD CONDITIONS
5. Charges
5.1 We make a handling charge of 3.0% (at least £3) for all cash advances, and 3% (at least £3) for balance transfers and cheques. We may also limit the amount of your overall balance that can be made up of cash advances to a percentage of your overall credit limit. If we apply this cash limit we will tell you what that limit is and we will tell you if it changes at any time
Now so long as you factor this into the amount that you withdraw, then you will not be charged interest on it so long as you don't end up owing them money.
Example: if you are £1000 in credit, then you can only withdraw £970 as the 3% fee will (more or less) take you up to £1000 thus avoiding interest charges.Regards, Robin.2011 MFW # 34
Mortgage starting balance at Sept 09 - £127,224 on 30 year term. Currently balance approx £116,945 (Updated Jan '12)
Estimated MFD - [STRIKE]Sept 2039[/STRIKE], April 2031 (in progress!)0 -
If you phone them and explain that the amount is a refund (i.e. you are not trying to play a balance transfer offer to your advantage) they will usually send you a cheque or return it to your bank account for no charge.0
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Yeah they should be refunding it to you lump sum wise at no cost at least that was the case with virgin/ capital one in the past in my experience.0
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Has anyone overpaid on their credit card to enable them to withdraw cash abroad? It seems to me the handling charge is the same as on a debit card etc or commission on travellers cheques. If I overpay on my credit card (will they let me do this though?), then I should be able to withdraw abroad?
Anyone tried this?
:j0 -
You can withdraw cash whether at home or abroad, in credit or not, BUT you would be advised not to due to extortionate interest charges being levied from day 1 as well as a charge for making the withdrawl. DO NOT even think of doing it unless you have money to burn !0
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Has anyone overpaid on their credit card to enable them to withdraw cash abroad?
I have been told NOT to do this.
Nationwide (for one) do not insure credit balances, so if your card is used fradulently you will lose your money.
I suggest you ring your lender and ask before doing this but in my Ts&Cs it says they insure THEIR money (debit belance) but they do not insure YOUR money (credit balance).
I would advise against putting credit cards in credit.
If it's a refund get a cheque paid to your.
For going abroad get a Nationwide debit card if you want to spend your own money, then there is no interest and no commission from ATMs.0 -
You can withdraw cash whether at home or abroad, in credit or not...
http://forums.moneysavingexpert.com/showthread.html?t=5288830 -
I draw cash free of charge from my in credit Egg Money card and do so frequently. Don't know about abroad 'tho.
John0 -
YorkshireBoy wrote: »
Yes, I remember reading that, but would put that down as an exceptional case due the amount transferred and the flagging up of possibly a suspicious transaction due AML regulations.
I see the OP has now ammended the original post to fully explain what she was trying to do/has done. Just ask for the money back via transfer to your bank account or by cheque. As it's a huge amount you are losing money by leaving sat in a credit card account ! Yes, you have been informed correctly. As I said before they are fully entitled to make a charge for each withdrawl you make.0 -
You should not pay your account into credit
Its a no no and by doing so you could end up having trouble getting the funds back
credit cards are just that and shouldnt be used as bank accounts0
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