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cash advance and purchase interest

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A_T
A_T Posts: 975 Forumite
Part of the Furniture 500 Posts Name Dropper
Something I've been wondering about. Say I withdraw £50 from an ATM with my credit card. The same day I make a purchase with it also of £50. The next day I make a payment to my card of £60. My card has interest on ATM advances from day one and the usual interest-free period if you pay off your statement when it's due.



Does that £60 payment first pay off the cash advance so minimising interest I have to pay? Is it split between the ATM withdrawal and the purchase? How do CC companies work these things out?

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  • molerat
    molerat Posts: 34,492 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    It will pay off the items according to the order of payments as listed in your particular card T&Cs. Usually the cash withdrawal but you need to read your terms to confirm.
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