Would I get charged interest taking cash out of ATM?? Advice needed...

mufc132

Hi all,

After a bit of advice... I want to buy something off a friend, using my credit card (£1,500ish). My card has an interest free offer on purchases for 24 months, so a long time to pay it off. What's the best way to get the money to him? Am I right in thinking that if I withdrew the cash from an ATM (over a few days), then I'd be charged interest on this from day 1 as it's not classed as a purchase?

Is there any way around this to get the interest free months and still get the money to my friend/his account..??

Cheers in advance

[Deleted User]

Don't take out cash. Interest and fees will apply.

If you can't get a money transfer card, then put your regular spending on the card, and give him cash out of your current account, while making the minimum repayments on the card.

mufc132

I've got a purchase card with 2 years interest free on purchases, so I think like you suggest it might have to be out of my current account and just use the credit card for normal purchases I would have used my debit card for, and do it that way.

Wondered if there was a way around it, to get him the money straight from my card. I suppose he could put the item on eBay with a buy it now price and I use the card to buy it

Buzby

Doesn't make sense as you'll both lose our - he'll pay sellers and PayPal fees that means you need to pay him around 15% more just to get the money to him.

Chrysalis

cash withdrawals have fee's and interest.

even if paid in full at 60 days you have interest.

Dandytf

ATM's will warn of cash fees from credit cards before dispensing cash-in fact often immediatley after inserting a credit card-an extrea click compared to debit card.

I have used cash from credit cards for small amounts though never used the same card until balance was cleaared over a few payments, a sort of emergancy cash debit, not often and for a sensible reason at that time.

Forgot to add there are cards that allow cash withdrawels at a reasonable fee/rate-Tesco bank is1 though I've never neede to use that fo cash.

cjv

You could look into PayPals request money option, it should allow your friend to send you an invoice which you can pay with your credit card. Be sure to check the fees too, to see if it is worth it.

mufc132

Hmm. Thanks for replies all.

I think the best option may be to pay from current account on payday, and then use credit card for purchases throughout the month. Is it possible to transfer money from the credit card to current account, or would this again incur interest straight away and not qualify for the interest free period?

MallyGirl

mufc132 wrote: »

Is it possible to transfer money from the credit card to current account, or would this again incur interest straight away and not qualify for the interest free period?

you would need a money transfer 0% deal for that, not a purchases 0% deal.

mufc132

Thanks Mally. Should really have asked this question before getting a 0% purchase card shouldn't I?!

Dandytf

mufc132 wrote: »

Thanks Mally. Should really have asked this question before getting a 0% purchase card shouldn't I?!

Not neccesarily, e.g. Tesco foundation purchases and cash tranfers same rate 27.5 %-cand mind the fee pos 3%.

There are other providers who will offer lower rates as mentioned inc 0% though cardir rating would have to excllent-no adverse or missed payments