Credit card cash withdrawal question

Punmanuk

Hey guys..got a silly question..got my halifaxcredit card..the limit is 1000 pounds..so would I be correct that I can withdraw only 500 pounds in cash and the other 500 pounds will have to be used as transaction in shops etc??

damoC

No you can withdraw a maximum of 500 a day. You will get charged for it and interest on top from the start. I would strongly advise against it and look at a money transfer card instead if you desperatley need it.

On anothe note if it's the halifax clarity card there is no withdrawel fee but interest is added from day 1. I would still advise against it.

Ebe_Scrooge

No, you can withdraw as much cash as you like. Most cards have a percentage limit - for example, they may limit you to a maximum of 75% of your limit as cash withdrawals. Also, there's usually a limit as to what you can withdraw from a cash machine ( usually £500 per day ), but you can withdraw more over the counter. You'd need to check the specific T&Cs for your particular card.


Be aware, though, cash advances are very expensive. You'll usually be charged a fee for withdrawing cash, as well as being charged interest from the day you withdraw it - even if you pay off the balance in full when the statement arrives.


It also has a slightly negative effect on your credit history, as it can make it look like you're desperate for cash. So in general, withdrawing cash is not a good idea ( with a few rare exceptions when abroad, but that's a different subject ).

chattychappy

Ebe_Scrooge wrote: »

Be aware, though, cash advances are very expensive. You'll usually be charged a fee for withdrawing cash, as well as being charged interest from the day you withdraw it - even if you pay off the balance in full when the statement arrives.

Yep, unless it's Clarity. In this case, as DamoC notes, it's just interest from the date of withdrawal - and probably at a rather reasonable rate. Depending on the OP's situation, this could be cheaper than the alternatives - overdraft fees/interest, paying a bill late and incurring charges etc.

Ebe_Scrooge wrote: »

It also has a slightly negative effect on your credit history, as it can make it look like you're desperate for cash. So in general, withdrawing cash is not a good idea ( with a few rare exceptions when abroad, but that's a different subject ).

I think it is only negative when combined with other factors: close to limits, missed payments, only paying minimums. I'm withdrawing cash on Clarity/Santander Zero every week, and never have a problem getting credit. (The reference agencies don't show whether cash withdrawals are overseas and/or on so-called travel cards.) For those that believe in such things, my Experian score is 999.

pcman1985

chattychappy wrote: »

Yep, unless it's Clarity. In this case, as DamoC notes, it's just interest from the date of withdrawal - and probably at a rather reasonable rate. Depending on the OP's situation, this could be cheaper than the alternatives - overdraft fees/interest, paying a bill late and incurring charges etc.



I think it is only negative when combined with other factors: close to limits, missed payments, only paying minimums. I'm withdrawing cash on Clarity/Santander Zero every week, and never have a problem getting credit. (The reference agencies don't show whether cash withdrawals are overseas and/or on so-called travel cards.) For those that believe in such things, my Experian score is 999.

Congrats, such a shame that no lender will use that number when deciding whether to approve you for credit or not.

PeacefulWaters

pcman1985 wrote: »

Congrats, such a shame that no lender will use that number when deciding whether to approve you for credit or not.

While true, the poster does make the point that he has no issues getting credit despite being a user of the cash advance.

chattychappy

pcman1985 wrote: »

Congrats, such a shame that no lender will use that number when deciding whether to approve you for credit or not.

Quite correct. I did qualify what I say by saying "for those that believe in such things" (personally I don't - at least using the score as a direct guide to credit worthiness).

The most I can say about the "score" is it is a reflection of what Experian (rather than lenders) think about my history - a history saturated with cash advances. If Experian don't see it as a problem (not even to the extent of chipping a point off the score they generate) then perhaps lenders don't either.