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Tandem card abroad - cash withdrawal interest

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Tandem card abroad - cash withdrawal interest

edited 30 November -1 at 1:00AM in Credit Cards
3 replies 2.9K views
justpassingthrough24justpassingthrough24 Forumite
23 posts
edited 30 November -1 at 1:00AM in Credit Cards
Hi, I've just applied for a tandem credit card. On the website it says "You'll be charged interest from the day you withdraw cash in the UK and abroad".

Can someone clarify what this means?
If I make a cash withdrawal abroad will I be charged interest even if I make the payment back straight away/on the same day?

Thanks :)

Replies

  • stevenhp1987stevenhp1987 Forumite
    907 posts
    Part of the Furniture
    ✭✭✭
    Transactions are not always posted on the day they occur. e.g. a cash withdrawal taking place on the 1st, might not appear until the 3rd. You have to wait until it appears to pay it off without incurring interest.

    For example, if you withdraw £300 on the 1st then on the above scenario you will pay 47p interest on the 3rd (based on 18.9% representative interest) because of the time it took to to post and that's provided you saw it posted on the third and was paid right away.

    Why do people insist on using credit cards for cash instead of actual cash from their own accounts? Get a Starling Bank account and use that for cash!!?!?
  • eDickyeDicky Forumite
    5.2K posts
    Fifth Anniversary 1,000 Posts
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    I have a Tandem card and I have noticed several inconsistencies in the way they have presented information.

    Regarding the beginning of daily interest on a cash withdrawal, in the FAQs it is stated - '... we'll still charge interest from the day the cash withdrawal is processed.' / '... we do charge interest from the day the cash withdrawal is posted to your account.' / '... but we do charge interest from the day the cash withdrawal is settled.'

    These statements seem to indicate that no daily interest is incurred until the date of settlement of a cash withdrawal transaction, so if it's paid off at that time you can avoid any interest. But as I say, I don't consider their information 100% reliable, you can try to clarify by chat if you like.

    You can tell when it becomes settled - the foreign currency amount is then shown with the listed transaction in the app, before that time only the provisional GBP amount is displayed.
    Evolution, not revolution
  • fifekenfifeken Forumite
    2.6K posts
    Part of the Furniture 1,000 Posts
    ✭✭✭✭
    Why do people insist on using credit cards for cash instead of actual cash from their own accounts? Get a Starling Bank account and use that for cash!!?!?

    Because you can get £20 from Halifax for applying and you don't need to rely on a phone app. If you get the Barclaycard one there's no interest on cash withdrawals either if you pay your bill in full. That only lasts until 2022, but Starling may well be charging long before then.
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