Barlcaycard T&Cs Change: Cash Withdrawals

miller

We’re getting in touch to let you know about some changes we’re making to your terms and conditions from 26 January 2021

https://www.barclaycard.co.uk/content/dam/barclaycard/documents/personal/existing-customers/summary-of-key-changes-barclaycard-core-2020.pdf

If you pay your main balance in full – plus If you pay any instalment plan payments due that month – you’ll no longer pay interest on sterling cash transactions (for example, when you take cash out with your card in the UK).

Zellah

Also received this by email today - I have a Barclaycard Rewards account.  This means that the Barclaycard Rewards card is the only non sub-prime credit card out there which doesn't charge fees or interest on both UK and overseas cash wifthdrawals, provided they're paid off in full by statement due date. The last such card I can remember which was similar was the Sainsburys credit card 10+ years ago.

Before anyone starts howling that cash withdrawals have a negative effect on your credit rating/history, they don't - provided they're paid off quickly. Otherwise cards like the Halifax Clarity wouldn't be extremely popular for overseas cash withdrawals, though of course not many of us will be travelling abroad at the moment.

<Now patiently waits for another Barclaycard email telling me my credit limit has been reduced to £250> 🤣

CRISPIANNE3

Barclaycard sent me. an email yesterday advising my cash rate is going down from 27% to 17%. However not something I would take advantage of. Also clear my cards each month unless a promotional offer.

sleepyjones

Other half got an email from Vanquis this morning offering "Fee free" transfer to your bank account.
Doesn't apply to cash machines I don't think, it specifically said "bank transfer via the app" ... I don't know what the interest rate or anything is on it but it definitely said "We'll charge you no fees"

Yahoo_Mail

sleepyjones said:

Other half got an email from Vanquis this morning offering "Fee free" transfer to your bank account.
Doesn't apply to cash machines I don't think, it specifically said "bank transfer via the app" ... I don't know what the interest rate or anything is on it but it definitely said "We'll charge you no fees"

The cash interest rate appears to be the same as the purchases rate, i.e. eye-watering.

jonesMUFCforever

My Barclaycard I use for day to day purchases and is paid off in full every month by direct debit.
When this kicks in will I be able to withdraw cash from the card (without charge and interest) and get the cashback?

SuperAllyB

jonesMUFCforever said:

My Barclaycard I use for day to day purchases and is paid off in full every month by direct debit.
When this kicks in will I be able to withdraw cash from the card (without charge and interest) and get the cashback?

I haven't searched specifically but I don't think fees are mentioned in the email, only that there will be no interest if paid in full by due date.

Can't see it qualifying for cashback either but who knows?

sleepyjones

Isn't taking a cash advance on credit cards frowned upon in regards to your credit file?

Ebe_Scrooge

sleepyjones said:

Isn't taking a cash advance on credit cards frowned upon in regards to your credit file?

Anecdotally yes.  I think in practice it depends largely on frequency.  The occasional cash withdrawal won't have much, if any, effect, but frequent withdrawals will.  This seems logical - why would you need to withdraw from your credit card if you have the cash in the bank, why not just use your debit card instead?  The implication is that you're desperate for cash and have none in the bank.

An occasional withdrawal if, for instance, you're in town and have forgotten your debit card, won't hurt.  Likewise, the "sensible" option of using something like the Halifax Clarity abroad to save on fees, once a year or whatever, is fine.  It's usually frequent withdrawals that start to cause an issue.

Zellah

sleepyjones said:

Isn't taking a cash advance on credit cards frowned upon in regards to your credit file?

Only if you don't pay off the cash withdrawals quickly. I've frequently been using fee free credit cards to withdraw cash for the last 20 years (mainly abroad but occasionally UK as well) and they have always been paid off quickly (within 1-2 weeks). Never had any issue with getting credit - had a mortgage, loan etc in that time

Zellah

Ebe_Scrooge said:

sleepyjones said:

Isn't taking a cash advance on credit cards frowned upon in regards to your credit file?

Anecdotally yes.  I think in practice it depends largely on frequency.  The occasional cash withdrawal won't have much, if any, effect, but frequent withdrawals will.  This seems logical - why would you need to withdraw from your credit card if you have the cash in the bank, why not just use your debit card instead?  The implication is that you're desperate for cash and have none in the bank.

An occasional withdrawal if, for instance, you're in town and have forgotten your debit card, won't hurt.  Likewise, the "sensible" option of using something like the Halifax Clarity abroad to save on fees, once a year or whatever, is fine.  It's usually frequent withdrawals that start to cause an issue.

Because if you're abroad, a credit card cash withdrawal (eg using Halifax Clarity CC) can work out much, much cheaper than using a bog standard debit card which charges 2%+ in commission charges. Frequent cash withdrawals on a CC - home or abroad - only have a negative effect if you don't pay them off quickly.