Accidentally used credit card in cashpoint

cymruchris

Additionally, if you follow your mythical, magical, made-up credit scores, you'll see a distinct drop once the card company updates the CRA with the fact you've made a cash withdrawal on your credit card. You'll get all kinds of doom and gloom warnings - but once 3 months pass - it'll all be back to normal. 

Ebe_Scrooge

Brie said:

why would there be a fee for a cash withdrawal??  None of the cards I have charge a fee for withdrawing cash but they do charge interest from day 1.  Fees only happen if I either use a fee charging ATM (haven't in the last decade) or am outside the UK.

The best thing to do (IMHO) is to simply pay the £50 on to the card asap.  All payments have to be allocated to that part of the balance that has the highest interest rate and that will be the cash withdrawal.   There will still be some trailing interest but you might eliminate some of that by paying £1 more than your balance at the end of the month.  That would also prevent any issues with further purchases next month attracting interest.  

Most credit cards charge a fee for cash withdrawals, whether in the UK or abroad.  There may be exceptions of course, but the majority will charge a fee plus interest.

You're correct in that an immediate payment of £50 will be allocated to the highest-interest debt, which is almost always a cash withdrawal.  The trailing interest will be peanuts, and will have no effect upon the standard "no interest on purchases" rule so long as you pay the next statement in full as usual.  The standard rule for any card where you've paid interest - whether by making a cash withdrawal or by paying less than the full statement balance - is that after you've paid the next 2 statements in full, it'll all sort itself out.

RobM99

Pay up and don't worry about it. Just take it as a lesson - never again!

Chino

cymruchris said:

Additionally, if you follow your mythical, magical, made-up credit scores, you'll see a distinct drop once the card company updates the CRA with the fact you've made a cash withdrawal on your credit card.

On what experience/evidence do you assert this?

born_again

Brie said:

The best thing to do (IMHO) is to simply pay the £50 on to the card asap.  All payments have to be allocated to that part of the balance that has the highest interest rate and that will be the cash withdrawal.   There will still be some trailing interest but you might eliminate some of that by paying £1 more than your balance at the end of the month.  That would also prevent any issues with further purchases next month attracting interest.  

But do wait till you see it has debited, or the payment will go against any o/s balance. Remember that a CC will not show a cash withdrawal straight away, unlike a debit card.

wiseonesomeofthetime

Chino said:

cymruchris said:

Additionally, if you follow your mythical, magical, made-up credit scores, you'll see a distinct drop once the card company updates the CRA with the fact you've made a cash withdrawal on your credit card.

On what experience/evidence do you assert this?

Presumably the numerous posts on the MSE forum, where users have stated that they have used their credit card for cash withdrawals abroad, which is catered for within the use of the particular cards, yet the CRAs have failed to acknowledge this and reduced the users' mythical credit scores accordingly as their algorithms just presume an "act of desperation" by the use of the credit card in an ATM 🤷‍♂️

Unless you are a true "believer" in the CRA's credit scores, it's not a great deal to be concerned about imo.

cymruchris

Chino said:

cymruchris said:

Additionally, if you follow your mythical, magical, made-up credit scores, you'll see a distinct drop once the card company updates the CRA with the fact you've made a cash withdrawal on your credit card.

On what experience/evidence do you assert this?

I travelled to Germany for a wedding. Took out 100 Euros in cash - as it was interest free and fee free - then paid the balance as soon as it hit my account the next day. There were no fees - no interest - that was absolutely spot-on - but once the info reached my credit files, my mythical score tanked, and the various credit karma's etc were all flagging up all kinds of warnings as to why I shouldn't be using my credit card for cash. Then after three months - everything went back to normal. 

That's the experience I assert this with. 

phillw

Your best bet when you make mistakes is to contact the issuer, explain the mistake and ask them how to best deal with it to avoid additional interest. Sometimes with residual interest they can stop it accruing. It's always worth asking what charges and interest you'll be charged and then be nice and ask if there is any way any of them can be waived as it was  the first time.

I've never had it with cash withdrawals, but I've usually managed to get missed payments sorted. Apart from AA, when I was using them for the 30 spend and save transactions and it messed up the DD, they are quite harsh and I figured they were more likely to cancel my credit card...

Ebe_Scrooge

phillw said:

Apart from AA ... messed up the DD, they are quite harsh

If you were Drunk and Disorderly at an Alcoholics Anonymous meeting, I'm not surprised they were harsh on you!  

[Deleted User]

thanks all