Credit card ATM withdrawal interest.

01Martin

I have a Halifax Clarity CC that, when I got it some years ago, didn't charge interest for ATM withdrawals if the balance was repaid in full in the correct time period. The MSE states that interest is now charged on withdrawals even when the balance is paid in full. What does this actually mean? If I pre-load my card with credit, and then withdraw via ATM while abroad, will I be charged interest on the withdrawn cash?

eskbanker

If you preload your card with credit you'll breach the terms of the card, so it's not recommended....

To the best of my knowledge they've always charged interest but if you repay it quickly enough then the effect is minimised.

daveyjp

Pre loading a credit card is never a good idea.  If you want to preload open an account that offers free Forex withdrawals such as a Starling bank account.

Brie

In the past some cards allowed cash withdrawals with no interest charged if you paid by the assigned payment date  - same as with purchases not being charged for if paid in full.  I remember doing this a number of times with my M&S card, withdrawing cash and also buy euros before going on holiday.  Now they're all treated as straight cash withdrawals with interest being charged from the day the money is withdrawn.  

Some CCs might be preloaded without too much hassle but strictly speaking is against the T&Cs for the vast majority.  One way to get round this is to schedule payments and withdraw money on or immediately after the money is credited to the card.  Otherwise the CC company MAY send the credit back to the bank account that was the source of the payment.

bagand96

I've had a clarity card for about a decade (maybe longer) and it's always charged interest on cash withdrawals from the time you withdraw. I've never had an interest free period on cash advances.

I just used to use the Halifax app to see when the transaction appeared and pay it off immediately. That way the interest was pence. 

Not a problem now as I have a fee free debit card if I want cash, but like at home I find I need it less and less. 

400ixl

Must have been a long time ago as my Halifax Clarity CC has always charged interest from day 1 until you paid it off. As above have had it for well over 10 years.

I have always had a DD card that did interchange rates and no fee. Currently Starling and Chase for that purpose depending on where in the world I am.

zagfles

Barclaycard Rewards card doesn't charge interest on cash withdrawals if the statement is paid in full by due date.

Halifax Clarity always has. But as above if paid off within a few days of hitting the account the account the interest will be trivial. But be aware that the previous statement balance must be paid off in full before you can pay off cash withdrawals in the current statement period.

NoodleDoodleMan

Halifax Clarity always included interest on cash advances during the years we used it - can't confirm/refute if that's always been the case historically.

On the one ocassion I withdrew Euros on it, the appropriate amount in GBP was very quickly posted via the Halifax account app on my iPad - it was the only debit on the account at that point so I immediately transferred the relevant sum to the card - ended up paying no interest. Had I let it run for a few days the interest would have been neglibile according to what I'd read.

I eventually ditched Clarity as we had Barclaycard Rewards, which is a better deal IMO, as above.