Withdrew cashback on Credit Card by mistake

tel_

I got distracted at an ATM today, and accidentally used my new CC to withdraw £40 cash, instead of using my Debit Card, which has cash in the account.  My CC has 0% interest for 20 months, but charges for cash withdrawals at an Annual Int. Rate of 29.8%, with an added charge of 2.99% (minimum £3.00).

As this is a new card, and the balance to pay is only £110 (including the £40 cash withdrawal today), my thinking is to pay the total balance off at my earliest opportunity?

I usually pay off the minimum each month on my CC's, as I have that 0% facility, and a few weeks before the 0% ends, pay it off in full. (I do the stoozing thing).

Will I now jeopardise my 0%, or once I've paid off my £110 balance (and kind of starting afresh), will the zero percent rate still apply?

I've never withdrawn cash on a CC before.

Brie

My CC has 0% interest for 20 months

For what?  Purchases?  Or something else?  

I would at a minimum pay the £40 back so that the interest doesn't accrue.  But you may need to check your T&Cs.  It seems that some cards will rack up the interest despite paying it back early and you may find you do just as well waiting until the statement is issued.  

Legally CCs have to apply any payment made to that portion of the balance that is accruing the highest interest (so your cash advance) but as above some don't put this into play until your advance is showing on a statement (why? no idea.  seems scummy to me).  But worst case scenario if you pay £40 now you MIGHT not be charged a lot of interest.  But they may also might apply that £40 to purchases already made as there's also a protocol of applying payments to earliest transactions first.  It will really depend on your card.

Ultimately if you do have a 0% on purchases for 20 months and you've had this one blip I don't think it will affect your 0% deal long term.  

born_again

Ring them up & explain the error. You might get lucky & they put it back on purchase plan.
You can then pay it straight off.

Emmia

Just a question - do you have the same pin number for both your credit and debit cards?

If I'd inserted my credit card, and popped in my debit card pin it would have told me I had the wrong number - which would have indicated that I'd put the wrong card in the machine, before I'd got anywhere near taking cash out.

tel_

Brie said:

My CC has 0% interest for 20 months

For what?  Purchases?  Or something else?  

I would at a minimum pay the £40 back so that the interest doesn't accrue.  But you may need to check your T&Cs.  It seems that some cards will rack up the interest despite paying it back early and you may find you do just as well waiting until the statement is issued.  

Legally CCs have to apply any payment made to that portion of the balance that is accruing the highest interest (so your cash advance) but as above some don't put this into play until your advance is showing on a statement (why? no idea.  seems scummy to me).  But worst case scenario if you pay £40 now you MIGHT not be charged a lot of interest.  But they may also might apply that £40 to purchases already made as there's also a protocol of applying payments to earliest transactions first.  It will really depend on your card.

Ultimately if you do have a 0% on purchases for 20 months and you've had this one blip I don't think it will affect your 0% deal long term.  

I probably should have outlined that my CC is with HSBC - their Purchase Plus Credit Card. And yes, the 0% is for purchases.

As for paying the £40 first, I'm sure they will just allocate it to the first couple of purchased transactions. That's why it's no bother for me having to pay off the whole £110 balance in gone go - different if I had used the card for many months, racking-up a few grands worth of debt on it, and then mistakenly taken cash out on it.

tel_

Emmia said:

Just a question - do you have the same pin number for both your credit and debit cards?

If I'd inserted my credit card, and popped in my debit card pin it would have told me I had the wrong number - which would have indicated that I'd put the wrong card in the machine, before I'd got anywhere near taking cash out.

My CC has a different PIN to my DC.

When I got to the ATM, one person was at the machine, and another person waiting in line. After the person using the machine had gone, the person next in line let me go next, as he muttered that he had a lot of transactions to do on.  As I was inserting my card into the machine etc, it suddenly occurred to me this guy might be up to no good etc (suspicious mind I know, lol), so I wasn't paying full attention at the time (even though the ATM did warn me I might be charged for this transaction, and I still pressed YES!). It wasn't until the money had popped out and then my card, that I realised what I had done.

Emmia

tel_ said:

Emmia said:

Just a question - do you have the same pin number for both your credit and debit cards?

If I'd inserted my credit card, and popped in my debit card pin it would have told me I had the wrong number - which would have indicated that I'd put the wrong card in the machine, before I'd got anywhere near taking cash out.

My CC has a different PIN to my DC.

When I got to the ATM, one person was at the machine, and another person waiting in line. After the person using the machine had gone, the person next in line let me go next, as he muttered that he had a lot of transactions to do on.  As I was inserting my card into the machine etc, it suddenly occurred to me this guy might be up to no good etc (suspicious mind I know, lol), so I wasn't paying full attention at the time (even though the ATM did warn me I might be charged for this transaction, and I still pressed YES!). It wasn't until the money had popped out and then my card, that I realised what I had done.

So you knowingly entered your CC pin... 

tel_

Emmia said:

So you knowingly entered your CC pin... 

I totally forgot about which card I was using. I pay for practically everything on CC now, so when it comes to using my DB (for cash withdrawing), it's once in a blue moon.

CliveOfIndia

The safest way is to repay the full balance as soon as possible - though you will probably still get hit with a small amount of trailing interest next month as well.

Strictly speaking you only need to repay the cash withdrawal element, plus the fee plus a couple of days or whatever of interest, depending on when you make the payment.  But it can be tricky to calculate the exact amount of interest unless you know exactly when the transaction gets statemented, and exactly when your payment gets cleared.  Maybe make a payment of £50 or £60 ?  That should cover the cash, the fee and interest, though you'll probably still get a bit of trailing interest next month, unless you can make the payment on the same day as the withdrawal clears on your account.

Do check that the cash withdrawal has been statemented though - you need to wait until it's showing on your statement as a cleared transaction before making the payment, otherwise your payment won't get allocated to that portion of the debt.  Thankfully in this day and age of the t'interweb thingy you can keep any eye on your account in real-time, no need to wait until the envelope lands on your doormat at the end of the month

Withdrawing cash won't affect your ongoing 0% offer - it's only if you fail to make the minimum payment on time that they'll usually withdraw any offers you've currently got.

tel_

CliveOfIndia said:

The safest way is to repay the full balance as soon as possible - though you will probably still get hit with a small amount of trailing interest next month as well.

Strictly speaking you only need to repay the cash withdrawal element, plus the fee plus a couple of days or whatever of interest, depending on when you make the payment.  But it can be tricky to calculate the exact amount of interest unless you know exactly when the transaction gets statemented, and exactly when your payment gets cleared.  Maybe make a payment of £50 or £60 ?  That should cover the cash, the fee and interest, though you'll probably still get a bit of trailing interest next month, unless you can make the payment on the same day as the withdrawal clears on your account.

Do check that the cash withdrawal has been statemented though - you need to wait until it's showing on your statement as a cleared transaction before making the payment, otherwise your payment won't get allocated to that portion of the debt.  Thankfully in this day and age of the t'interweb thingy you can keep any eye on your account in real-time, no need to wait until the envelope lands on your doormat at the end of the month

Withdrawing cash won't affect your ongoing 0% offer - it's only if you fail to make the minimum payment on time that they'll usually withdraw any offers you've currently got.

Thank-you CliveOfIndia for your knowledge.

I'm definitely going to check my account daily then, and see when that withdrawal payment appears and pay it off. 

It doesn't sound like this is going to impact the use of my account too badly at all then, unless I keep making this mistake, and withdrawing £100's at that eye-watering 29.8%.

born_again

tel_ said:

CliveOfIndia said:

The safest way is to repay the full balance as soon as possible - though you will probably still get hit with a small amount of trailing interest next month as well.

Strictly speaking you only need to repay the cash withdrawal element, plus the fee plus a couple of days or whatever of interest, depending on when you make the payment.  But it can be tricky to calculate the exact amount of interest unless you know exactly when the transaction gets statemented, and exactly when your payment gets cleared.  Maybe make a payment of £50 or £60 ?  That should cover the cash, the fee and interest, though you'll probably still get a bit of trailing interest next month, unless you can make the payment on the same day as the withdrawal clears on your account.

Do check that the cash withdrawal has been statemented though - you need to wait until it's showing on your statement as a cleared transaction before making the payment, otherwise your payment won't get allocated to that portion of the debt.  Thankfully in this day and age of the t'interweb thingy you can keep any eye on your account in real-time, no need to wait until the envelope lands on your doormat at the end of the month

Withdrawing cash won't affect your ongoing 0% offer - it's only if you fail to make the minimum payment on time that they'll usually withdraw any offers you've currently got.

Thank-you CliveOfIndia for your knowledge.

I'm definitely going to check my account daily then, and see when that withdrawal payment appears and pay it off. 

It doesn't sound like this is going to impact the use of my account too badly at all then, unless I keep making this mistake, and withdrawing £100's at that eye-watering 29.8%.

DON'T.
Pay that & it will go towards your last statement balance. Not you cash transaction.

As I said before ring & explain & they can change it to a purchase for you if you have not done before. Done this for plenty of customer who do it in error.