CC Interest on Gambling deposits

kingstongold

Stupidly, as I've been informed by MBNA previously, I used my CC to deposit into a new bookies account online.
Anyway, I checked my statement as was charged £3 for each time I did it- 3 times at £5 each deposit.
So as well as paying this £9 in fees, it looks like I will be charged interest too.

I think my standard rate is either 13.9 or 15.9% (MBNA BMI Platinum card) but how much will I have to pay in additional interest?


Thanks
R

YorkshireBoy

Probably around 2% per month on the amount deposited, until you completely clear the entire balance on the card (including any purchases/BT's on there).

What's your cash advance rate?
How much did you deposit?

kingstongold

Three amounts of a fiver:

So £15

Rate is something ludicrous like 20.9%


Its a working card so i've only a small balance which I will clear this month.


What ya reckon, about £3 extra interest?

YorkshireBoy

You'd pay £3 for the year on £15.

If the fees are classed the same as the transaction type (I suspect they are), you may have a £24 balance which is accruing interest.

So, budget for £24 x 2% = 48p (per full month...less if part way through a statement period...and assuming there's no minimum 50p or £1 interest charge), but don't forget there will be some residual interest the following month (or until you clear two consecutive statements in full).

If you want to stop the interest sooner, simply overpay slightly to create a small positive balance.

kingstongold

Thanks for the explanation.

Current balance is about 250£ that will be paid on the 24th.
I guess they are gonna be able to charge interest for about 35days as I put the bet on just before xmas.

So on that concept, especially as the balance has risen from about £100 to £250 as the month has gone on would they take the average or the final amount and charge interest on it?

Disgrace this -how can a gambling transaction be classed as a cash advance

YorkshireBoy

kingstongold wrote: »

So on that concept, especially as the balance has risen from about £100 to £250 as the month has gone on would they take the average or the final amount and charge interest on it?

Interest is calculated daily on interest bearing balances. The fact that your purchases balance has increased is irrelevant.

Disgrace this -how can a gambling transaction be classed as a cash advance

Erm, because you've been given cash, albeit 'virtual' cash, with which to gamble?

kingstongold

yeah, before they didnt treat it as a cash advance but i think that is a good while ago mind!
Cheers for the info, I'll look forward to no doubt paying over the odds!

bigturnip

Barclaycard don't charge me for depositing into betfair, I'm forever using it as a way of getting an interest free cash advance, I just withdraw it straight back out to my bank and as long as I pay it off at the end of each month it's an interest free advance. It takes about 3 days to show in my bank account, so you have to plan ahead, but not a bad way of making up a shortfall at the end of the month.

King_Of_Fools

bigturnip wrote: »

Barclaycard don't charge me for depositing into betfair, I'm forever using it as a way of getting an interest free cash advance, I just withdraw it straight back out to my bank and as long as I pay it off at the end of each month it's an interest free advance. It takes about 3 days to show in my bank account, so you have to plan ahead, but not a bad way of making up a shortfall at the end of the month.

I am not having a go at you but it is for exactly this reason that other credit cards have changed the rules on gambling transactions. I would expect Barclaycard to follow soon.

kingstongold

Thats class big turnip.

Do you still get charged the cash transaction charge of £3 or so but then no additional interest, as thats somethign that could be good to note for the future!!?

ad44downey

bigturnip wrote: »

Barclaycard don't charge me for depositing into betfair, I'm forever using it as a way of getting an interest free cash advance, I just withdraw it straight back out to my bank and as long as I pay it off at the end of each month it's an interest free advance. It takes about 3 days to show in my bank account, so you have to plan ahead, but not a bad way of making up a shortfall at the end of the month.

Betfair charge 1.5% for credit card deposits though, don't they?