T&C of CC - problem or not?

caveman38

Please help. I don't know if I have screwed up the T&C of my HSBC CC whhich I am using for purchases only.
I am 5 months into the 12 month term and have the max £7K on the card used for purchases.
Yesterday I made a bet on Betfair which was giving a free bet as well. As proof of age I submitted my CC and they took £2.
I now realise that this will be deemed to be a cash advance and perhaps screw up my 0%.
What implications does this transaction have. Please help.

YorkshireBoy

caveman38 wrote: »

What implications does this transaction have.

Worst case scenario...

A £2.50 cash advance fee and 21.9% APR (typical) interest charged on the £4.50 'cash' balance until you clear the entire balance at the end of the 0% introductory period.

Your purchases (already made and to come) 0% rate is unaffected.

caveman38

Cheers YB. I don't know why but I cannot work it out like you. In a nutshell how do you arrive at that result and why is the 0% unaffected. Would it have been different if I had used the card for a BT?

YorkshireBoy

caveman38 wrote: »

In a nutshell how do you arrive at that result...

In a nutshell, I looked at the online summary box.

...and why is the 0% unaffected.

If I can spin the question around...since you haven't contravened any T&C's, why would it not be?

Would it have been different if I had used the card for a BT?

You can use your card for anything you like, within the T&C's, but any payments you make will go towards the lowest interest rate balance first (and in your case, this is the 0% purchases balance).

caveman38

Sorry to drag this on and I do appreciate your help.
What would have been the case if I had BT'd the £7K. I read a thread where a guy did the same as me but had used his card for a BT and then incurred a heavy interest charge and felt the need to find the funds to pay the card off to avoid paying further interest.
Can you explain that please.

YorkshireBoy

The most common 'error' is to make purchases on a card after BT'ing a debt to it.

What generally happens then is that all your monthly payments go towards the lower interest rate debt, eg 2.9% LOB, 0% on BT's etc.

An example being if you'd made use of the HSBC 2.9% LOB (2 years!) offer, and then made some purchases at 0%, you'd pay interest on your purchases from month 13 onwards and until you cleared the entire balance.