Oops, cash withdrawal on CC

TwinLizzy

:mad: Kicking myself for accidentally withdrawing £20 on our CC. Normally pay off in full by DD every month. So if I manually pay off in full as soon as the cash withdrawal clears, with a bit extra (how much?) to cover the interest, will that be the end of the interest being charged? Only have one CC, so all spending goes on there.

YorkshireBoy

£20 will probably attract a 3% (minimum £3) cash advance fee.

So the interest will be...

£23 x 1.5942% / 31 x 5 (days) = 6p :rolleyes:

So, clear your purchases balance + £20 + £3 + 6p

Rounding the 6p up to a pound would be the best move.

Don't use the card again for purchases until your payment has cleared.

Depending on the card, the DD may also be collected...regardless of any payment you make in the interim.


Assumptions:

Cash advance rate is 20.9% APR
Cash balance exists for 5 days
Cash advance fee is 3% (min £3)


Suggestions:

Separate PIN for your debit/credit cards
Credit cards in a separate compartment in your purse
Put a big black X on your credit cards with marker pen

ShelfStacker_3

If you're paying in full by DD, they should automatically take out enough to cover the interest, and you're on a clean slate for the next month.

The fees and interest rates are covered in your credit card agreement, have a flick through them quickly and work out how much you're going to be charged.

ShelfStacker_3

Actually, something I forgot to mention; most likely, if you just pay off the amount of the withdrawal + interest, you'll STILL be charged interest, as the payment will be allocated to purchases first. You may just have to suck up the interest charges, because unless you pay off the card in full right this very second you'll carry on being charged it until your DD comes out.

YorkshireBoy

ShelfStacker wrote: »

If you're paying in full by DD, they should automatically take out enough to cover the interest, and you're on a clean slate for the next month.

There is (generally) no interest free period on cash advances, so interest will accrue from the statement date until the due (DD collection) date. This 'residual interest' will then be collected the following month.

Worse, it could be rounded up to 50p/£1 depending on the card.

TwinLizzy

Thanks ShelfStacker - was planning to pay off in full as soon as the cash withdrawal appears - which I guess may not be until Monday? I was being a bit lazy asking on here rather than checking the smallprint. I wonder what proportion of posts on here are for exactly that reason?! :think:

James

TwinLizzy wrote: »

:mad: Kicking myself for accidentally withdrawing £20 on our CC. .

Easily done and you're not the first.

Bet you use the same PIN for more than 1 card.

The Banking Code at the start of the decade used to ask if you wanted a PIN with your credit card so you could withdraw cash at ATM's (Not a good idea). Not they tell you they're sending you a PIN, and never mention Chip & Signature Cards.

The easiest way to prevent this happening to you again is to replace ALL your Chip & PIN Credit Cards with Chip & Signature Cards (No PIN, No Mistakes, No Liability Issues).

TwinLizzy

It's because I'm so used to whipping out the CC and using that PIN - brain just not in gear, nothing to do with using same PIN. Debit card with different PIN rarely gets used so is in another pocket. Lesson learned, brain will now engage.

TwinLizzy

OK, all cleared and paid off in full. Do I have to wait for a statement showing a zero balance (actually credit balance as I overpaid to cover interest and we since had a refund too) or will the payment I have made now be counted towards purchases on the latter half of the statement before the cash?