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  • FIRST POST
    • JamesJdMcN
    • By JamesJdMcN 14th May 18, 7:59 AM
    • 5Posts
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    JamesJdMcN
    Credit Card - Cash Withdrawals
    • #1
    • 14th May 18, 7:59 AM
    Credit Card - Cash Withdrawals 14th May 18 at 7:59 AM
    Hi there,

    I have a Halifax Clarity credit card for using abroad on holidays. I have it set up to pay off monthly by DD.

    It states that interest on cash withdrawals is daily.

    Therefore say if my balance is already 200 from transactions and I take 10 out at an ATM... If I pay off 10 from my credit card that day or the next day will that stop the daily interest accruing on that 10 cash withdrawal or do I have to pay off the full 210 to ensure there is no interest on it?

    Sorry if I haven't explained it very well, please let me know if you require clarification.
Page 1
    • zx81
    • By zx81 14th May 18, 8:01 AM
    • 19,326 Posts
    • 20,629 Thanks
    zx81
    • #2
    • 14th May 18, 8:01 AM
    • #2
    • 14th May 18, 8:01 AM
    You either need to wait until it has statemented or pay off the full amount..
    • chattychappy
    • By chattychappy 14th May 18, 8:20 AM
    • 6,948 Posts
    • 3,795 Thanks
    chattychappy
    • #3
    • 14th May 18, 8:20 AM
    • #3
    • 14th May 18, 8:20 AM
    The problem with DD is that payment is taken as late as possible (ie on the due date) which is not what you want if interest is running.

    As you suspect, any payment you send will pay off statemented transactions before unstatemented transactions. This means that having made your 10 withdrawal, the 10 you send would be applied first to 10 that was on your previous statement and still waiting to be paid off. Meanwhile interest will continue to run on the ATM 10.

    I use Clarity extensively abroad for cash. I don't use DD. Within a few days of each ATM withdrawal, I pay off the entire balance by faster payments. This includes any purchases I have made too. That way I'm only paying pennies.

    You could put your purchases onto a separate card that also doesn't load foreign transactions (Eg Santader Zero - also good for cash, Post Office Mastercard etc). That way you can get longer credit on your purchases.

    Whatever you do, remember to take backup cards (even ones that charge). Also I suggest you don't run yourself low on cash without making the next withdrawal in case you have a problem. Cards are more prone to being blocked when used overseas, whether or not you tell you bank in advance.

    If you retain the DD, be sure to understand how it interacts with manual payments.
    • molerat
    • By molerat 14th May 18, 8:51 AM
    • 19,570 Posts
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    molerat
    • #4
    • 14th May 18, 8:51 AM
    • #4
    • 14th May 18, 8:51 AM
    B7.4 How we apply your payments

    We use your payments to clear any overdue amounts before we apply them to your latest minimum payment.
    We will reduce the amount you owe in the following order:
    • any overdue amounts from previous statements; then
    • the remaining balance on your statement; then
    • any recent transactions not yet shown on your statement.
    The T&Cs explain all !
    https://www.helpforheroes.org.uk/give-support/donate-now/
    • eDicky
    • By eDicky 14th May 18, 9:00 AM
    • 3,918 Posts
    • 2,072 Thanks
    eDicky
    • #5
    • 14th May 18, 9:00 AM
    • #5
    • 14th May 18, 9:00 AM
    Any payment will go first towards paying off the balance that has already appeared on your statement, then to your cash withdrawal(s) and then to any purchases made since your last statement, in that order.

    Most credit cards apply payments in this way, but the new Tandem cashback card (also fee-free overseas) differs in that any payments will go first to cash withdrawals, regardless of any balance that's already statemented. This makes it simpler to pay off overseas cash withdrawals quickly, but may cause a surprise or inconvenience for those not relying on direct debits and wishing to pay off their last statement. Perhaps Tandem have not taken this scenario into account, yet.
    • molerat
    • By molerat 14th May 18, 9:06 AM
    • 19,570 Posts
    • 13,764 Thanks
    molerat
    • #6
    • 14th May 18, 9:06 AM
    • #6
    • 14th May 18, 9:06 AM
    Any payment will go first towards paying off the balance that has already appeared on your statement, then to your cash withdrawal(s) and then to any purchases made since your last statement, in that order.

    Most credit cards apply payments in this way, but the new Tandem cashback card (also fee-free overseas) differs in that any payments will go first to cash withdrawals, regardless of any balance that's already statemented. This makes it simpler to pay off overseas cash withdrawals quickly, but may cause a surprise or inconvenience for those not relying on direct debits and wishing to pay off their last statement. Perhaps Tandem have not taken this scenario into account, yet.
    Originally posted by eDicky
    MBNA do the same.
    https://www.helpforheroes.org.uk/give-support/donate-now/
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