Got a 0% Credit Card for 13 months, need to buy a car....

Not that I'm aware of - when they upped my credit limit last month, they sent me a cheque presumably to try and get me to use it for a £600 cash advance - all the terms stated was that a 2.5% charge applies.

I don't see why they would impose any such cap, or additional interest as it surely makes no odds to them whether payment is made to a retailer or transferred to your bank. I mean, I could just pay myself £3000 with my online merchant account if nothing else :P My point being is that they are providing the same amount of money either way.
 
MikeHiow said:
My credit card does not charge me any extra interest on a cash advance, merely a 2.5% fee on the amount I take, so why would he start paying interest when doing a cash advance?
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Here we go again :rolleyes:

When you make a cash withdraw on the card you have, you are charged a 2.5% handling fee and you are charged your standard interest rate from the day of the cash withdrawl.

The OP has a card with a promotional rate on it - 0% on purchases and balance transfers. These promotional rates almost always exclude cash advances - I think Egg once had a card that let you balance transfer from a current account but they are quite hard to find now - therefore anything not included in the promotional rate will be charged at the cards standard interest, typically 20-30% APR.

So, if he uses a credit card with an interest rate of 0% on purchases to withdraw cash, he'll pay considerably for it - much more than taking out a loan for example.

I don't see why they would impose any such cap, or additional interest as it surely makes no odds to them whether payment is made to a retailer or transferred to your bank.
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So because you don't see why on a subject you dont know much about, its time for a MikeHiow v the world fight? There are numerous reasons why a cash advance is treated differently to a purchase - probably one of the biggest is that withdrawing cash from an ATM doesn't provide the credit card company with merchant fees for the transaction on the same level as it does for a purchase - so there is literally NO money in it for them. Also, people making large cash withdrawls on credit cards are historically often a poorer credit risk - people needing cash fast are probably not who they wish to attract with the promotional rates.

They are so desperate to not treat a cash advance like a purchase that even if you purchase foreign currency, the transaction still goes down as a cash advance and is charged as thus..
 
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In all these years and i think 5 credit cards i now i have i never once read the blurb and new all that.
 
often the cash rate is a bit higher than the purchases rate. the figures are normally on the back of the monthly statement from memory.
 
[TW]Fox;18206918 said:
I think Egg once had a card that let you balance transfer from a current account but they are quite hard to find now
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I had an Egg card that let you move money into a current account and it didn't charge cash rates - from a machine yes, transfer - no.

It used to be Egg and any MBNA backed card. Not sure if they still do it now.

Paypal would sting you badly. I had to use paypal to buy my old Jeep and it was £50 on £1500 - and that was before the fees went through the roof.
 
[TW]Fox;18206918 said:
So because you don't see why on a subject you dont know much about, its time for a MikeHiow v the world fight?
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No, my own credit card makes no mention of any additional interests or charges (beyond that 2.5%) that indicate that a cash advance is any different to the 0%.

Also you state that cash advances make no money for them? My merchant account charges me 3% to take credit cards, whilst my credit card charges me 2.5% to take a cash advance (whether its via cash machine or transferred to my bank).

Regardless of which, why do you alwaysneed to make such a big deal out of it, blowing it all out of proportion? It isn't like I said "LOL, NO THEY DONT 100% YOU LIE", I questioned it in a humble manner and put across my reasoning. Yet your reply makes it sound like you are replying to just that sort of quote.
 
My HSBC Credit card allows me to balance transfer directly to my current account, allows quick cash but not actually regarded as a cash advance as cash is not dispensed by the card provider.

MikeHiow said:
My credit card does not charge me any extra interest on a cash advance, merely a 2.5% fee on the amount I take, so why would he start paying interest when doing a cash advance?
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extra interest? Compared to a 0% balance transer deal?

Are you saying you take cash out of a machine and it acrues NO interest, EVER?

Clown.
 
What even remotely looks like I'm saying it charges no interest? I said it doesn't charge me any interest ever? I said it doesn't incur any additional interest.

If your HSBC card does not count bank transfer advances as a cash advance, would it be fair to assume that if you did it under 0% deal then there would be no penalty for it?
 
We are specifically discussing a card with 0% promotional rate Mike.

It is irrelevent how much your card does or doesnt charge you on top of your NORMAL interest rate because the OP's card does NOT have a normal interest rate, it has a promotional rate.

Cash Advances are almost always excluded from a 0% on purchases offer. It is THAT simple. I don't see any point in discussing your card as you dont have a 0% promotional rate on purchases.

Honestly, you do yourself no favours. Yet again you are arguing some completely irrelevent point.

Promotional rates are charged completely differently.

But just for you I went to the first card company I could think of and took this from the website:

Interest rates Introductory Rates Monthly interest rate Annual interest rate
Purchases 0% for 12 months from account opening, 1.456%, 18.9%
Cash withdrawals N/a, 2.075%, 27.9%

As you can see - NO INTRODUCTUORY RATE for cash withdrawl. 27.9% APR on cash withdrawl.
 
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Feel free to simply present this information - I took offense to my post being ripped apart as if I've been insisting you are 100% wrong, when instead I've simply been asking questions based on my own experience.
 
FWIW, MBNA Platinum Plus and Virgin credit cards are offering "Super Balance Transfer" at the moment. There's a slightly higher balance transfer fee, but you can transfer cash to a current account with them

i used one a few years back to clear my student overdraft.
 
MikeHiow said:
What even remotely looks like I'm saying it charges no interest? I said it doesn't charge me any interest ever? I said it doesn't incur any additional interest.
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Because you sare using the word 'extra' to a promotional rate that the OP obviously has.

Next?

All cards I have had generally were 2-3% more for cash over BTs or purchases so I even doubt your claim when not applied to the actual point beinge discussed here.
 
They are one of the only firms doing that, mind. And the fee makes it more expensive though cheaper than a loan. But the op already has the card.
 
[TW]Fox;18207471 said:
They are one of the only firms doing that, mind. And the fee makes it more expensive though cheaper than a loan. But the op already has the card.
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indeed - but for anyone else considering this option it opens up private car sales too.
 
It's quite simple. Cash withdrawals on a credit card are seen as desperate times by card issuers which is why the interest rate is charged from day 1 of the withdrawal. You are effectively taking that money out immediately as opposed to making a purchase and paying off the credit card when you have the funds.

So, it's all very well taking out the cash on a CC and paying off your balance in full but you will not enjoy the "upto 56 days" of non interest acruing payments
 
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