Credit Card ATM Withdrawel

RandolphEsq

As you are no doubt aware it is idiotic to use your credit card to withdraw from an ATM as the interest rate is round about 24%. Typical APR for purchases is roughly 17%. That is a difference of 8euro for every 100euro withdrawn.
Logically thus it follows that if you are looking to get cash from your credit card you should be prepared to pay big time for it.
However, if you lodge money into an online gambling website you will be charged 17%. You can then withdraw this money and they will send out a cheque to you (receive in about 3-4 working days). Thus one can save on the 8%.
E.g. if you needed holiday spending cash

High&Low

BrightEyes wrote: »

As you are no doubt aware it is idiotic to use your credit card to withdraw from an ATM as the interest rate is round about 24%. Typical APR for purchases is roughly 17%. That is a difference of 8euro for every 100euro withdrawn.
Logically thus it follows that if you are looking to get cash from your credit card you should be prepared to pay big time for it.
However, if you lodge money into an online gambling website you will be charged 17%. You can then withdraw this money and they will send out a cheque to you (receive in about 3-4 working days). Thus one can save on the 8%.
E.g. if you needed holiday spending cash

Really sound financial advice :rolleyes:

seamus

A small loan from the bank of less than €1000 will only cost around 8% and if you're in good standing you'll get it the same day you apply. This means that if you borrow €1k and pay it off in 6 months, it will have cost you around €40.

To follow your gambling site initiative, you'll stick the €1000 into the site and get back €830. If you pay the €1000 off the card within six months @ 17% apr, you'll have paid €85 in interest. Total cost of credit will be €255 over six months, or a whopping 51% apr.

Credit cards should be for incidental purchases that you intend to pay off immediately or within whatever interest-free period you have. They shouldn't be used as a loan facility.

RandolphEsq

I suppose it more applies to me since I only have a 3% APR

seamus

BrightEyes wrote: »

I suppose it more applies to me since I only have a 3% APR

Are you sure? What kind of Credit Card gives a fixed 3% on all purchases?

RandolphEsq

A student one! It is only for my first year though so needless to say I am exploiting it

EDIT: Sorry its 3.9% (AIB)

ejmaztec

Credit card cash is for desperate people. Some individuals with several unmanageable cards juggle cash withdrawals to pay minimum payments on the others, and end up in serious strife as a result - when their juggling ability finally hits the wall.

craichoe

Ugh ... I just top mine up with cash before i go on Hols .. that way i dont pay any interest

Why would you use a credit card as a loan ?!???!

RandolphEsq

craichoe wrote: »

Ugh ... I just top mine up with cash before i go on Hols .. that way i dont pay any interest

Why would you use a credit card as a loan ?!???!

No beneficiary needed.

Actually I'm going on holidays soon and will effectively be using my credit card as a loan. Any advice/comments would be welcome . . .? Thanks

Cabaal

ejmaztec wrote: »

Credit card cash is for desperate people. Some individuals with several unmanageable cards juggle cash withdrawals to pay minimum payments on the others, and end up in serious strife as a result - when their juggling ability finally hits the wall.

agreed, anyone using a credit card for cash is an ejit and should get out of such a habit asap as it'll cost them alot more in the long term,

craichoe

BrightEyes wrote: »

No beneficiary needed.

Actually I'm going on holidays soon and will effectively be using my credit card as a loan. Any advice/comments would be welcome . . .? Thanks

If you dont have the money to do it then why are you going on holidays ?

If you have the money already, then why not put it on your credit card and have easy access to it ?

Bluetonic

craichoe wrote: »

If you dont have the money to do it then why are you going on holidays ?

If you have the money already, then why not put it on your credit card and have easy access to it ?

Or just simply use the credit card and put as much credit on it as you like, just pay it off before the interest kicks in.

Inadvisable to load your credit card with cash as any positive balance won't be covered by the majority of card providers if the card was defrauded. Check with your provider before preloading.

craichoe

Bluetonic wrote: »

Or just simply use the credit card and put as much credit on it as you like, just pay it off before the interest kicks in.

Inadvisable to load your credit card with cash as any positive balance won't be covered if the card was defrauded.

Nope, MBNA cover positive balance on my gold card, and i don't pay any withdrawl fees if its in credit, however if its in debit then i pay a withdrawl free of 2 euros per transaction.

NinjaTruncs

Also note that unlike purchases, when you take cash advances you are charged interest from the day you take the money out.

As for your lodging money onto a poker site, you're goign to lose money transferring in and out of the site and that could add up to 5-7%.

I'd just advise that you go to a bank if you need financial advise and not try coming up with your own ideas.

JohnCleary

Have I got something wrong here or....

1) Go spend whatever on your card
2) When your bill comes, pay it off within a certain amount of time

Simple as, right??