Withdrawing Cash on Credit card then using it to pay minimum
Discussion
CraigNewmarket said:
Morning goatee wearing company directors of PH!
If my credit card balance is 1000 and the min payment is 100 and I withdraw 100 from the card then use the 100 to pay the minimum then pay 100 from my own account so the end balance would be 900 am I getting a lower interest rate? No
Would this make financial sense? No
Regards,
Craig
Current Balance: £1000If my credit card balance is 1000 and the min payment is 100 and I withdraw 100 from the card then use the 100 to pay the minimum then pay 100 from my own account so the end balance would be 900 am I getting a lower interest rate? No
Would this make financial sense? No
Regards,
Craig
Min Payment: £100
Withdrawing £100 in cash increases your balance to £1100 and you'll also have interest and for the withdrawal (charged from the day you take it out, not the end of the month. It's different for cash vs purchases).
When you pay off this £100 PLUS the other £100 you say you have, your balance would be £900 plus any charges for the withdrawal. Had you just paid the £100 without taking any cash out, your balance would be £900 without any additional charges.
Don't withdraw the cash. There is no benefit.
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