Worried about paying your mortgage? We have various ways that we can help you.
Taking a detailed look at using credit cards to withdraw cash.
If you need to, you can use most credit cards to withdraw money from a cashpoint. We call this a cash transaction. It’s usually one of the more expensive ways to borrow money on your credit card, so we recommend doing this only in emergencies.
With a card purchase, you won’t pay interest for a period if you pay your statement in full each month. Whereas, you’ll pay interest on a cash transaction as soon as your credit card provider adds the transaction to your account.
Before you make any cash withdrawal, check your statement or your card’s terms and conditions to make sure you’re happy with what your interest rate will be.
Every time you make a cash transaction, you will likely pay a fee. This fee can have a fixed minimum amount and may be up to 5% of the money you withdraw, depending on your credit card and provider.
As cash transactions can incur more interest and fees than other transactions, credit card providers usually protect you by limiting the amount of cash you can withdraw. At Lloyds Bank, the daily ATM limit is set at £500, but this may vary between credit card providers.
No. Once you’ve withdrawn cash using your credit card, that cash is no longer protected by Section 75 of the Consumer Credit Act 1974.
If protection is important to you, then consider making the purchase using your credit card instead.