Credit cards and interest on cash

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Q. How long can a credit card company charge me for a cash advance? I normally never use my credit card for cash because I know they charge daily but I was caught short recently and the only card that would work was my credit card. I withdrew €500 which I have since paid back. My problem is I have an outstanding balance of around €2,000 on my card and want to make sure I’m not paying for the cash advance.

Linda, Dublin 14

One Response to Credit cards and interest on cash

  1. rteproduction says:

    Dear Linda,

    Thanks for your question. We spoke to the National Consumer Agency about this and they told us credit card companies continue to charge for cash advances until the outstanding balance is cleared.

    Using a credit card for cash is the most expensive way to get cash. You are not only charged from the day of the transaction, but you are generally charged at a higher rate.

    So if your maximum credit card outstanding balance was €2,500, it is likely your credit card company will charge you €500 of that at the higher "cash" interest rate until you get your debt down to below €500. But the best thing is to phone your credit company and ask them what their policy is.

    RTE Money

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