Please Explain Barclaycard Policy!

[mrs.pudding]

I took out �650 in cash from my Barclaycard last month. I always pay my BC account in full to avoid interest charges. I have just received my statement showing this cash advance plus a �16.25 handling fee. A bit steep, but I expect it's in the small print somewhere. Then they have charged me interest on that! They say it is being charged at 1.667% and then give the sum of �6.29. This seems closer to 10% to me! And why are they charging me interest on top of the handling fee when I'm not behind with the payment? Can someone explain what is going on?

[dzug]

Interest is always charged on a cash advance from the day you take it out until it is fully repaid. (So you will pay interest next months as well)
Unlike purchases, there is no interest free period. And there is always a handling fee as well.

Moral - never get cash on a credit card.

[mrs.pudding]

Absolutely! Seems like usuary to me! Many thanks

[kazza12345]

also the interest rate is quoted on a monthly figure : The annual rate will be around 20% on that figure

[Ethel]

Why don't people bother to read the small print before they sign the contracts?

ALL credit cards charge interest from day one on cash withdrawals and those ghastly credit card cheques.

The reason is quite simple. The credit card company earns at least 2% every time you use your credit card to buy something. The store that accepts your credit card payment pay it.

Barclays, and all other credit card companies, are providing a service for profit.
If they did not charge you for cash advances, stores would simply ask you to withdraw money from the nearest cashpoint to avoid these charges, perhaps offering a small discount as an incentive.

The interest rate is always very high on cash advances, at least 3% more than the standard interest rate. This applies to credit card cheques too - which in my opinion should be shredded upon receipt and never used.