Cash transactions on credit cards

With a wide range of credit cards to choose from consumers in the UK can enjoy finding the perfect credit card for their needs these days, with generally something for everyone.

Whether you want a credit card that will enable you to spread your repayments without paying out a fortune or whether you are looking for a credit card that will enable you to earn rewards you should have not problem finding the right card for your needs providing you have a decent credit rating.

With rewards credit cards such as cash back credit cards you can enjoy making a little back from the credit card companies in exchange for using the credit card. With low interest credit cards and balance transfer credit cards you can look forward to saving a small fortune in interest on the cost of your borrowing.

However, one thing that you do need to remember is that if you use your credit card for cash transactions you will not get to enjoy the rewards and benefits that your credit card has to offer.

No matter what type of credit card you have, whether it is an interest free credit card, a rewards based card, a charity credit card, or any other type of credit card, you will find that making cash transactions on your card can prove extremely costly. Not only will you not earn rewards or cash back on cash transactions but you will also incur hefty charges, all of which an add up and make your credit card an expensive financial tool.

In the past most people assumed cash transactions meant cash withdrawals, but these days there are a number of transactions that come under the umbrella of cash transactions. Over the past year credit card companies have expanded the definition of cash transactions, and consumers need to make themselves aware of what is and is not classed as a cash transaction, as this will enable them to determine what sort of transactions they should and should not conduct on their credit cards.

The fees charges on cash transactions on credit cards can be very high, and this makes it all the more important to avoid making this type of transaction wherever possible. If you withdraw cash on your credit card you will be charged interest in addition to incurring hefty withdrawal charges, and the cost of cash withdrawals may be even higher if you take money out whilst you are abroad. However, there are also other transactions that are classed as cash transactions, and which can mean losing out on rewards or being charges interest even if you have a 0% purchase credit card, as cash transactions do not come under the 0% deal. Amongst the type of transactions classed as cash transactions are:

• Making bill payments on your credit card
• Transferring money from your credit card
• Purchasing gift card or vouchers on your credit card
• Using your credit card for online gambling
• Using your credit card to take money out from a cash point machine
  

Using your credit card for any type of cash transaction can prove costly, and therefore cash transactions should be avoided wherever possible. However, there are times when cash transactions may be necessary, such as having to withdraw cash on your credit card in an emergency, and in these cases you should make sure that you are fully aware of the charges and interest imposed.

More information:

• High Cost Credit – Types To Avoid
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• Credit Card Charges
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• Making Credit Card Fees Easier To Understand
  On average, UK credit card issuers make somewhere between £300 and £400 million a year in fees charged off of UK credit card users who have not fully understood how the credit card issuer has arranged the charging of their fees and who do not complain directly to the card issuer for any excessive or incorrect fee charges. In anyone’s language, this is a staggering amount of money!
• How To Avoid Paying Those Pesky Credit And Debit Card Fees
  It seems that UK credit and debit card providers would like to charge us each and every time we use our plastic cards these days. While the charge for each separate individual transaction may not seem like much, add them up over a month or two and suddenly the amount has some value. So, how do we avoid having to pay pesky fees to UK credit and debit card providers?