Customers warned to avoid credit card withdrawals

www.moneynews.co.uk > Credit cards > Customers warned to avoid credit card withdrawals

Customers warned to avoid credit card withdrawals

Tue 14th Nov 2006

Credit card users have been warned in the build up to Christmas that flashing the plastic can prove to be a costly affair with the average APR on a cash withdrawal standing at 21.27 per cent according to MoneyExpert.com.

The price comparison company has found that for every withdrawal made on a credit card in the UK, an average minimum fee of £2.60 is charged.

This works out at a £2.60 fee followed by £21.82 in interest for a £100 withdrawal being charged by lenders says MoneyExpert.com and as a result, customers are urged to rethink their withdrawal habits.

Sean Gardner, MoneyExpert.com's chief executive, stated: "It's tempting to use your credit card to tide you over for some extra cash. But the advice for consumers is simple. Don't use your credit card to take out cash at an ATM. It's one of the most expensive forms of borrowing around.

"If you are withdrawing cash use your debit card. Machines from the major banks and building societies don't charge you for taking out your cash. Only use your credit card for purchases."

MoneyExpert is authorised by the Financial Services Authority and provides independent information on financial products.

Related News : Credit cards
	Brits spent less in the run-up to Christmas 2011
	Credit card spending fell in 2011
	Credit cards 'can be a useful budgeting tool'
	Credit card usage 'to rise this month'
	New measures to help Brits with finances
	Credit card spending 'less prolific in the last 12 months'
	AA Launches new reward credit card
	Borrowings 'still need to be repaid' during a gap year
	Clear information in credit agreements called for
	Brits 'focusing on zero per cent cards'