Accessing cash from a credit card

[Marley&Me]

If I need to pay something via bank cheque (or cash) and the funds are coming from a credit card, how do I go about it? The credit card is my mums and she is helping me out. We don't bank with the same bank so what would she do? Does she just go into her bank and get them to write out a cheque to the appropriate place? Is it that simple? somethings telling me it isn't....

[Rouge]

You can take cash out from a CC with a pin. At any ATM. Please be warned the interest rate is a LOT more than your regular rate. So check before hand as its a big thing to do. IYKWIM.

[Marley&Me]

Thanks Rouge, we knew it was a massive interest rate. But the funds are going back on the card in 2 weeks. It's to pay the 4 weeks in advance to the real estate, so a cheque would be better. It's a last resort unfortunately. Mum will go into the bank tomorrow and check it out I guess.

[OceanPrincess]

Does she have Internet banking? The easiest way I've found (we've done it as a last resort too so I feel your pain) is to transfer the money within your own Internet banking, from the cc to your transaction account, then it becomes like normal funds. So if she does that then they can write a bank cheque as they normally would. Hope that makes sense.

ETA: I mean within her Internet banking. ITMS.

[Marley&Me]

She doesn't have Internet banking OP. She doesn't even have a computer or smart phone LOL. But her bank is local.

[Teeki]

Ditto OP, I found it easier to do the bank cheque from a transaction account rather than straight from the card - especially as bank staff will tell you again about what's involved and are you sure you want to.

Not only is the interest rate higher, it starts from day one so there are no interest free days. It goes behind other purchases so you need to pay them off before the cash advance is repaid. Some cards also have a cash advance fee of around 2% of the cash advance amount. Just thought I'd let you know in case you weren't aware, but yeah it sucks having to do it as a last resort, we've done it too

[Marley&Me]

I think they have full credit on the card as they don't use it much. It's more an emergency card. So how much more on top of the borrowed amount would we have to pay if the money gets put back on it in a couple of weeks? If that makes sense...

[sepata]

Regarding the payment allocations, the govt brought in a rule recently where the balance earning the highest interest is what the payment goes to first, normally this is cash advances or similar types of transactions. Not all banks applied the rule to existing cards, so you would need to check whether your mums bank changed her card or not. If not you should be able to request that the payment allocations are changed in line with the govt changes, this will ensure the cash advance is paid off first.

Also keep in mind there is likely to be a cash advance fee, this could be anywhere from a couple of dollars to a percentage value of the cash advanced amount depending on your mums banks t&c. This is on top of the bank cheque fee as the bank cheque fee is separate.

Interest will be charged from the day you take the cash until that portion of balance is paid back on the card. If the payment allocations are in line with the govt changes that should just be the two weeks so take the cash advance amount, multiply by the interest percentage rate, divide by 365 then multiply by the amount of days the debt is outstanding. This should give you an idea of the interest charge.