Credit Card Cash Withdrawals

[Raram28]

Hello members,

 

I wanted to check with you all if you have any experience with cash withdrawals with a credit card - Kasikorn Bank.

 

I am short of money until I get paid and I am thinking of withdrawing from my Credit Card - THB30,000., to be paid fully at the end of the month with my salary.

 

I am told the interest is 3% of the amount you withdraw. Is that daily or a one time interest, does anybody know?

 

Thanks!

 

 

[Pib]

To me it's unclear if  you are saying you have a Kasikorn Bank Credit Card or you mean you are going to use another bank's credit card at a Kaiskorn Bank.

 

Either way, fees for the great majority of credit cards are pretty much the same worldwide.   That is, an upfront fee of usually 3% for the cash advance and then of X-amount interesst starts accurring  from the day of the cash advance....there is no interest free grace period assuming full end of month payment like for purchases.

 

    If you were talking a K-Bank credit card their website says a 3% cash advance fee, a 20%APR interest, and no interest free grace period for cash advances.   See this K-bank weblink.   Pretty standard fee structure for a cash advance.

Edited December 8, 2016 by Pib

[userabcd]

I have a bangkok bank credit card and when I withdrew 15000 thb from an atm I was charged a one off fee of 450 thb.

Edited December 8, 2016 by userabcd

[sanmyintmaung]

For the Kasikorn Credit cards, 3% in OP is one time cash advance fee. Also need to add 20% per annum interest start counting from withdrawal date.

 

http://www.kasikornbank.com/EN/RatesAndFees/Charges/ChargesDoc/CreditCard_16112012EN.pdf

 

I found that buying foreign currency such as US$ using Kasikorn Credit Card at Kasikorn Bank Exchange booths is not treated as cash advance.

It is treated as normal credit card purchase so interest is calculated from posting date and interest free grace period is until the due date.

 

Edited December 8, 2016 by sanmyintmaung

[spetersen]

If you pay the full amount that you owe the bank on the next bill , you usually don't pay any interest , if there is a fee I'm not sure about but it sounds reasonable only if the card is from another bank...

[TulipBulb]

24 minutes ago, spetersen said:

If you pay the full amount that you owe the bank on the next bill , you usually don't pay any interest , if there is a fee I'm not sure about but it sounds reasonable only if the card is from another bank...

 

Absolutely not the case with almost all credit cards, domestic or foreign; as has been said elsewhere above, with cash advances, interest accrues at the rate applicable to your individual card from the moment you withdraw cash from an ATM. That is typically anywhere from 16 to 25% APR. Together with the standard fee for cash withdrawal of around 3-4%, it's an expensive - though sometimes convenient or emergency - way to get cash fast.

The good news is that any repayment you make to the credit card account will first be used to pay off any cash advances, and only when that is cleared will debt for any purchases you made earlier start to be repaid.

Pay off that cash advance debt as fast as possible to avoid heavy interest payments.

[Pib]

For cash advances the rule of thumb is 3% cash advance fee (that an upfront fee) and then you pay interest beginning from day of the cash advance (no interest free grace period like for purchases).   A couple of examples shown below.

 

Quote from K-bank regarding their credit cards:

Quote

 

 Interest rates:

- Interest 20.00% per annum  

- Interest on Purchase amount is calculated from Posting Date until Repayment Date.

- Interest on Cash Advance amount is calculated from Withdrawal Date until Repayment Date.

- No interest free period for cash advance usage.

. Cash advance fee 3% of cash withdrawn, where each such withdrawal is a minimum of Baht 2,000

 

 

 

Quote from Bangkok Bank regarding their credit cards:

Quote

 

Interest Rate

• 20% per year  • Interest rate on bill payments will be calculated from the date the bank makes the payment to the outlets or service providers until the payment is repaid in full. Cardholders making all payments on time are entitled to waivers on interest.  • Interest rate on cash advances will be calculated from the withdrawal date to the date you make repayment in full.

.

Cash Advance Fee

3% of each withdrawal. Minimum withdrawal is 1,000Bt

 

 

 

 

Edited December 9, 2016 by Pib

[tutsiwarrior]

I don't unnerstand...if the OP has a 30k baht credit facility that must mean that as a foreigner he must have the same amount in the bank to cover that amount...why not just withdraw the same amount from his current account with no hassle?

[mark5335]

Not necessarily, many foreigners have unsecured credit cards based upon their work permit, and monthly salary confirmed by their employer in Thailand.

[Pib]

10 minutes ago, tutsiwarrior said:

I don't unnerstand...if the OP has a 30k baht credit facility that must mean that as a foreigner he must have the same amount in the bank to cover that amount...why not just withdraw the same amount from his current account with no hassle?

 

Maybe he has a regular credit credit card (a.k.a., unsecured) and it's not backed by any locked, collateral amount like for a "secured" credit card.

 

Plus, if he does have a secured credit card along with a locked, collateral amount that don't mean he can go tap that amount like a regular cash withdrawal from his savings account simply because it's a locked, collateral deposit for credit card use only.    

 

But whether the card is a secured or unsecured card it makes no difference regarding how fees and interest are applied.

Edited December 9, 2016 by Pib

[rct99q]

The bigger issue is when you begin to borrow on a credit card to live here in Thailand you are living on dangerous money.

It becomes a difficult cycle to break. I assume your next salary is at least 60,000 baht to pay off your card and then some left over to live on.

If your salary is a teacher salary at 30,000b then you are in some trouble.

Unless you absolutely need it for an emergency I would suggest riding it out until payday. Even it means no Christmas, parties at new year's etc.. 

Living on debt in Thailand should only be done in dire circumstances...my opinion only.

[spetersen]

4 hours ago, spetersen said:

If you pay the full amount that you owe the bank on the next bill , you usually don't pay any interest , if there is a fee I'm not sure about but it sounds reasonable only if the card is from another bank...

 

3 hours ago, TulipBulb said:

 

Absolutely not the case with almost all credit cards, domestic or foreign; as has been said elsewhere above, with cash advances, interest accrues at the rate applicable to your individual card from the moment you withdraw cash from an ATM. That is typically anywhere from 16 to 25% APR. Together with the standard fee for cash withdrawal of around 3-4%, it's an expensive - though sometimes convenient or emergency - way to get cash fast.

The good news is that any repayment you make to the credit card account will first be used to pay off any cash advances, and only when that is cleared will debt for any purchases you made earlier start to be repaid.

Pay off that cash advance debt as fast as possible to avoid heavy interest payments.

Well I don't know where are coming from but tis is not the case in Scandinavia , you don't pay any interest if you pay your bill in full , that is ...

 

 

[Pib]

Fees and rates vary from country to country due to financial laws/regulations of that country, but I think you will find in the great majority of countries card companies/banks are allowed (and do) charge a cash advance fee and on a cash advance the interest begins to immediately accrue  with no interest free grace period like for purchases.   Certainly that way in Thailand and my home country of the U.S.