ME Bank Frank Credit Card - Cash Advance

Lpoodles on 26/06/2015 - 00:17

Hi there,

I recently read the following comment on a ozbargain thread with regards to the ME Bank Credit Card:

"Their interest rate is 9.9% on cash withdrawals, so this is one of the lowest-interest personal loans you can get at short notice. If you can pay off the debt within one year then that's only $500 interest you've paid. If you can pay it off in two years then it's more like $800. AFAIK this is one of the best cards in the market as their 9.9% rate applies to everything - balance transfers, cash withdrawals, and purchases."

So let's say if I were to withdrawal $5000 from an approved ATM in cash using the ME Bank Credit Card, and if I make the right and sufficient repayment each month to pay all the debt in exactly one year, does that I mean I only pay $500 in interest? Can I withdrawal cash from an ATM using ME Bank Credit Card?

I'm not familiar with credit cards, so any advice will be greatly appreciated.

Thank you.

Financial

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Comments

  • holdenmg on 26/06/2015 - 01:00

    5000*(9.9/100) is 495.

  • nocure on 26/06/2015 - 08:31

    Also need to factor in that the interest is added to the principal monthly.

    • poodles on 26/06/2015 - 11:41

      so how much do i pay altogether if i pay the debt in one year

      • Agarwal on 26/06/2015 - 12:19
        +2

        Difficult to say exactly depending on the date you pay and if you pay the roughly $450 per month over the 12 months or pay different amounts each month. But say you took out the $5000, you will get charged interest on that the first month and added on, so you'd be owing slightly more than $5000 so you pay interest on that as well. But it would be only a slight amount, you wouldn't end up paying much more than $500 for the year. Edit: If you're paying a fair bit off each month you might even end up paying less than $500 because your balance is reducing so much.

        Although you most likely wouldn't be able to withdraw $5000 from an ATM in one go, you would need to do it over a few withdrawals, and probably pay a cash advance fee for each one.

      • nocure on 26/06/2015 - 12:23

        $513.84

  • spackbace on 26/06/2015 - 12:11
    +2

    http://www.citibank.com.au/aus/lending/loans_readycredit.htm

    Look to Citibank if you want low interest short-term loan

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