Korean Job Discussion Forums

[TJ]

My wife and I have (Australian) credit cards [Visa and Mastercard] but keep a credit balance in them so we don't get charged exhorbitant interest rates for using the bank's money. It's very convenient that way.

Occasionally we need to draw out (OUR OWN) cash but we never actually use any of the bank's money. Both Visa and Mastercard have the audacity to call that a cash advance and to charge us interest on our own money.

We don't mind paying a transaction fee but being charged interest on our own money is just plain greedy.

Incidentally, they pay considerably less than 1% interest on our credit balances but charge many times that if you use their money.

Has anyone else experienced this type of warped thinking by their bank / credit card provider ?

[Mankind]

Been around forever.

You are not cash advancing your money. You are cash advancing their money. In one month when the bill comes due they pay that out of your credit in the balance. So they charge you interest for the 1 month you borrowed their money, before you paid them back with your credit.

Insurance companies are even worse with their policies.

HAND

[TJ]

I understand what the banks are doing but don't agree with it. After all, giving 0.5% interest and charging in excess of 16% is just a bit greedy. Unfortunately the only alternative is to carry more cash with me and I don't want to do that.

You may be interested to hear that, in Australia, the public became so disgusted with the fees charged by banks and the decreasing level of service that a new 'peoples bank' has started operating. It's called the Bendigo Bank, after the town where it started. As far as I know they haven't started issuing credit cards yet but, when they do, I will be their first customer.