Credit Tips: Cash Advances With Credit Card

Posted On: December 1, 2005

Author: Justinb
Posted: Tue Jun 08, 2004 4:13 pm
Post subject: Cash Advances With Credit Card

11/27/2002 5:08 pm CDT

Why do they charge you a set charge for cash advances, then they charge you for getting the advance 40.00 per 100.00 then the Interest rate is much higher then the
Actual charge Approved rate? This sounds dumb and I feel I am going to be critisized, but is there a legitimate answer for this without sarcasm please. Thank you

Author: Verneb
Posted: Tue Jun 08, 2004 4:14 pm
Post subject: Cash Advances With Credit Card

11/27/2002 8:15 pm CDT

It sounds like you have steeper than usual cash advance fees. Unfortunately, most credit card companies have fees and higher interest for cash advances.

It didn’t used to be this way. 12-15 years ago I used to fund all my lost weekends with cash advances. I lost my shirt but never paid any fees or higher interest.

Another drawback is that if you carry a balance, the higher-interest cash advances will be paid off last - or “buried” beneath the rest of the balance. Cash Advances are to be avoided at all costs.

I prefer an ATM card with my bank or credit union if I need emergency cash.

Author: Eugeneb
Posted: Tue Jun 08, 2004 4:15 pm
Post subject: Cash Advances With Credit Card

11/27/2002 10:56 pm CDT
Cash advances cost more to you because you are the only source of profit in these transactions. With purchases, there are also merchant fees, so credit card companies don’t have to be so stingy with consumers.

Author: daveb
Posted: Tue Jun 08, 2004 4:17 pm
Post subject: Cash Advances With Credit Card

11/28/2002 2:06 am CDT

Agree with Buel. Most lenders don’t want to see too many cash advances. One of the exceptions is MBNA which sends convenience checks to cardholders twice a month. Frequently the checks have good teaser rates like 4.7. After that, you pay the same rate as you would for purchases. The cash advance fee (if you use the checks) is capped at $50. The go-to APR is usually the same as the purchase rate. If you want to use a card for cash advances, MBNA is a good card to have.