What is the Finance Charge for a Credit Card Cash Advance
Author: jojo14
Posted: Sat Jul 15, 2006 11:51 am
Post subject: What is the charge on this cash advance
Hi,
I need to take a $1000 cash advance on my CC. The rate for cash is 23%. I will be able to pay this off in 30 days.
Do you have a guess as to what the finance charge would be because I believe it works differently than on standard purchases.
Thanks a lot.
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Author: credithelp
Posted: Sat Jul 15, 2006 1:31 pm
Post subject:
Carrying it for 30 days they will probably charge something like $20 for the interest charges and $30 for the cash advance fee if it has one.
Author: Brammy
Posted: Sat Jul 15, 2006 3:29 pm
Post subject: What is the Finance Charge for a Credit Card Cash Advance
Yep I come up just shy of 19.00 plus whatever the cash advance fee is but remember, you'll also pay interest on that fee ad all payments are applied to purchases with lower APR first.
So say you already have 1000.00 in purchases on said card, you pay 1000.00 when the bill is due and not one dime will go toward the cash advance. Your payments won't hit that one until everything else is paid off and in the meantime, you'll continue to accrue that ridiculous interest rate on the advance and the finance charge itself.
Author: jojo14
Posted: Tue Oct 31, 2006 3:51 am
Post subject:
Thanks for the help. Just curious...How are your figuring this out? Is there a simple formula or a calculator for determining the true cost of a cash advance.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Brammy
Posted: Tue Oct 31, 2006 6:22 am
Post subject: What is the Finance Charge for a Credit Card Cash Advance
APR(.23)/365= daily interest charged
daily interest charged*1000 (amount of charge)=interest charged daily
interest charged daily * 30
.23/365 =6.301-4 truncated
.0006301*1000 = .6301
.6301*30 = 18.903
Author: Board Monitor
Posted: Tue Oct 31, 2006 11:42 am
Post subject: What is the Finance Charge for a Credit Card Cash Advance
Nice math Brammy. Like how you showed your work!
_________________
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Curtis Arnold
Board Monitor
http://www.CardRatings.com
20K+ Credit Card Reviews
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Sat Jul 15, 2006 11:51 am
Post subject: What is the charge on this cash advance
Hi,
I need to take a $1000 cash advance on my CC. The rate for cash is 23%. I will be able to pay this off in 30 days.
Do you have a guess as to what the finance charge would be because I believe it works differently than on standard purchases.
Thanks a lot.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: credithelp
Posted: Sat Jul 15, 2006 1:31 pm
Post subject:
Carrying it for 30 days they will probably charge something like $20 for the interest charges and $30 for the cash advance fee if it has one.
Author: Brammy
Posted: Sat Jul 15, 2006 3:29 pm
Post subject: What is the Finance Charge for a Credit Card Cash Advance
Yep I come up just shy of 19.00 plus whatever the cash advance fee is but remember, you'll also pay interest on that fee ad all payments are applied to purchases with lower APR first.
So say you already have 1000.00 in purchases on said card, you pay 1000.00 when the bill is due and not one dime will go toward the cash advance. Your payments won't hit that one until everything else is paid off and in the meantime, you'll continue to accrue that ridiculous interest rate on the advance and the finance charge itself.
Author: jojo14
Posted: Tue Oct 31, 2006 3:51 am
Post subject:
Thanks for the help. Just curious...How are your figuring this out? Is there a simple formula or a calculator for determining the true cost of a cash advance.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Brammy
Posted: Tue Oct 31, 2006 6:22 am
Post subject: What is the Finance Charge for a Credit Card Cash Advance
APR(.23)/365= daily interest charged
daily interest charged*1000 (amount of charge)=interest charged daily
interest charged daily * 30
.23/365 =6.301-4 truncated
.0006301*1000 = .6301
.6301*30 = 18.903
Author: Board Monitor
Posted: Tue Oct 31, 2006 11:42 am
Post subject: What is the Finance Charge for a Credit Card Cash Advance
Nice math Brammy. Like how you showed your work!
_________________
Regards,
Curtis Arnold
Board Monitor
http://www.CardRatings.com
20K+ Credit Card Reviews
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 5:36 PM
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