How do credit cards with a cash advance option work?
Guest: shan
Post subject: How do credit cards with a cash advance option work?
Posted: Wed Aug 16, 2006 5:28 pm
Can someone explain how cash advance checks work please? I have a BofA/MBNA card and want to deposit the check into my BofA checking acct, then use some of the money to pay that card and my other BofA card. I know that you can't use it to directly pay a card with them, but can you make it out to yourself and then pay them? Will they track that through my checking acct? Also, it is 0% APR for a year, but 3% fee which is labeled as a finance charge. Will that finance charge compound if I carry a balance? If so, can I pay the finance charge seperate from the balance? Thanks for your help!
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Guest: fire3000
Credit Expert (100+ Posts)
Posted: Wed Aug 16, 2006 7:30 pm
They send me those convenience check frequently. When I decide to use one, I make the check out to myself and deposit it into a checking account other than my BoA account or to my HELOC lender (Wachovia). If it is a BT offer only, the check must be written out to one of your creditors. If there is a fee charged, it will be added to your balance at the start of your next statment. Regular rates may be accessed on the fee and you can not pay the fee off until the rest of the balance is paid off. The fee is a one time charge and if you carry a balance the stated low rate will apply to the amount of the check used. Purchases made before or after the check is used are charged the regular purchase rate unless the offer states otherwise. If your payments are on time and your credit reports stay positive, they will not rate jack until the end of the low rate period or until the check amount is fully paid as stated in the offer.
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Guest: multiplierx
Posted: Wed Aug 16, 2006 7:36 pm
That's the catch with BTs. The fee will accrue interest while the 0% is paid off. You can't seperate the charges.
The only true 0% BT is 0 fee.
_________________
Total interest paid on cards = 0.00
Amount of cash/rewards in past year = $550
Utilization - less than 1%
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: shan
Posted: Wed Aug 16, 2006 11:54 pm
Ok, thanks. I figured there was a catch with that fee.
So, it's best not to deposit into my BOA acct then? I was thinking of opening Citi checking and e-savings accts anyway. I guess I can use those.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Post subject: How do credit cards with a cash advance option work?
Posted: Wed Aug 16, 2006 5:28 pm
Can someone explain how cash advance checks work please? I have a BofA/MBNA card and want to deposit the check into my BofA checking acct, then use some of the money to pay that card and my other BofA card. I know that you can't use it to directly pay a card with them, but can you make it out to yourself and then pay them? Will they track that through my checking acct? Also, it is 0% APR for a year, but 3% fee which is labeled as a finance charge. Will that finance charge compound if I carry a balance? If so, can I pay the finance charge seperate from the balance? Thanks for your help!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: fire3000
Credit Expert (100+ Posts)
Posted: Wed Aug 16, 2006 7:30 pm
They send me those convenience check frequently. When I decide to use one, I make the check out to myself and deposit it into a checking account other than my BoA account or to my HELOC lender (Wachovia). If it is a BT offer only, the check must be written out to one of your creditors. If there is a fee charged, it will be added to your balance at the start of your next statment. Regular rates may be accessed on the fee and you can not pay the fee off until the rest of the balance is paid off. The fee is a one time charge and if you carry a balance the stated low rate will apply to the amount of the check used. Purchases made before or after the check is used are charged the regular purchase rate unless the offer states otherwise. If your payments are on time and your credit reports stay positive, they will not rate jack until the end of the low rate period or until the check amount is fully paid as stated in the offer.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: multiplierx
Posted: Wed Aug 16, 2006 7:36 pm
That's the catch with BTs. The fee will accrue interest while the 0% is paid off. You can't seperate the charges.
The only true 0% BT is 0 fee.
_________________
Total interest paid on cards = 0.00
Amount of cash/rewards in past year = $550
Utilization - less than 1%
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: shan
Posted: Wed Aug 16, 2006 11:54 pm
Ok, thanks. I figured there was a catch with that fee.
So, it's best not to deposit into my BOA acct then? I was thinking of opening Citi checking and e-savings accts anyway. I guess I can use those.
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 2:50 PM
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