Skip to main content

Credit Card Cash Advances

Cash Advances on Credit Cards

Cash Advances do not get Float or Grace period. If you take a cash advance on your Credit Card interest will start being calculated the day the cash advance is processed. You will not get the float or the grace period on the cash advance and some card issuers will not give you float or a grace period on other charges you made after the cash advance.

Cash Advance Special Promotions

Sometimes in special promotions you can get a cash advance with zero interest. However there is always a "processing fee" usually of 3% or $5 whichever is larger. The interest free period on most of the zero interest promotions will be 12 to 18 months.

However with most of these offers if you miss a payment your rate will jump to your normal rate on this card of 16-25 percent.

My History with Zero Interest Credit Card Offers

I used to buy inventory for my business with credit cards. I would often get Zero Interest offers from some of my cards.

Usually they had a two or three percent upfront charge when you use their checks. 

Often if you just spent the money on the credit card there is no upfront fee.
I would keep the offer in the file with that particular credit card to make sure I got the free interest for the full term of the offer.

Autopay is great for never missing a Payment

I would make sure the card had Autopay setup for the minimum payment.


Usually my account was suppose to get 14 to 18 months of Zero interest. 

Several times the credit card company started charging interest before the free interest period was scheduled to end. I believe this was intentional.

 I called the bank and reminded them of the terms of their offer. I was always very nice to the customer service and I would tell them the date I received the offer and the date I used it. They always corrected their error.

Cash Advances on your Debit Card vs Credit Card

With a Debit Card the money will come directly out of your checking account. With the Credit Card Cash advance you are borrowing money.  You will start paying interest on you Credit Card Cash advance as soon as the money is transferred into your account.


Your Credit Score after a Large Credit Card Cash Advance

I have maxed out one of my credit cards after getting a zero interest offer.  Even though the rest of my cards had less than 5% in spending on them this one card that was maxed out would severely ding my credit score.
Labels:

Comments

Post a Comment

Popular posts from this blog

New Account Notification

I have four different Free ways to be notified of a new account being opened in my name on my Social Security number.  This is the critical notification that your Identity is being stolen if you did not just open a new credit line. My Discover card, Credit Karma, Chase Bank, and Credit Sesame accounts all notify me if there has been a new account opened in my name with my Social Security number.   New Credit Account I recently opened a new Home Depot* credit card.  You know those Black Friday tool sales sucked me in again.  I do it almost every year.   Anyway right on time the next day and the day after I opened a new account I was notified by Credit Karma, Discover, Chase Bank, and Credit Sessame. Why This is Important Any time your credit is checked you need to be notified.  If you did not apply for new credit it is likely to mean someone is attempting to STEAL Your Identity.   The first step in Identity Theft is for the thief to apply...
Post a Comment
Read more

What Caused My Credit Score to Drop?

The most common reasons for a credit score drop is a missed payment, a new line of credit, a credit card removed, or an increased use of your credit.    A missed payment will have a significant and lasting effect on your credit score.  I had an 810 credit score and I missed a payment on my Lowes card.  I did not realize I had a bill with them.  The bill was under $50. I realized I had not made the payment when it showed up as a negative on my Credit Karma credit score.  It dropped my well aged with over 800 credit score by over 90 points.  Check this article on how I was able to get the Lowes negative removed.???** A new line of credit like a new credit card will lower your credit score.  Depending on how much credit history you have, a new line of credit will lower your score by ten to thirty points.  Increasing your debt with a major purchase on your credit card or a new car loan, will also lower your credit score.  A friend of mine ...
Post a Comment
Read more

Bank Fees and How to Avoid Them

I hate to pay fees. Little fees, big fees, they all irritate me. In the old days of checking accounts where local companies all accepted checks, banks used to charge $15 to $25 on bounced checks. In my area of Montana they made enough in Bad Check fees to pay all of their full time tellers.  A friend who was a banker told me this. Fees are a huge revenue source for banks. I try to avoid most bank fees. My checking account is does not have a monthly fee. My savings account does not have a yearly fee.   I do have an annual fee on my lines of credit, HELOCs, but I have not been able to talk my banker out of those fees. Debit Cards Fees will grow quickly if you don't pay attention. Debit card fees can vary depending on the bank or financial institution you use, as well as the type of account and the transaction type. Here are some common fees associated with debit card usage: ATM withdrawal fees : When you use an ATM that is not owned by your bank or financial institutio...
Post a Comment
Read more