How do cash advances work?

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carr99
 
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How do cash advances work?

Postby carr99 » Thu Aug 16, 2012 8:50 pm

Hello, Im a newbie Here and had a question. I have heard of getting cash advances on your credit cards.

  • How do they work?
  • How many are you allowed to do per credit card?
  • How does repaying them work?
I'm definitely a newbie :) - all answers appreciated


trumpet-205
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Postby trumpet-205 » Sat Aug 18, 2012 12:19 am

You could've Google it.

Cash advance means taking cash out of your credit card. This includes using your credit card at ATM, buying a money order with CC, etc. You have cash advance limit on top of your credit card limit, usually 10 to 25% of your credit limit. You pay it back like you would normally.

Cash advance is a terrible idea, as you pay cash advance fee (usually 5% of the cash advance amount) and interest (around 25% APR) right on the spot. No way to avoid CA interest.
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Bobzig
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Postby Bobzig » Mon Aug 20, 2012 5:53 am

You can also just walk into any bank, hand them your card and ID and say you want a cash advance for so and so amount and they run it through a machine and voila! instant money. I used to work at a bank and saw this A LOT. Bad idea unless you are desperate for cash.
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jeffysdad
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Postby jeffysdad » Mon Aug 20, 2012 6:36 am

Ditto above. However, CA is not the same as when you have a Discover card, use it at a grocery story and the clerk asks you if you want any cash. In this scenario with a Discover card, you can get cash in conjunction with a grocery purchase and it is added to the amount of your purchase and NOT treated like a cash advance. Something I didn't know but was glad to learn a while ago.
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DavidNY
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Postby DavidNY » Mon Aug 20, 2012 3:04 pm

That cash back trick with Discover (they call it "cash over") is limited to $120/day.

https://www.discover.com/credit-cards/member-benefits/cash-over-purchases.html

fantasy86dj
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Postby fantasy86dj » Thu Aug 23, 2012 3:51 pm

Avoid cash advances at all costs - they are so expensive and not worth in my opinion. I don't know about over in CA but here in Australia I remember reading that creditors that see customers taking out cash advances get flagged for things such as financial difficulty as cash advances in their eyes are last resourts.

It depends on how desperate you are for cash but I have had credit cards for the past 7 years and only cash advanced twice for $20 - never again!!

huahuafood
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Postby huahuafood » Sat Aug 25, 2012 10:59 pm

Avoid cash advances at all costs - they are so expensive and not worth in my opinion.

MoneyTalks719
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Postby MoneyTalks719 » Mon Sep 10, 2012 7:37 pm

When it comes to cash advances you start paying interest as soon as you take the money out.

kashmac123
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Postby kashmac123 » Tue Sep 18, 2012 8:10 pm

I just love me some cash...Cash Advance is good. just figure out how soon you can pay it back and take the cash when you need it.

Now I need a card that has low or no cash advance fees. Just trying to save some money.



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