What are cash advances on a credit card & how do they work?

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
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Shanita
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What are cash advances on a credit card & how do they work?

Postby Shanita » Tue Sep 17, 2013 3:04 pm

I just got my first credit card (Cap one) in the mail, it says I have $250 cash advance limit which is part of my credit line. What does this mean? Does it mean I could obtain cash from an atm? I'm confused. Any help would be appreciated. :confused: :confused:


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otter
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Postby otter » Tue Sep 17, 2013 5:19 pm

Yes you can get a cash advance, but you want to avoid doing so because there is no grace period for interest the interest starts right away and the APR is higher for a cash advance than for a purchase with many cards.

So it's nice to know you can in a dire emergency, BUT it should be avoided and used ONLY if you have no other options.
In my Wallet:
  • Amex PRG NPSL[3-14, bd 91]
  • Sallie Mae MC $8000[1-14]
  • Chase Freedom $4700[1-14]
  • Discover It $2750[8-13]
  • BoA UCF Alumni Cash Rewards $5000 [3-15]
Sometimes in my Wallet:
  • GM BuyPower WEMC $5000[9-14]
  • Wells Fargo Propel 365 Amex $7000[4-14]
  • Barclaycard Arrival WEMC $7000[3-14]
  • BoA Better Balance $3000[2-15]
In my sockdrawer: Amex BCE $1000[10-13, bd 91], OCCU Duck $10000 [11-13], The Sportsman's Guide Visa $8000[8-14], Chase Slate $4000 [9-14]Delta Gold Amex $2000 [2-15 bd 91], Diners Club MC $20000 [10-14] Commerce Bank Visa $2000 [3-15] Citi Double Cash $1000 [3-15]
Total CL: $90450

Obi-dan
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Postby Obi-dan » Wed Sep 18, 2013 9:40 am

Agree with Otter, avoid at all costs. This is one step above payday lending.

However, there are three ways it can be done: 1) at an ATM but the card issuer will need to give you a pin. 3) A bank can do it for you 4) a check cashing place can do it.
Cards:
Chase Sapphire Preferred
Marriott Rewards
Citi Hilton
Barclay Arrival
AMEX BCE (member since 95)
Chase Freedom
Discover It
Wells Fargo Platinum
Barclaycard (Apple)
Local Credit Union Visa (buy local!)


FICO Scores:
TU: 824 (Aug 2014)
Experian: 789 (Aug 2014)
Equifax: 807 (Aug 2014)

takeshi
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Postby takeshi » Wed Sep 18, 2013 10:21 am

otter wrote:Yes you can get a cash advance, but you want to avoid doing so because there is no grace period for interest the interest starts right away and the APR is higher for a cash advance than for a purchase with many cards.

...and some cards charge a fee for each cash advance on top of that.

Shanita
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Postby Shanita » Wed Sep 18, 2013 10:59 am

Good to know! I won't use Cash Advance, I'd rather stay away. Thank you!

Dman316
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Postby Dman316 » Mon Jun 02, 2014 5:06 am

Shanita wrote:Good to know! I won't use Cash Advance, I'd rather stay away. Thank you!


Yes, avoid it like the plague.
My Cards

Chase Freedom Visa Signature: $5.2K
Capital One Quicksilver Visa: $7.5K
Discover IT: $5.5K
Huntington Voice World Mastercard: $1.6K

In the garden indefinitely.



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