Cash Advance ???

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OHIO
 
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Cash Advance ???

Postby OHIO » Sun Nov 09, 2014 7:50 am

Hello All,

I was wondering if I took a cash advance every month to pay my rent and then paid off at the end of every month if I would still have to pay the fees?

The goal is to get the points every month and not pay the cash advance fees.

Is this possible?

Thanks.


whit
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Postby whit » Sun Nov 09, 2014 11:36 am

Yes,
There could be a fee for taking the cash advance
Alongside the fact that most cash advance apr is immediate (same as if you used it as an overdraft for your checking account for overdraft apr), and most cases it's higher than the purchase apr and, this won't apply to you because you would be planning to pay it off at the statement day but for those who let balances carry

The payment amount is applied to minimum only first, than anything left over goes to the balance with the higher apr, before applying to the lower apr

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CarefulBuilder14
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Postby CarefulBuilder14 » Sun Nov 09, 2014 11:42 am

I can't answer with 100% certainty as you don't specify the card, but I expect you would have to pay interest starting on the day you take the cash advance. Here's how it works according to the T&C on my Freedom (a very popular card):

"We will not charge you interest on purchases if you pay your entire balance by the due date each month. We will begin charging interest (23.00% APR) on balance transfers, cash advances, and overdraft advances on the transaction date."

You're smart to ask about it first, because actually doing it would most likely be a really dumb thing to do.

I don't see anything in the terms that explicitly says cash advances don't earn rewards - but every mention of rewards on the Chase website is clearly referring to purchases (and not balance transfers, cash advances, or overdraft advances).
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PlyrStar93
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Postby PlyrStar93 » Sun Nov 09, 2014 12:02 pm

OHIO wrote:I was wondering if I took a cash advance every month to pay my rent and then paid off at the end of every month if I would still have to pay the fees?

You will have to pay the cash advance fees according to the terms of your card for each single cash advance.

Also just as CarefulBuilder14 said, there is no grace period for cash advance. Interest will be charged from the first day with generally higher-than-purchase APR. That means even if you pay in full each month, you are still paying interest on cash advances.

OHIO wrote:The goal is to get the points every month and not pay the cash advance fees.

I believe there isn't any card that gives reward on transactions posted as cash advances. At least for whatever I have seen, they only give rewards on purchases.

Even if they did give rewards on cash advances, the interest and fees can effectively offset the rewards gained. Based on the fact banks won't give rewards actually, just forget about it.
Citi Forward Visa $5000 10/2012 | American Express Blue Cash Everyday $8000 2/2014 | Discover it $7000 5/2014
Chase Freedom Visa Signature $7000 6/2014 | Citi ThankYou Premier Visa Signature $5000 1/2015
All EMV.

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otter
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Postby otter » Sun Nov 09, 2014 6:49 pm

PlyrStar93 wrote:You will have to pay the cash advance fees according to the terms of your card for each single cash advance.

Also just as CarefulBuilder14 said, there is no grace period for cash advance. Interest will be charged from the first day with generally higher-than-purchase APR. That means even if you pay in full each month, you are still paying interest on cash advances.


I believe there isn't any card that gives reward on transactions posted as cash advances. At least for whatever I have seen, they only give rewards on purchases.

Even if they did give rewards on cash advances, the interest and fees can effectively offset the rewards gained. Based on the fact banks won't give rewards actually, just forget about it.


+1
Cash advances are an all around bad move. I had to do one a few months back to pay for deposit/first month's rent (I hadn't expected to rent an apartment so close after moving since my employer was paying for my hotel, but I found a good deal in a large apartment which allowed pets so I went for it). I had the money but the banks were closed and I couldn't withdrawal that much from an ATM and the landlord wouldn't take a check. So I had only one option. I paid it back the next day and still got hit with a cash advance fee, interest and residual interest for a couple of months (it was a card with a 0% on purchases APR so I was revolving a balance).

I guess I don't regret it since I still save a few hundred a month compared to other apartments which allow a dog (and giving up my pup was unthinkable), but it's something you should do only as a last resort.
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

OHIO
 
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Postby OHIO » Mon Nov 10, 2014 6:07 pm

Thanks for the replies.



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