Should I use cash advance to pay off other credit cards?

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paulB
 
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Should I use cash advance to pay off other credit cards?

Postby paulB » Thu Mar 28, 2013 11:13 am

I've got 2 credit cards that are close to maxed out balance... not a big balance but makes it a bit hard trying to pay it off with APR charges on top.

Would it make sense for me to open a credit card that offers 0% APR on cash advance for x amount of time, use that cash to pay off my 2 credit cards and enjoy paying the balance off without additional charges for whatever time it's being offered?

I've got a few friends that did this and it seems to be working for them.
Any suggestions or ideas?

And if so, which bank/car is the best today to do this?

Thanks!


Sevenfeet
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Postby Sevenfeet » Thu Mar 28, 2013 12:45 pm

I suppose you could but 0% on cash advanced is almost unheard of in the credit cad industry. Most cash advances come with serious interest rates (25% or more) and sometimes fees on top of that.
Cards:
American Express Platinum (NPSL)
Penfed Platinum Reward Visa ($28K)
Chase Freedom Visa ($25K)
Fidelity American Express ($20K)
American Express Blue Cash Preferred ($20K)
Bank of America Cash Rewards MasterCard ($20K)
Citi Thank You Preferred Visa ($9.5K)
Chase Sapphire Preferred ($7.5K)
US Bank Cash + Visa Signature ($7K)
Discover IT ($4K)

s.jessica
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Postby s.jessica » Thu Mar 28, 2013 5:35 pm

Cash advances are never a good deal. You can use a balance transfer which is most likely what your friends did. If you qualify for Chase Slate, that is what the card is good for, transferring balances from high interest cards.

MemberSince99
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Postby MemberSince99 » Thu Mar 28, 2013 5:41 pm

HELL no. They count on you not paying it off within the 0% period to make money, you know. Don't do it.

Sevenfeet
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Postby Sevenfeet » Thu Mar 28, 2013 5:57 pm

MemberSince99 wrote:HELL no. They count on you not paying it off within the 0% period to make money, you know. Don't do it.


It is true...part of the math of balance transfers is that some people just won't do it and then the bank sees interest payments down the road. This happened to me and my wife when we balance transferred from Chase to BofA when I first got their card in 2008. It might have made sense if we had discipline about paying it down but we didn't and as a result, the balance transfer amount stuck around like herpes for the next four years until we balance transferred it again to Penfed. This time are not making the same mistake twice. We've already begun paying Penfed and we've budgeted how we pay it down month by month for the duration of the 0% period.
Cards:

American Express Platinum (NPSL)

Penfed Platinum Reward Visa ($28K)

Chase Freedom Visa ($25K)

Fidelity American Express ($20K)

American Express Blue Cash Preferred ($20K)

Bank of America Cash Rewards MasterCard ($20K)

Citi Thank You Preferred Visa ($9.5K)

Chase Sapphire Preferred ($7.5K)

US Bank Cash + Visa Signature ($7K)

Discover IT ($4K)

DavidNY
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Postby DavidNY » Thu Mar 28, 2013 10:33 pm

You don't want a cash advance, you want a balance transfer. Try Chase Slate.

Daniel
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Postby Daniel » Fri Mar 29, 2013 11:19 am

DavidNY wrote:You don't want a cash advance, you want a balance transfer. Try Chase Slate.


Discover It is a 14m card that is easier to get approved for based on what I have read. Does anyone have the ability to confirm this?

nishant
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Location: Chicago

Postby nishant » Fri Mar 29, 2013 3:44 pm

If you are not able to pay off credit card balances then balance transfer with paying 3% to 5% fee does not make sense. After few months, you will run into same situation.

If possible, try alternate loans like Home equity loan which comes with lowest interest or credit union short term loan to pay off the balance which have much lower interest than credit card cash advance fees

tobin
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Postby tobin » Sat Mar 30, 2013 11:32 am

balance transfer is your best bet..Say no to cash advances.



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