What is Cash Advance APR? The Next CEO of Stack OverflowDoes APR also depends on credit score?Soft Loan using a 0% APR credit CardIf I take out a cash advance, how exactly do I get charged and does it hurt my credit?What does APR mean I'm paying?Cash Advance causes recurring interest fee after paid in fullSigning up for a credit card to pay tax debt - pitfalls of 0% APR for the first year?Cash advance on a credit card with a credit balanceIs it possible for me to keep my credit card APR at 0% permanently?Why do card processing companies discourage “cash advance” activitiesBalance transfer fee
How exploitable/balanced is this homebrew spell: Spell Permanency?
Can a PhD from a non-TU9 German university become a professor in a TU9 university?
A hang glider, sudden unexpected lift to 25,000 feet altitude, what could do this?
Gödel's incompleteness theorems - what are the religious implications?
Small nick on power cord from an electric alarm clock, and copper wiring exposed but intact
Find the majority element, which appears more than half the time
Is the offspring between a demon and a celestial possible? If so what is it called and is it in a book somewhere?
Finitely generated matrix groups whose eigenvalues are all algebraic
Strange use of "whether ... than ..." in official text
logical reads on global temp table, but not on session-level temp table
Can I hook these wires up to find the connection to a dead outlet?
How can I prove that a state of equilibrium is unstable?
Calculate the Mean mean of two numbers
How did scripture get the name bible?
How can I separate the number from the unit in argument?
Could a dragon use its wings to swim?
How dangerous is XSS
Planeswalker Ability and Death Timing
Find a path from s to t using as few red nodes as possible
Incomplete cube
Identify and count spells (Distinctive events within each group)
What does this strange code stamp on my passport mean?
What steps are necessary to read a Modern SSD in Medieval Europe?
How badly should I try to prevent a user from XSSing themselves?
What is Cash Advance APR?
The Next CEO of Stack OverflowDoes APR also depends on credit score?Soft Loan using a 0% APR credit CardIf I take out a cash advance, how exactly do I get charged and does it hurt my credit?What does APR mean I'm paying?Cash Advance causes recurring interest fee after paid in fullSigning up for a credit card to pay tax debt - pitfalls of 0% APR for the first year?Cash advance on a credit card with a credit balanceIs it possible for me to keep my credit card APR at 0% permanently?Why do card processing companies discourage “cash advance” activitiesBalance transfer fee
I just got my first credit card. I haven't spent anything on it but I see that the Cash Advance APR is 27.5%.
Can someone tell me in layman terms what this means?
credit-card apr
asked Mar 21 at 20:02
RajRaj
10116
add a comment |
I just got my first credit card. I haven't spent anything on it but I see that the Cash Advance APR is 27.5%.
Can someone tell me in layman terms what this means?
credit-card apr
asked Mar 21 at 20:02
RajRaj
10116
1
Some credit cards also supply checks as well that can be used to draw a Cash Advance on the card. My American Express card sends me such checks about twice a year in the mail, which I promptly shred. They're covered in marketing promotion to make them seem like a better deal than normal Cash Advances, but I added up their delayed interest totals and the dates and the fee to use the check, and it turned out to be exactly the same APR rate for 1 month, and worse if left more time unpaid. I'm of Quid's opinion that such advances should simply never be used.
– Davy M
Mar 23 at 23:45
add a comment |
I just got my first credit card. I haven't spent anything on it but I see that the Cash Advance APR is 27.5%.
Can someone tell me in layman terms what this means?
credit-card apr
asked Mar 21 at 20:02
RajRaj
10116
I just got my first credit card. I haven't spent anything on it but I see that the Cash Advance APR is 27.5%.
Can someone tell me in layman terms what this means?
credit-card apr
credit-card apr
asked Mar 21 at 20:02
RajRaj
10116
asked Mar 21 at 20:02
RajRaj
10116
asked Mar 21 at 20:02
RajRaj
10116
asked Mar 21 at 20:02
RajRaj
10116
asked Mar 21 at 20:02
RajRaj
10116
10116
1
Some credit cards also supply checks as well that can be used to draw a Cash Advance on the card. My American Express card sends me such checks about twice a year in the mail, which I promptly shred. They're covered in marketing promotion to make them seem like a better deal than normal Cash Advances, but I added up their delayed interest totals and the dates and the fee to use the check, and it turned out to be exactly the same APR rate for 1 month, and worse if left more time unpaid. I'm of Quid's opinion that such advances should simply never be used.
– Davy M
Mar 23 at 23:45
add a comment |
1
Some credit cards also supply checks as well that can be used to draw a Cash Advance on the card. My American Express card sends me such checks about twice a year in the mail, which I promptly shred. They're covered in marketing promotion to make them seem like a better deal than normal Cash Advances, but I added up their delayed interest totals and the dates and the fee to use the check, and it turned out to be exactly the same APR rate for 1 month, and worse if left more time unpaid. I'm of Quid's opinion that such advances should simply never be used.
– Davy M
Mar 23 at 23:45
1
1
Some credit cards also supply checks as well that can be used to draw a Cash Advance on the card. My American Express card sends me such checks about twice a year in the mail, which I promptly shred. They're covered in marketing promotion to make them seem like a better deal than normal Cash Advances, but I added up their delayed interest totals and the dates and the fee to use the check, and it turned out to be exactly the same APR rate for 1 month, and worse if left more time unpaid. I'm of Quid's opinion that such advances should simply never be used.
– Davy M
Mar 23 at 23:45
Some credit cards also supply checks as well that can be used to draw a Cash Advance on the card. My American Express card sends me such checks about twice a year in the mail, which I promptly shred. They're covered in marketing promotion to make them seem like a better deal than normal Cash Advances, but I added up their delayed interest totals and the dates and the fee to use the check, and it turned out to be exactly the same APR rate for 1 month, and worse if left more time unpaid. I'm of Quid's opinion that such advances should simply never be used.
– Davy M
Mar 23 at 23:45
add a comment |
2 Answers
2
active
oldest
votes
A "cash advance" is when you use your credit card in such a way that you receive cash. For example, if you use your credit card in an ATM machine and receive cash.
You should never ever use your credit card for a cash advance.
answered Mar 21 at 20:04
quidquid
38.7k875125
18
Right, never take cash. The interest rate as you can see is awful, there is no grace period, so interest begins accruing immediately. MAYBE if you were being robbed and literally had a gun to your head, it would be worth it, otherwise don't even think about it.
– quid
Mar 21 at 20:11
1
@Raj oh! You've had debit cards in the past and noticed they have a cashback feature. Yeah, that's a debit card thing. Credit cards don't support that. But if they did, then yeah, that would count as a cash advance and pay that interest rate.
– Harper
Mar 21 at 21:07
7
@Harper while that may be true for most credit cards, it is not the case for Discover. It even uses the purchase APR (discover.com/credit-cards/member-benefits/…)
– clcto
Mar 21 at 21:09
2
This might be slightly too strong. I've used my credit card for this purpose when my debit card (from the same bank) broke. Initially, my bank charged its standard fee, but they waived it when I pointed out why I needed to use my credit card. It probably did help that I also used the bank's own ATM.
– MSalters
Mar 22 at 8:57
9
I've used a CC to access cash while travelling abroad. Provided I go pay the balance same-day via online banking (or even apply a positive balance in advance), it can be cheaper than paying extra fees to draw using my debit card at a foreign bank. Often the currency conversion rates are better, too.
– Kyle
Mar 22 at 9:38
|
show 11 more comments
A cash advance from a credit card is either using the card to get cash from an ATM, or sometimes you get checks that you can use. Any outstanding balance on these transactions will accrue interest at 27.5% annually.
The big downsides with these cash advances they begin accruing interest immediately, not after balance due date like normal credit card purchases. So there's no avoiding interest with a cash advance.
Best to avoid cash advances. Also, ideally you always pay off your statement balance each month to avoid any interest payments.
Edit: Removed out-dated info regarding cash advance portion being paid after regular credit card purchases, Credit Card Accountability Responsibility and Disclosure Act of 2009 eliminated this practice in 2010, and now payment in excess of minimum gets applied to highest interest rate first.
answered Mar 21 at 20:11
Hart COHart CO
34.2k67996
1
These cards accruing interest immediately wildly depends on the country you are in.
– glglgl
Mar 22 at 10:14
I don't have enough rep to answer but also check of the order payments are used. any payments you make may pay off purchases (which aren't accruing interest yet) before the cash advance is repaid. So you buy some item for £50, get a £20 advance, if you repay £20 it may be used to replay the currently interest free item, and your cash advance continues to accrue interest.
– WendyG
Mar 22 at 20:07
@WendyG: The minimum payment may be allocated that way, but in the USA the CARD Act (law) requires that any payments above the minimum have to be applied to the balance with the highest interest rate first.
– Ben Voigt
Mar 22 at 22:13
@BenVoigt cool for Americans BUT we don't know where in the word this person lives. And even if he is american in my example that still leaves you £3.50 left accruing interest on your cash advance, which could be a surprise.
– WendyG
Mar 25 at 9:58
add a comment |
protected by JoeTaxpayer♦ Mar 21 at 20:59
Thank you for your interest in this question.
Because it has attracted low-quality or spam answers that had to be removed, posting an answer now requires 10 reputation on this site (the association bonus does not count).
Would you like to answer one of these unanswered questions instead?
2 Answers
2
active
oldest
votes
2 Answers
2
active
oldest
votes
active
oldest
votes
active
oldest
votes
A "cash advance" is when you use your credit card in such a way that you receive cash. For example, if you use your credit card in an ATM machine and receive cash.
You should never ever use your credit card for a cash advance.
answered Mar 21 at 20:04
quidquid
38.7k875125
18
Right, never take cash. The interest rate as you can see is awful, there is no grace period, so interest begins accruing immediately. MAYBE if you were being robbed and literally had a gun to your head, it would be worth it, otherwise don't even think about it.
– quid
Mar 21 at 20:11
1
@Raj oh! You've had debit cards in the past and noticed they have a cashback feature. Yeah, that's a debit card thing. Credit cards don't support that. But if they did, then yeah, that would count as a cash advance and pay that interest rate.
– Harper
Mar 21 at 21:07
7
@Harper while that may be true for most credit cards, it is not the case for Discover. It even uses the purchase APR (discover.com/credit-cards/member-benefits/…)
– clcto
Mar 21 at 21:09
2
This might be slightly too strong. I've used my credit card for this purpose when my debit card (from the same bank) broke. Initially, my bank charged its standard fee, but they waived it when I pointed out why I needed to use my credit card. It probably did help that I also used the bank's own ATM.
– MSalters
Mar 22 at 8:57
9
I've used a CC to access cash while travelling abroad. Provided I go pay the balance same-day via online banking (or even apply a positive balance in advance), it can be cheaper than paying extra fees to draw using my debit card at a foreign bank. Often the currency conversion rates are better, too.
– Kyle
Mar 22 at 9:38
|
show 11 more comments
A "cash advance" is when you use your credit card in such a way that you receive cash. For example, if you use your credit card in an ATM machine and receive cash.
You should never ever use your credit card for a cash advance.
answered Mar 21 at 20:04
quidquid
38.7k875125
18
Right, never take cash. The interest rate as you can see is awful, there is no grace period, so interest begins accruing immediately. MAYBE if you were being robbed and literally had a gun to your head, it would be worth it, otherwise don't even think about it.
– quid
Mar 21 at 20:11
1
@Raj oh! You've had debit cards in the past and noticed they have a cashback feature. Yeah, that's a debit card thing. Credit cards don't support that. But if they did, then yeah, that would count as a cash advance and pay that interest rate.
– Harper
Mar 21 at 21:07
7
@Harper while that may be true for most credit cards, it is not the case for Discover. It even uses the purchase APR (discover.com/credit-cards/member-benefits/…)
– clcto
Mar 21 at 21:09
2
This might be slightly too strong. I've used my credit card for this purpose when my debit card (from the same bank) broke. Initially, my bank charged its standard fee, but they waived it when I pointed out why I needed to use my credit card. It probably did help that I also used the bank's own ATM.
– MSalters
Mar 22 at 8:57
9
I've used a CC to access cash while travelling abroad. Provided I go pay the balance same-day via online banking (or even apply a positive balance in advance), it can be cheaper than paying extra fees to draw using my debit card at a foreign bank. Often the currency conversion rates are better, too.
– Kyle
Mar 22 at 9:38
|
show 11 more comments
A "cash advance" is when you use your credit card in such a way that you receive cash. For example, if you use your credit card in an ATM machine and receive cash.
You should never ever use your credit card for a cash advance.
answered Mar 21 at 20:04
quidquid
38.7k875125
A "cash advance" is when you use your credit card in such a way that you receive cash. For example, if you use your credit card in an ATM machine and receive cash.
You should never ever use your credit card for a cash advance.
answered Mar 21 at 20:04
quidquid
38.7k875125
answered Mar 21 at 20:04
quidquid
38.7k875125
answered Mar 21 at 20:04
quidquid
38.7k875125
answered Mar 21 at 20:04
quidquid
38.7k875125
38.7k875125
18
Right, never take cash. The interest rate as you can see is awful, there is no grace period, so interest begins accruing immediately. MAYBE if you were being robbed and literally had a gun to your head, it would be worth it, otherwise don't even think about it.
– quid
Mar 21 at 20:11
1
@Raj oh! You've had debit cards in the past and noticed they have a cashback feature. Yeah, that's a debit card thing. Credit cards don't support that. But if they did, then yeah, that would count as a cash advance and pay that interest rate.
– Harper
Mar 21 at 21:07
7
@Harper while that may be true for most credit cards, it is not the case for Discover. It even uses the purchase APR (discover.com/credit-cards/member-benefits/…)
– clcto
Mar 21 at 21:09
2
This might be slightly too strong. I've used my credit card for this purpose when my debit card (from the same bank) broke. Initially, my bank charged its standard fee, but they waived it when I pointed out why I needed to use my credit card. It probably did help that I also used the bank's own ATM.
– MSalters
Mar 22 at 8:57
9
I've used a CC to access cash while travelling abroad. Provided I go pay the balance same-day via online banking (or even apply a positive balance in advance), it can be cheaper than paying extra fees to draw using my debit card at a foreign bank. Often the currency conversion rates are better, too.
– Kyle
Mar 22 at 9:38
|
show 11 more comments
18
Right, never take cash. The interest rate as you can see is awful, there is no grace period, so interest begins accruing immediately. MAYBE if you were being robbed and literally had a gun to your head, it would be worth it, otherwise don't even think about it.
– quid
Mar 21 at 20:11
1
@Raj oh! You've had debit cards in the past and noticed they have a cashback feature. Yeah, that's a debit card thing. Credit cards don't support that. But if they did, then yeah, that would count as a cash advance and pay that interest rate.
– Harper
Mar 21 at 21:07
7
@Harper while that may be true for most credit cards, it is not the case for Discover. It even uses the purchase APR (discover.com/credit-cards/member-benefits/…)
– clcto
Mar 21 at 21:09
2
This might be slightly too strong. I've used my credit card for this purpose when my debit card (from the same bank) broke. Initially, my bank charged its standard fee, but they waived it when I pointed out why I needed to use my credit card. It probably did help that I also used the bank's own ATM.
– MSalters
Mar 22 at 8:57
9
I've used a CC to access cash while travelling abroad. Provided I go pay the balance same-day via online banking (or even apply a positive balance in advance), it can be cheaper than paying extra fees to draw using my debit card at a foreign bank. Often the currency conversion rates are better, too.
– Kyle
Mar 22 at 9:38
18
18
Right, never take cash. The interest rate as you can see is awful, there is no grace period, so interest begins accruing immediately. MAYBE if you were being robbed and literally had a gun to your head, it would be worth it, otherwise don't even think about it.
– quid
Mar 21 at 20:11
Right, never take cash. The interest rate as you can see is awful, there is no grace period, so interest begins accruing immediately. MAYBE if you were being robbed and literally had a gun to your head, it would be worth it, otherwise don't even think about it.
– quid
Mar 21 at 20:11
1
1
@Raj oh! You've had debit cards in the past and noticed they have a cashback feature. Yeah, that's a debit card thing. Credit cards don't support that. But if they did, then yeah, that would count as a cash advance and pay that interest rate.
– Harper
Mar 21 at 21:07
@Raj oh! You've had debit cards in the past and noticed they have a cashback feature. Yeah, that's a debit card thing. Credit cards don't support that. But if they did, then yeah, that would count as a cash advance and pay that interest rate.
– Harper
Mar 21 at 21:07
7
7
@Harper while that may be true for most credit cards, it is not the case for Discover. It even uses the purchase APR (discover.com/credit-cards/member-benefits/…)
– clcto
Mar 21 at 21:09
@Harper while that may be true for most credit cards, it is not the case for Discover. It even uses the purchase APR (discover.com/credit-cards/member-benefits/…)
– clcto
Mar 21 at 21:09
2
2
This might be slightly too strong. I've used my credit card for this purpose when my debit card (from the same bank) broke. Initially, my bank charged its standard fee, but they waived it when I pointed out why I needed to use my credit card. It probably did help that I also used the bank's own ATM.
– MSalters
Mar 22 at 8:57
This might be slightly too strong. I've used my credit card for this purpose when my debit card (from the same bank) broke. Initially, my bank charged its standard fee, but they waived it when I pointed out why I needed to use my credit card. It probably did help that I also used the bank's own ATM.
– MSalters
Mar 22 at 8:57
9
9
I've used a CC to access cash while travelling abroad. Provided I go pay the balance same-day via online banking (or even apply a positive balance in advance), it can be cheaper than paying extra fees to draw using my debit card at a foreign bank. Often the currency conversion rates are better, too.
– Kyle
Mar 22 at 9:38
I've used a CC to access cash while travelling abroad. Provided I go pay the balance same-day via online banking (or even apply a positive balance in advance), it can be cheaper than paying extra fees to draw using my debit card at a foreign bank. Often the currency conversion rates are better, too.
– Kyle
Mar 22 at 9:38
|
show 11 more comments
A cash advance from a credit card is either using the card to get cash from an ATM, or sometimes you get checks that you can use. Any outstanding balance on these transactions will accrue interest at 27.5% annually.
The big downsides with these cash advances they begin accruing interest immediately, not after balance due date like normal credit card purchases. So there's no avoiding interest with a cash advance.
Best to avoid cash advances. Also, ideally you always pay off your statement balance each month to avoid any interest payments.
Edit: Removed out-dated info regarding cash advance portion being paid after regular credit card purchases, Credit Card Accountability Responsibility and Disclosure Act of 2009 eliminated this practice in 2010, and now payment in excess of minimum gets applied to highest interest rate first.
answered Mar 21 at 20:11
Hart COHart CO
34.2k67996
1
These cards accruing interest immediately wildly depends on the country you are in.
– glglgl
Mar 22 at 10:14
I don't have enough rep to answer but also check of the order payments are used. any payments you make may pay off purchases (which aren't accruing interest yet) before the cash advance is repaid. So you buy some item for £50, get a £20 advance, if you repay £20 it may be used to replay the currently interest free item, and your cash advance continues to accrue interest.
– WendyG
Mar 22 at 20:07
@WendyG: The minimum payment may be allocated that way, but in the USA the CARD Act (law) requires that any payments above the minimum have to be applied to the balance with the highest interest rate first.
– Ben Voigt
Mar 22 at 22:13
@BenVoigt cool for Americans BUT we don't know where in the word this person lives. And even if he is american in my example that still leaves you £3.50 left accruing interest on your cash advance, which could be a surprise.
– WendyG
Mar 25 at 9:58
add a comment |
A cash advance from a credit card is either using the card to get cash from an ATM, or sometimes you get checks that you can use. Any outstanding balance on these transactions will accrue interest at 27.5% annually.
The big downsides with these cash advances they begin accruing interest immediately, not after balance due date like normal credit card purchases. So there's no avoiding interest with a cash advance.
Best to avoid cash advances. Also, ideally you always pay off your statement balance each month to avoid any interest payments.
Edit: Removed out-dated info regarding cash advance portion being paid after regular credit card purchases, Credit Card Accountability Responsibility and Disclosure Act of 2009 eliminated this practice in 2010, and now payment in excess of minimum gets applied to highest interest rate first.
answered Mar 21 at 20:11
Hart COHart CO
34.2k67996
1
These cards accruing interest immediately wildly depends on the country you are in.
– glglgl
Mar 22 at 10:14
I don't have enough rep to answer but also check of the order payments are used. any payments you make may pay off purchases (which aren't accruing interest yet) before the cash advance is repaid. So you buy some item for £50, get a £20 advance, if you repay £20 it may be used to replay the currently interest free item, and your cash advance continues to accrue interest.
– WendyG
Mar 22 at 20:07
@WendyG: The minimum payment may be allocated that way, but in the USA the CARD Act (law) requires that any payments above the minimum have to be applied to the balance with the highest interest rate first.
– Ben Voigt
Mar 22 at 22:13
@BenVoigt cool for Americans BUT we don't know where in the word this person lives. And even if he is american in my example that still leaves you £3.50 left accruing interest on your cash advance, which could be a surprise.
– WendyG
Mar 25 at 9:58
add a comment |
A cash advance from a credit card is either using the card to get cash from an ATM, or sometimes you get checks that you can use. Any outstanding balance on these transactions will accrue interest at 27.5% annually.
The big downsides with these cash advances they begin accruing interest immediately, not after balance due date like normal credit card purchases. So there's no avoiding interest with a cash advance.
Best to avoid cash advances. Also, ideally you always pay off your statement balance each month to avoid any interest payments.
Edit: Removed out-dated info regarding cash advance portion being paid after regular credit card purchases, Credit Card Accountability Responsibility and Disclosure Act of 2009 eliminated this practice in 2010, and now payment in excess of minimum gets applied to highest interest rate first.
answered Mar 21 at 20:11
Hart COHart CO
34.2k67996
A cash advance from a credit card is either using the card to get cash from an ATM, or sometimes you get checks that you can use. Any outstanding balance on these transactions will accrue interest at 27.5% annually.
The big downsides with these cash advances they begin accruing interest immediately, not after balance due date like normal credit card purchases. So there's no avoiding interest with a cash advance.
Best to avoid cash advances. Also, ideally you always pay off your statement balance each month to avoid any interest payments.
Edit: Removed out-dated info regarding cash advance portion being paid after regular credit card purchases, Credit Card Accountability Responsibility and Disclosure Act of 2009 eliminated this practice in 2010, and now payment in excess of minimum gets applied to highest interest rate first.
answered Mar 21 at 20:11
Hart COHart CO
34.2k67996
edited Mar 22 at 1:01
answered Mar 21 at 20:11
Hart COHart CO
34.2k67996
answered Mar 21 at 20:11
Hart COHart CO
34.2k67996
answered Mar 21 at 20:11
Hart COHart CO
34.2k67996
34.2k67996
1
These cards accruing interest immediately wildly depends on the country you are in.
– glglgl
Mar 22 at 10:14
I don't have enough rep to answer but also check of the order payments are used. any payments you make may pay off purchases (which aren't accruing interest yet) before the cash advance is repaid. So you buy some item for £50, get a £20 advance, if you repay £20 it may be used to replay the currently interest free item, and your cash advance continues to accrue interest.
– WendyG
Mar 22 at 20:07
@WendyG: The minimum payment may be allocated that way, but in the USA the CARD Act (law) requires that any payments above the minimum have to be applied to the balance with the highest interest rate first.
– Ben Voigt
Mar 22 at 22:13
@BenVoigt cool for Americans BUT we don't know where in the word this person lives. And even if he is american in my example that still leaves you £3.50 left accruing interest on your cash advance, which could be a surprise.
– WendyG
Mar 25 at 9:58
add a comment |
1
These cards accruing interest immediately wildly depends on the country you are in.
– glglgl
Mar 22 at 10:14
I don't have enough rep to answer but also check of the order payments are used. any payments you make may pay off purchases (which aren't accruing interest yet) before the cash advance is repaid. So you buy some item for £50, get a £20 advance, if you repay £20 it may be used to replay the currently interest free item, and your cash advance continues to accrue interest.
– WendyG
Mar 22 at 20:07
@WendyG: The minimum payment may be allocated that way, but in the USA the CARD Act (law) requires that any payments above the minimum have to be applied to the balance with the highest interest rate first.
– Ben Voigt
Mar 22 at 22:13
@BenVoigt cool for Americans BUT we don't know where in the word this person lives. And even if he is american in my example that still leaves you £3.50 left accruing interest on your cash advance, which could be a surprise.
– WendyG
Mar 25 at 9:58
1
1
These cards accruing interest immediately wildly depends on the country you are in.
– glglgl
Mar 22 at 10:14
These cards accruing interest immediately wildly depends on the country you are in.
– glglgl
Mar 22 at 10:14
I don't have enough rep to answer but also check of the order payments are used. any payments you make may pay off purchases (which aren't accruing interest yet) before the cash advance is repaid. So you buy some item for £50, get a £20 advance, if you repay £20 it may be used to replay the currently interest free item, and your cash advance continues to accrue interest.
– WendyG
Mar 22 at 20:07
I don't have enough rep to answer but also check of the order payments are used. any payments you make may pay off purchases (which aren't accruing interest yet) before the cash advance is repaid. So you buy some item for £50, get a £20 advance, if you repay £20 it may be used to replay the currently interest free item, and your cash advance continues to accrue interest.
– WendyG
Mar 22 at 20:07
@WendyG: The minimum payment may be allocated that way, but in the USA the CARD Act (law) requires that any payments above the minimum have to be applied to the balance with the highest interest rate first.
– Ben Voigt
Mar 22 at 22:13
@WendyG: The minimum payment may be allocated that way, but in the USA the CARD Act (law) requires that any payments above the minimum have to be applied to the balance with the highest interest rate first.
– Ben Voigt
Mar 22 at 22:13
@BenVoigt cool for Americans BUT we don't know where in the word this person lives. And even if he is american in my example that still leaves you £3.50 left accruing interest on your cash advance, which could be a surprise.
– WendyG
Mar 25 at 9:58
@BenVoigt cool for Americans BUT we don't know where in the word this person lives. And even if he is american in my example that still leaves you £3.50 left accruing interest on your cash advance, which could be a surprise.
– WendyG
Mar 25 at 9:58
add a comment |
protected by JoeTaxpayer♦ Mar 21 at 20:59
Thank you for your interest in this question.
Because it has attracted low-quality or spam answers that had to be removed, posting an answer now requires 10 reputation on this site (the association bonus does not count).
Would you like to answer one of these unanswered questions instead?
1
Some credit cards also supply checks as well that can be used to draw a Cash Advance on the card. My American Express card sends me such checks about twice a year in the mail, which I promptly shred. They're covered in marketing promotion to make them seem like a better deal than normal Cash Advances, but I added up their delayed interest totals and the dates and the fee to use the check, and it turned out to be exactly the same APR rate for 1 month, and worse if left more time unpaid. I'm of Quid's opinion that such advances should simply never be used.
– Davy M
Mar 23 at 23:45