The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Murse on October 10, 2015, 08:32:58 AM
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Currently working on building my credit score. My card came with the details of the card. On it was the option to get a cash advance for like 20% interest. I don't know how this works and fear I may take a cash advance by mistake.
Is this related to debit/credit, or is it something different? I'm afraid to use my card because I don't know how this works. Thanks.
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Don't do anything you don't understand.
Cash advance, Payday loan, title loan....what do you think of when you hear these things?
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Don't do anything you don't understand.
Cash advance, Payday loan, title loan....what do you think of when you hear these things?
I understand that. My question is more like- if I purchase something at a grocery store or little boutique or anywhere, is there any chance they could run it as a cash advance?
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Don't do anything you don't understand.
Cash advance, Payday loan, title loan....what do you think of when you hear these things?
I understand that. My question is more like- if I purchase something at a grocery store or little boutique or anywhere, is there any chance they could run it as a cash advance?
No.
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You have to specifically request a cash advance. The bank is loaning you cash instead of credit (which in my opinion is all the same anyway... the bank is giving you something you don't have, and BoFA calls it a "cash credit") which leads to the high interest rate.
You're basically borrowing a CASH amount against the CREDIT you have. Let's say you're short on rent but can't pay rent with a credit card... that's where the cash advance comes from.
Again, unless you request it, the bank doesn't do anything with it.
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You have to specifically request a cash advance. The bank is loaning you cash instead of credit (which in my opinion is all the same anyway... the bank is giving you something you don't have, and BoFA calls it a "cash credit") which leads to the high interest rate.
You're basically borrowing a CASH amount against the CREDIT you have. Let's say you're short on rent but can't pay rent with a credit card... that's where the cash advance comes from.
Again, unless you request it, the bank doesn't do anything with it.
Thank you!
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My question is more like- if I purchase something at a grocery store or little boutique or anywhere, is there any chance they could run it as a cash advance?
I'm no expert, but I believe if you use the "cash back with purchase" option at the grocery store, the cash back portion is considered a cash advance.
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My question is more like- if I purchase something at a grocery store or little boutique or anywhere, is there any chance they could run it as a cash advance?
I'm no expert, but I believe if you use the "cash back with purchase" option at the grocery store, the cash back portion is considered a cash advance.
??? I've never seen any store (grocery, target etc.) allow you to get cash back via a credit card. Only with debit, or perhaps debit run as credit.
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Call customer service at the credit card company and ask them about it, to make sure you understand how it works and the ramifications. I think my credit cards have that cash advance feature, but I wouldn't use it...that's what emergency funds are for. Regarding getting cash back at the cashier's after making a purchase...I have only ever been asked that at Aldi's, which is the only place I use my debit card. (My ATM card is also a debit card.)
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The checks they mail you work like a cash advance too. Don't use them to pay anything thinking it'll be billed to your CC like a regular charge. Shred them until you can get them to stop sending them to you.