Personal Finance

Cash advance question

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  • Mar 15th, 2012 11:03 am
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Member
Jun 19, 2005
223 posts
175 upvotes

Cash advance question

Say I have the following scenario, would this basically work for me as a 0.9% loan?

I take a cash advance, say $1000 from one credit card of mine and then paid it off immediately and fully using a balance transfer from my second credit card with say 0.9% balance transfer rate. I have $0 balances on each of these cards.

thanks.
4 replies
Member
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Mar 2, 2010
452 posts
44 upvotes
Not exactly. Typically credit cards charge at least 1% cash advance fees. Hence your cost would be $10 more (assuming 1% cash advance charge).
Also note that interest on cash advance applies from day 1. Hence you may have to pay the interest charges on 1st card, by the time you are able to complete balance transfer from 2nd card onto the first.

I am assuming you have a 0.9% credit card. Does that rate apply to balance transfers only or for writing checks as well? You may be better off writing a check to your bank account rather than transferring money between cards.
Deal Fanatic
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Nov 23, 2005
9005 posts
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You would still need to pay interest on cash advance from CC A, until the balance transfer from CC B comes through; and this can take 7-10biz days.
Deal Addict
Jul 21, 2004
1361 posts
107 upvotes
You can start the balance transfer early and give CC A a surplus before going in to get your cash advance. But why do all that juggling? can't you write yourself a cheque from CC B and deposit it directly into your bank account?
boyoflondon wrote: You would still need to pay interest on cash advance from CC A, until the balance transfer from CC B comes through; and this can take 7-10biz days.
Deal Fanatic
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Nov 23, 2005
9005 posts
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User Name wrote: You can start the balance transfer early and give CC A a surplus before going in to get your cash advance. But why do all that juggling? can't you write yourself a cheque from CC B and deposit it directly into your bank account?

True. It would be much easier to write yourself a chq then go through all the hoops.

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