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Member
Chell3719
Posts: 8
Registered: ‎04-23-2007
0

CC cash advance vs personal loan

I have a short term loan on my government retirement (12K).  I want to increase it (by 6.5K), but can't becuase you cant have two loans at the same time.  I have to pay it off for 60 days before I can take a new one.  My choices are to take a personal loan at my bank for a short term or a cash advance on one of my credit cards.  I have 4 cards that I carry and all have enough to take the cash advance and only one has a running balance (the others are paid off each month).  This would be for 60 - 90 days.  The idea would be to pay off the loan against my retirement, wait the 60 days, reapply adding in the new amount and then pay off the short term loan or my credit card.  I am trying to decide which will help my credit or hurt it less.  Any thoughts???  Thanks.  Chell

Mega Contributor
Creditaddict
Posts: 19,564
Registered: ‎10-23-2007

Re: CC cash advance vs personal loan

why not do a balance transfer to the credit card. I would never take a cash advance.
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Valued Contributor
jmbfl
Posts: 1,185
Registered: ‎03-04-2008
0

Re: CC cash advance vs personal loan

CASH ADVANCE = REALLY BAD IDEA!

 

1) Very expensive way to obtain money.

2) Look horrible to the issuer - many have internal scoring mechanisms that evaluate how you use your card. Taking a cash advance is one of the worst things you can do.

 

Do a balance transfer if you can. If you can't do that get a personal loan from a reasonable credit institution.

 

I know you didn't ask, but invading the equity in your retirement plan is a bad idea. The reason has to be beyond compelling!


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