CC utilization question

[ecxpa]

just out of curiosity.......see the question from time to time about how often you have to charge something on a card to keep it active.  Is getting a cash advance considered activity on a CC.  In other words for cards you don't use a lot could you do a cash advance and pay it  back within a few days considered activity.  I know you would have to pay a small amount of interest since there is usually no grace period and no rewards ......but would this make the acct look better rather than just not using it?

[Chris679]

Would work but it's a terrible idea. Just charge something small once a year and pay it off once it posts.

[ecxpa]

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@Chris679 wrote:
Would work but it's a terrible idea. Just charge something small once a year and pay it off once it posts.

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True.....but if you don't use the card with significant charges you are less likely to get a CLI.....would getting cash advances at or close to your limits  improve the chances of such

[gdale6]

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@ecxpa wrote:

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@Chris679 wrote:
Would work but it's a terrible idea. Just charge something small once a year and pay it off once it posts.

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True.....but if you don't use the card with significant charges you are less likely to get a CLI.....would getting cash advances at or close to your limits  improve the chances of such

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Doubtful cash advances would get you a CLI this IMO makes someone look desperate for cash.

[Chris679]

I agree with the above, I don't think cash advance is ever a good idea. Should be only when you need it which should be never.

[NRB525]

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@gdale6 wrote:

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@ecxpa wrote:

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@Chris679 wrote:
Would work but it's a terrible idea. Just charge something small once a year and pay it off once it posts.

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True.....but if you don't use the card with significant charges you are less likely to get a CLI.....would getting cash advances at or close to your limits  improve the chances of such

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Doubtful cash advances would get you a CLI this IMO makes someone look desperate for cash.

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Most cards do have a cash advance feature. You might want to check a few things in your documentation however:

Instant cash advance fee, usually 3% or 4% of the advance amount, with a minimum charge, usually $10 sometimes more

The interest rate clock starts immediately, no grace period

The interest rate is usually much higher than any purchase APR you may have, not quite penalty APR, but nearly the same effect

The card probably has a specific "Cash advance" limit that is not your CL, often only a few hundred dollars.

Yes, the cash advance would be considered usage. And the title of this thread should be changed: It is not utilization you are discussing, it is usage. Different concept.

Cheers!

[ecxpa]

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@gdale6 wrote:

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@ecxpa wrote:

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@Chris679 wrote:
Would work but it's a terrible idea. Just charge something small once a year and pay it off once it posts.

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True.....but if you don't use the card with significant charges you are less likely to get a CLI.....would getting cash advances at or close to your limits  improve the chances of such

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Doubtful cash advances would get you a CLI this IMO makes someone look desperate for cash.

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Excellent point and I agree.........just wonder how lenders see it or if anybody has had any experience.  Could this trigger AA?  Do other lenders actually know it is a cash advance

[ecxpa]

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@Chris679 wrote:
I agree with the above, I don't think cash advance is ever a good idea. Should be only when you need it which should be never.

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I agree with the first part of your answer but not the last part........what if you are stranded somewhere without cash....after all that's what the cash advance feature is for isn't it?

[Chris679]

Other lenders will not see it and I'm not touching the AA question or I will be attacked by the fear-mongers.

[ecxpa]

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@NRB525 wrote:

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@gdale6 wrote:

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@ecxpa wrote:

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@Chris679 wrote:
Would work but it's a terrible idea. Just charge something small once a year and pay it off once it posts.

---

True.....but if you don't use the card with significant charges you are less likely to get a CLI.....would getting cash advances at or close to your limits  improve the chances of such

---

Doubtful cash advances would get you a CLI this IMO makes someone look desperate for cash.

---

Most cards do have a cash advance feature. You might want to check a few things in your documentation however:

Instant cash advance fee, usually 3% or 4% of the advance amount, with a minimum charge, usually $10 sometimes more

The interest rate clock starts immediately, no grace period

The interest rate is usually much higher than any purchase APR you may have, not quite penalty APR, but nearly the same effect

The card probably has a specific "Cash advance" limit that is not your CL, often only a few hundred dollars.

Yes, the cash advance would be considered usage. And the title of this thread should be changed: It is not utilization you are discussing, it is usage. Different concept.

Cheers!

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Points well taken and common knowledge.......however, not sure I understand your point about usage and utilization.......how are they so different?