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Valued Contributor
dddewdrop
Posts: 1,060
Registered: ‎02-06-2013

Capital One Cash Advance Question

     I got a cash advance on my Capital One Platinum card2 weeks ago. It hit my account exactly on the statement date (not sure if that comes into play or not). I just paid my card balance in full which included the cash advance plus some other charges on the card. I just opened this card and this nexwas my first statement.   My account is showing a zero balance now. Will I be charged some interest on my next statement fro,  that cash advance due to the fact that I paid my balance 2 weeks after I made the advance or will my balance on the next statement be 0 like it is right now? I notice that a 10 dollar cash advance fee already hit my account a week ago and I have already paid that when i PIFed. The reason I am asking is I want to optimise my score by having one of my 2 cards at a 0 balance at the end of the month and the other with a balance at less that 9% util. Currently, both my cards htave a zero balance because I paid both of them in full. My second Walmart card I also had a cash advance on this month (I wanted to try charging and having a cash advance on both my cards to better understand how the cards worked.) Both are PIF and showing zero balances. Will either or both charge me an interest fee at the end of the month?

0/10001100/13001346/16001699/2000Prepaid ,,Recent scores:FICO EX 632,EQ 635,TU 632...Link to my Rebuild Log
Valued Contributor
FinStar
Posts: 5,156
Registered: ‎10-21-2012

Re: Capital One Cash Advance Question


dddewdrop wrote:

     I got a cash advance on my Capital One Platinum card2 weeks ago. It hit my account exactly on the statement date (not sure if that comes into play or not). I just paid my card balance in full which included the cash advance plus some other charges on the card. I just opened this card and this nexwas my first statement.   My account is showing a zero balance now. Will I be charged some interest on my next statement fro,  that cash advance due to the fact that I paid my balance 2 weeks after I made the advance or will my balance on the next statement be 0 like it is right now? I notice that a 10 dollar cash advance fee already hit my account a week ago and I have already paid that when i PIFed. The reason I am asking is I want to optimise my score by having one of my 2 cards at a 0 balance at the end of the month and the other with a balance at less that 9% util. Currently, both my cards htave a zero balance because I paid both of them in full. My second Walmart card I also had a cash advance on this month (I wanted to try charging and having a cash advance on both my cards to better understand how the cards worked.) Both are PIF and showing zero balances. Will either or both charge me an interest fee at the end of the month?


You will be charged interest on the cash advance portion of your balance for the duration of such balance until paid.  Since any cash advance payoff can be tricky (especially since it billed during the posting of the advance).  Unless you know how the average daily balance formula calculation works to determine the exact amount you will owe when your next statement closes, it is always best to submit a payment through your bank for an estimated amount of the advance.  You may have already paid the cash advance fee, but the interest is still due on the advance amount.


Some folks would rather push a payment through their bank so it leaves a credit balance on the account (say $50), then when the account statement closes with the cash advance interest (say $35) then you are still left with a $15 CR on your account (overpayment is better than undepayment if you are attempting to achieve a "zero balance" net reporting).  Credit balances are not reported to the credit bureaus, just treated as a zero balance.  Then, simply request a refund or use toward your next purchase on the card.

 

If I'm not mistaken, for the Walmart card (store or Discover version), if you obtain any type of cashback at POS, then it is treated like part of your purchase rate (still high) but if you PIF then it should not result on a residual charge - check your CC agreement.  However, someone else who may be more familiar with such feature can chime in on that piece. 

Valued Contributor
dddewdrop
Posts: 1,060
Registered: ‎02-06-2013

Re: Capital One Cash Advance Question

    I went on the online chat for Capital One. They said that I will have a 50 cent interest charge on my next bill. I am trying to have one card with no balance and one with a very small one (like 5 dollars). But it doesn't matter this month. I want to experiment so I will have it completely figured out when the time comes that I need to maximise my score. It is good to know that if I have a credit balance than it will be treated as 0. On my credit report. Thanks for the info.

0/10001100/13001346/16001699/2000Prepaid ,,Recent scores:FICO EX 632,EQ 635,TU 632...Link to my Rebuild Log

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