Cash Advance Discover IT (NOT "Cash Over")

[tufa4311]

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@Infiniti515 wrote:

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@tufa4311 wrote:

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@Infiniti515 wrote:

Regarding Wells Fargo's reason for denial being due to a cash advance I have never heard that.

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They where very clear. I was tranferred to the CLI dept, not knowing there was such a beast, and she was clear and to the point, cash advances hinder your chances for CLI's.

Here's an examle for the same thing, a Discover CLI denial with a cash advance being one reason cited for the denial:

http://ficoforums.myfico.com/t5/Credit-Cards/Just-learned-something-new-about-CLI-request-with-Disco...

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Wow thats very informative thank you for sharing. Please see the info from Discover about getting cash;

"Get cash over your purchases and save time and money

Take care of two errands at once. And pay no fee.

Get cash where you shop the most
Get the cash you need without an extra trip to the ATM.
Avoid fees- No transaction fee. No ATM fee. No bank fee.
Your regular purchase APR applies to the cash you get and there are no hidden fees.

It's easy to get cash over! Here's how
1. Use your Discover Card at checkout
2. Choose how much cash over you'd like over your purchase amount
3. Get your cash and be on your way!"

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All this is referring to the Cash Over feature, which is not the same as a cash advance.

[kdm31091]

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@tufa4311 wrote:

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@Infiniti515 wrote:

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@tufa4311 wrote:

---

@Infiniti515 wrote:

Regarding Wells Fargo's reason for denial being due to a cash advance I have never heard that.

---

They where very clear. I was tranferred to the CLI dept, not knowing there was such a beast, and she was clear and to the point, cash advances hinder your chances for CLI's.

Here's an examle for the same thing, a Discover CLI denial with a cash advance being one reason cited for the denial:

http://ficoforums.myfico.com/t5/Credit-Cards/Just-learned-something-new-about-CLI-request-with-Disco...

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Wow thats very informative thank you for sharing. Please see the info from Discover about getting cash;

"Get cash over your purchases and save time and money

Take care of two errands at once. And pay no fee.

Get cash where you shop the most
Get the cash you need without an extra trip to the ATM.
Avoid fees- No transaction fee. No ATM fee. No bank fee.
Your regular purchase APR applies to the cash you get and there are no hidden fees.

It's easy to get cash over! Here's how
1. Use your Discover Card at checkout
2. Choose how much cash over you'd like over your purchase amount
3. Get your cash and be on your way!"

---

All this is referring to the Cash Over feature, which is not the same as a cash advance.

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Ok, if you want an actual cash advance from Discover, not the cash over, you'll be charged interest.

[tufa4311]

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@kdm31091 wrote:

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@tufa4311 wrote:

---

@Infiniti515 wrote:

---

@tufa4311 wrote:

---

@Infiniti515 wrote:

Regarding Wells Fargo's reason for denial being due to a cash advance I have never heard that.

---

They where very clear. I was tranferred to the CLI dept, not knowing there was such a beast, and she was clear and to the point, cash advances hinder your chances for CLI's.

Here's an examle for the same thing, a Discover CLI denial with a cash advance being one reason cited for the denial:

http://ficoforums.myfico.com/t5/Credit-Cards/Just-learned-something-new-about-CLI-request-with-Disco...

---

Wow thats very informative thank you for sharing. Please see the info from Discover about getting cash;

"Get cash over your purchases and save time and money

Take care of two errands at once. And pay no fee.

Get cash where you shop the most
Get the cash you need without an extra trip to the ATM.
Avoid fees- No transaction fee. No ATM fee. No bank fee.
Your regular purchase APR applies to the cash you get and there are no hidden fees.

It's easy to get cash over! Here's how
1. Use your Discover Card at checkout
2. Choose how much cash over you'd like over your purchase amount
3. Get your cash and be on your way!"

---

All this is referring to the Cash Over feature, which is not the same as a cash advance.

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Ok, if you want an actual cash advance from Discover, not the cash over, you'll be charged interest.

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I'm going to take a wild guess and assume that myFICO friends are not reading the original post. I have no interest in learning about Cash Over at this time, nor do I care about being charged interest at this time. These were the questions that I originally had:

1) are cash advances not seen as cash advances, but rather just a purchase, by Discover

2) are cash advances always looked upon negatively (obv Wells Fargo Visa views them this way or it would not be used as a reason to deny a CLI)

3) if the answer to question #2 is yes, would I even want to use Discover as overdraft protection for a Wells Fargo checking account, would Discover see it in a bad way

4) since an overdraft is not reported on your credit report, yes the balance is, but I don't believe anyone could determine if a cahs advance was made just by looking at my CR - when I apply for a mortgage could this be identified?

Question 1 has been answered to my satisfaction and question 3 is moot as it has been noted that one institutions' CC can not be used as OD protection for another institutions accounts. I'm still interested in responses to #2 and 4.

(lastly, it may be possible that I'm getting a little male pms tonight so please forgive my tone if it is coming through)

[kdm31091]

But if you don't care about interest, then what does it matter whether the cash advances comes up as a cash advance or a purchase?

You're not coming across rude; just a bit unclear as to what you are asking.

Anyway, I don't understand why you are so concerned about overdraft/cash advances. In my opinion, there should be no reason to ever plan to take a cash advance i.e. it should be an emergency. And why you would ever expect to have an overdraft is confusing to me, too. In short....why are you planning for this to happen? It's confusing. No offense but if you are planning to take on a mortgage I think you need to be able to manage your money without resorting to cash advances and/or overdrafts. That sounds rude but it's the truth.

No an overdraft will not hurt your credit but I could see lenders looking on it poorly because it's showing lack of responsibility for your money.

[tufa4311]

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@kdm31091 wrote:

But if you don't care about interest, then what does it matter whether the cash advances comes up as a cash advance or a purchase?

You're not coming across rude; just a bit unclear as to what you are asking.

Anyway, I don't understand why you are so concerned about overdraft/cash advances. In my opinion, there should be no reason to ever plan to take a cash advance i.e. it should be an emergency. And why you would ever expect to have an overdraft is confusing to me, too. In short....why are you planning for this to happen? It's confusing. No offense but if you are planning to take on a mortgage I think you need to be able to manage your money without resorting to cash advances and/or overdrafts. That sounds rude but it's the truth.

No an overdraft will not hurt your credit but I could see lenders looking on it poorly because it's showing lack of responsibility for your money.

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As I noted in my original post - I was denied a CLI due to the fact that I took a cash advance on the card. There is no planning on getting an OD or CA, there are no worries on managing money, I pay all cards off in full after reporting every cycle, I was already approved for a mortgage 15 months ago but decided to wait. I am in a better financial situation now, money and credit score wise, then I was then - there is only trying to determine what harm the advance I took in the past has done. And, no, it doesn't sound rude, why would that sound rude?

As for why I am asking these final two questions - becuase I am interested. I did not realize a cash advance was looked at in a bad light by creditors and I am a person that has an interest in educating themselves on these issues. When I joined myFICO I knew about as much on credit as your average Joe, now I know much more but will always be a student. I did not realize I had to justify why I have the questions I have but I hope I have justified them to your satisfaction.

Now, where were we, ah, yes, my last two questions:

2) are cash advances always looked upon negatively (obv Wells Fargo Visa views them this way or it would not be used as a reason to deny a CLI)

4) can an over-draft be indentified on a credit report, and if so, can this affect a mortgage application (I edited this question for clarity)

[kdm31091]

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@tufa4311 wrote:

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@kdm31091 wrote:

But if you don't care about interest, then what does it matter whether the cash advances comes up as a cash advance or a purchase?

You're not coming across rude; just a bit unclear as to what you are asking.

Anyway, I don't understand why you are so concerned about overdraft/cash advances. In my opinion, there should be no reason to ever plan to take a cash advance i.e. it should be an emergency. And why you would ever expect to have an overdraft is confusing to me, too. In short....why are you planning for this to happen? It's confusing. No offense but if you are planning to take on a mortgage I think you need to be able to manage your money without resorting to cash advances and/or overdrafts. That sounds rude but it's the truth.

No an overdraft will not hurt your credit but I could see lenders looking on it poorly because it's showing lack of responsibility for your money.

---

As I noted in my original post - I was denied a CLI due to the fact that I took a cash advance on the card. There is no planning on getting an OD or CA, there are no worries on managing money, I pay all cards off in full after reporting every cycle, I was already approved for a mortgage 15 months ago but decided to wait. I am in a better financial situation now, money and credit score wise, then I was then - there is only trying to determine what harm the advance I took in the past has done. And, no, it doesn't sound rude, why would that sound rude?

As for why I am asking these final two questions - becuase I am interested. I did not realize a cash advance was looked at in a bad light by creditors and I am a person that has an interest in educating themselves on these issues. When I joined myFICO I knew about as much on credit as your average Joe, now I know much more but will always be a student. I did not realize I had to justify why I have the questions I have but I hope I have justified them to your satisfaction.

Now, where were we, ah, yes, my last two questions:

2) are cash advances always looked upon negatively (obv Wells Fargo Visa views them this way or it would not be used as a reason to deny a CLI)

4) can an over-draft be indentified on a credit report, and if so, can this affect a mortgage application (I edited this question for clarity)

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I think being denied a CLI because of a cash advance is because of risk. Generally someone who is taking a cash advance is desperate for money and has no other option. This doesn't bode well for a creditor wanting to extend you more credit and therefore more risk. That is why it is looked upon negatively, and also why if you notice, with most cards your cash limit is far, far less than your actual credit limit.

I don't think an overdraft can show up on a credit report so no it would not hurt your mortgage app.

[tufa4311]

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@kdm31091 wrote:

---

@tufa4311 wrote:

---

@kdm31091 wrote:

But if you don't care about interest, then what does it matter whether the cash advances comes up as a cash advance or a purchase?

You're not coming across rude; just a bit unclear as to what you are asking.

Anyway, I don't understand why you are so concerned about overdraft/cash advances. In my opinion, there should be no reason to ever plan to take a cash advance i.e. it should be an emergency. And why you would ever expect to have an overdraft is confusing to me, too. In short....why are you planning for this to happen? It's confusing. No offense but if you are planning to take on a mortgage I think you need to be able to manage your money without resorting to cash advances and/or overdrafts. That sounds rude but it's the truth.

No an overdraft will not hurt your credit but I could see lenders looking on it poorly because it's showing lack of responsibility for your money.

---

As I noted in my original post - I was denied a CLI due to the fact that I took a cash advance on the card. There is no planning on getting an OD or CA, there are no worries on managing money, I pay all cards off in full after reporting every cycle, I was already approved for a mortgage 15 months ago but decided to wait. I am in a better financial situation now, money and credit score wise, then I was then - there is only trying to determine what harm the advance I took in the past has done. And, no, it doesn't sound rude, why would that sound rude?

As for why I am asking these final two questions - becuase I am interested. I did not realize a cash advance was looked at in a bad light by creditors and I am a person that has an interest in educating themselves on these issues. When I joined myFICO I knew about as much on credit as your average Joe, now I know much more but will always be a student. I did not realize I had to justify why I have the questions I have but I hope I have justified them to your satisfaction.

Now, where were we, ah, yes, my last two questions:

2) are cash advances always looked upon negatively (obv Wells Fargo Visa views them this way or it would not be used as a reason to deny a CLI)

4) can an over-draft be indentified on a credit report, and if so, can this affect a mortgage application (I edited this question for clarity)

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I think being denied a CLI because of a cash advance is because of risk. Generally someone who is taking a cash advance is desperate for money and has no other option. This doesn't bode well for a creditor wanting to extend you more credit and therefore more risk. That is why it is looked upon negatively, and also why if you notice, with most cards your cash limit is far, far less than your actual credit limit.

I don't think an overdraft can show up on a credit report so no it would not hurt your mortgage app.

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Thank you, those spoke directly to my questions, much appreciated.

With regard to the cash advance, it was my fault done when I knew less about credit. I used a credit card to make my monthly car loan payment at my credit union thinking I was showing good use, however, I did not realize that it was not a credit card charge. They were first taking a cash advance, then putting it towards the car loan payment. It was my ignorance on credit at the time for not realizing that it mattered how they did it at the credit union counter.

With regard to the overdraft protection, I had multiple accounts with multiple institutions, checking and saving, that I don't really need but were set up when I first opened the accounts. I had an auto-transfer set up to take X amount of dollars out of one account and deposit it into another. I then changed the account that my salary is auto-deposited into thus leaving nothing in the account that the transfer was supposed to come from.  Time came for the auto-transfer and nothing was there so overdraft protection was used. Happened once which then kicked me into closing all these extra accounts I don't need - but the damage was done. How much damage, how long it would affect me, and who could see it I did not know thus the reason for my post.

[UncleB]

I just want to chime in on the OP's original question on using a credit card for overdraft protection.  I have an account at Wells Fargo, and it's true that with them a credit card used for OD protection must be issued by them. 

However, I also have a checking account with USAA, and while they will allow any of their own credit products to be used for OD protection, they will also allow a Mastercard from another issuer to be designated as well (for some reason only Mastercard; no Visa or Amex).  Before I got a Visa with them, I assigned my Capital One QuickSilver Mastercard for OD protection.

Basically, the ability to use a credit card issued by another company for checking account OD protection varies from bank to bank.