Cash Advance to Pay Personal Loan

[Jon85]

Hi all,

So last year I had taken out a personal loan from Avant for $3,000 because I was in a bind. I've been paying $94 monthly since then, but it's 35.99% APR so maybe only $25-30 of that goes to principle because you pay all the finances upfront. So it was a 24-month loan. I didn't want to pay extra on it every month because I was hoping that I could come up with one lump sum to pay them off all at once. Apparently if you pay extra every month, it still gets split between interest and principle so I knew it would still cost me money.

So for the first time ever I took a cash advance from my Capital One card of $2,400, because after 8 months of payments, I still had a $2,400 balance on the loan. So with the cash advance APR of 24%, I thought I would save some money by doing this. And now my plan is to pay the Cap1 advance $800 a month and finish it off in 3 months (plus pay the remaining interest and cash advance fee, so I know it wont be an even $2,400 balance at the end of the third month). The reason why I didn't want to make large sum payments to Avant was because the interest is calculated daily, so the principle I feel wouldn't have decreased as quickly as it will when I pay $800 a month toward the cap1 cash advance.

My question is--does this hurt future CLIs with cap1 because I took a cash advance? I know it's there for emergencys if you're ever in a situation where your credit card isn't being accepted, but I also heard that it could look bad to credit card companies if you take out advances, which is why I didn't do it through my Discover Card or Amex or Chase. I would rather look bad to Cap1 than the others LOL. 

[noobody]

You may be able to do a balance transfer to cap1 depending on the offer you have.
It might be no fee same apr as purchase and/or 0% for 12 months with 2~3% bt fee.
Any option is better than u r in right now

[myjourney]

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@Jon85 wrote:

Hi all,

So last year I had taken out a personal loan from Avant for $3,000 because I was in a bind. I've been paying $94 monthly since then, but it's 35.99% APR so maybe only $25-30 of that goes to principle because you pay all the finances upfront. So it was a 24-month loan. I didn't want to pay extra on it every month because I was hoping that I could come up with one lump sum to pay them off all at once. Apparently if you pay extra every month, it still gets split between interest and principle so I knew it would still cost me money.

So for the first time ever I took a cash advance from my Capital One card of $2,400, because after 8 months of payments, I still had a $2,400 balance on the loan. So with the cash advance APR of 24%, I thought I would save some money by doing this. And now my plan is to pay the Cap1 advance $800 a month and finish it off in 3 months (plus pay the remaining interest and cash advance fee, so I know it wont be an even $2,400 balance at the end of the third month). The reason why I didn't want to make large sum payments to Avant was because the interest is calculated daily, so the principle I feel wouldn't have decreased as quickly as it will when I pay $800 a month toward the cap1 cash advance.

My question is--does this hurt future CLIs with cap1 because I took a cash advance? I know it's there for emergencys if you're ever in a situation where your credit card isn't being accepted, but I also heard that it could look bad to credit card companies if you take out advances, which is why I didn't do it through my Discover Card or Amex or Chase. I would rather look bad to Cap1 than the others LOL. 

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Why not look at Discover for a BT now to save even more money?

No one hear can say will the cash advance hurt you in all honest 

[Jon85]

I hadn't even thought of those options, thanks to both of you for pointing that out.

When I was on the phone w/the people from Avant, they told me that interest is calculated daily... so if my payoff quote for tomorrow is $2,400, the next day it'll be $2,404, and so on and so forth--so I just wanted to get it over with ASAP. With BTs (never done it before so I may be wrong), I don't know how long it takes and I thought they were only for credit cards.... so if it took another week or so in the process, that adds another $40 or so to what I'll end up owing...I guess I'm being a little paranoid now but I just want it DONE and want them out of my life for good, LOL. 

[Jon85]

OMG You guys I just saw that with my Discover BT I have the 0% APR for the 12 months.

I already took the cash advance from Cap1 an hour ago and told Avant to take out the balance tomorrow.

UGHHH I'm soooo dumb, I should have explored my options more before giving in to panic  

[myjourney]

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@Jon85 wrote:

OMG You guys I just saw that with my Discover BT I have the 0% APR for the 12 months.

I already took the cash advance from Cap1 an hour ago and told Avant to take out the balance tomorrow.

UGHHH I'm soooo dumb, I should have explored my options more before giving in to panic  

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Live and learn 

Now when the Cap1 balance clears 

BT it to Discover 

[noobody]

You could also apply slate and move other Chase credit line over to it.

[UncleB]

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@Jon85 wrote:

OMG You guys I just saw that with my Discover BT I have the 0% APR for the 12 months.

I already took the cash advance from Cap1 an hour ago and told Avant to take out the balance tomorrow.

UGHHH I'm soooo dumb, I should have explored my options more before giving in to panic  

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You're not dumb at all... you're on here checking out your options, which is a pretty smart thing to do, in my opinion. 

A couple of things... don't sweat what you've already done... it was a learning experience, and you'll have the knowledge now going forward. 

Now about your advance... don't try to stop anything (I doubt you could, anyway) since it would likely just get hosed up somewhere.  Just a bit of info, Capital One (and most issuers) will also calculate the interest for a cash advance daily, meaning even after you pay it in full, you'll get a 'final' bill for the interest that accrued up to the day they got your payment.  This is normal.

Now what you might consider is using that Discover BT to pay off your new Capital One balance.  The thing is, if you have the offer with the 3% fee you might be better off to simply leave the balance with Capital One if you plan to pay it off quickly.  However, if you intend on carrying the balance for several months you might be better off paying the 3% fee and then having no interest... it really depends on your intentions.

In any case, just remember that you have options. 

[Anonymous]

Next time you want to take a personal loan with a 36% interest rate come to me first.  I'll loan it to you for 29% and Bone Cruncher will make sure you are on time with your payments.

J/K. Glad to see you have a nice way with Discover to repay the cash advance and pay no interest.

[Jon85]

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@UncleB wrote:

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@Jon85 wrote:

OMG You guys I just saw that with my Discover BT I have the 0% APR for the 12 months.

I already took the cash advance from Cap1 an hour ago and told Avant to take out the balance tomorrow.

UGHHH I'm soooo dumb, I should have explored my options more before giving in to panic  

---

You're not dumb at all... you're on here checking out your options, which is a pretty smart thing to do, in my opinion. 

A couple of things... don't sweat what you've already done... it was a learning experience, and you'll have the knowledge now going forward. 

Now about your advance... don't try to stop anything (I doubt you could, anyway) since it would likely just get hosed up somewhere.  Just a bit of info, Capital One (and most issuers) will also calculate the interest for a cash advance daily, meaning even after you pay it in full, you'll get a 'final' bill for the interest that accrued up to the day they got your payment.  This is normal.

Now what you might consider is using that Discover BT to pay off your new Capital One balance.  The thing is, if you have the offer with the 3% fee you might be better off to simply leave the balance with Capital One if you plan to pay it off quickly.  However, if you intend on carrying the balance for several months you might be better off paying the 3% fee and then having no interest... it really depends on your intentions.

In any case, just remember that you have options. 

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 Thank you so very much for all of this!!!!! It's really made me feel a lot better.