Paypal Smart Connect Cash Advance Loophole

[linux007969]

Hey guys I just found a way to take a cash advance from my Paypal Smart Connect (for a small fee of course instead of interest that normally gets added the moment you do a cash advance on a normal credit card)

I have 2 paypal accounts and I just logged into my main one that has the smart connnect attached and i choose at the top of paypal to send money and i sent it as a Gift under personal to my email address for my other paypal account and i logged into my second paypal account and bam it was there already!

I transfered $400 and they charged me $11.90 to do that. $11.90 is a hell of alot better than the cash advance interest charges normal credit cards charge.

I know cash advances are a bad idea but i basically am going to transfer that to my bank account and then use it to pay Discover in full when the cycle closes real soon and then I can use my Discover for taxes.

Then pay Paypal Smart Connect in full after cycle ends.

I'm sorta just shifting money around and delaying so everything lines up once a few paychecks role in so i can pay everything off.

At this point in time I don't want to just pay Discover in full (I owe $392.27 and have no interest till 2014 but dont want to pay minimum and let balance hang for a while and want to pay Discover in full so i can charge some of my taxes to it cuz I dont want to send a big check in the mail and have it "get lost in the mail") and take another hit in my bank account without having something to replace it with, cuz i dont want to be out money in case i get sick or have an emergancy where i have to use my checking account for a big withdraw. I'm not going broke I'm just preventing myself from going broke, and for $11.90 its justifiable!

I just thought you guys should know this loophole if you guys ever find yourselfs in dierstraights that you need to borrow money from a credit card but dont want to pay all that high interest fees, if you have a Paypal Smart Connect account attached to your Paypal account then this would be an option for you if you ever need it. 

Please don't call me stupid or whatever for doing this.

[Wolf3]

Nice tip.    I do a fair number of tricks to manage cash flow, usually when taxes are due.

[linux007969]

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@Wolf3 wrote:

Nice tip.    I do a fair number of tricks to manage cash flow, usually when taxes are due.

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Your welcome!

I thought I would make some use of my Smart Connect since I have a nice limit on it, might as well find a way to put it to good use!

[Revelate]

It's interesting, but if you're just doing this for short-term financing I'm not so certain it's that different than a cash advance on a credit card?

In this case, for easy math you paid a fee which equates to 3% interest if you were to keep that money for a year which is a pretty good deal; however, if we're talking 3 months, suddenly we're at 12%, and only one month, 36%.

[beb86]

HMM...Very interesting.

[jsickz32]

Ive done this before to pay other people using my PPSC. It never occurred to me that i could use it to send money to my other paypal account lol

[jsucool76]

Basically you're paying the 3% cash advance fee, but you still get your grace period.

[linux007969]

Well 3% is alot better than the 22% or higher that come cash advance interes charges are these days.

[visorboy1974]

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@linux007969 wrote:

Well 3% is alot better than the 22% or higher that come cash advance interes charges are these days.

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You sure you're not talking about APR?  Most cash advance fees are between 3-5% straight fee when you take it.  

[linux007969]

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@visorboy1974 wrote:

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@linux007969 wrote:

Well 3% is alot better than the 22% or higher that come cash advance interes charges are these days.

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You sure you're not talking about APR?  Most cash advance fees are between 3-5% straight fee when you take it.  

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Yes I am talking about APR cuz if i take a cash advance from my Discover its like 24% interest. So ya a one time fee of 3% is better.