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cash advance interest question

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Anonymous
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cash advance interest question

I have a CC (Chase) that I took out a cash advance. I did this because I was going to get paid about 2 days after my big EFT payments come out of my checking accout (especially mortgage.) In other words, I did the cash advance, immediately put it in my checking account to cover the expenses, and a week later paid it off completely. (The CC itself has a zero balance and shows online, no purchases or anything.)

 

My question is - since the interest will not show up until the statement is cut (I am right about that right?), does that mean that on my next statement, I would have to pay for any new purchases I make before I could pay the interest on that cash advance?

 

I plan on PIF so it shouldn't be an issue, but I am curious if this would happen.

 

Thanks!

Message 1 of 4
3 REPLIES 3
Anonymous
Not applicable

Re: cash advance interest question

You will only owe interest on the CA from the time you took it until it was paid in full. Any purchases you make after that will be billed at the purchase rate and should be broke down separately on your bill.
Message 2 of 4
Anonymous
Not applicable

Re: cash advance interest question

The best bet would be to call the CC company and ask them, but the general rule is:

 

Items with a lower interest rate are paid first before the higher interest items. 

 

So if you make a payment and you have purchases at 10% interest and a cash advance for 20% interest, the payment will get applied to your purchases first.  To make sure you don't continue to pay interest on that cash advance you would, I think, need to make a payment big enough to cover the purchases and the the interest from the cash advance. 

Message 3 of 4
FretlessMayhem
Senior Contributor

Re: cash advance interest question

While I don't disagree with the other posters, you might not end up paying interest on your CA for the first 30 days, since it was a Chase card.

 

I've cash advanced off my Chase Freedom a couple of times. Every time I get charged a CA fee (minimum $10) that shows up on my account immediately. I called and asked how much interest I would accrue, and they told me I would not accrue any for the first statement at least, because I paid the CA fee. 

 

YMMV, but it's been that way about 4 times so far with Chase. 

Here we go again...
Message 4 of 4
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