topic Re: Cash Advance - Will it hurt my credit in Credit Cards

Cash Advance - Will it hurt my credit

tussking — Tue, 26 Jan 2016 16:35:36 GMT

Moving some $ around over the next 3-4 weeks. Will it hurt my credit with Cap1 if I do a cash advance for $2500 and pay it off in 3 weeks ? Meaning will they grown upon that for future CLI's or additional credit ?

Re: Cash Advance - Will it hurt my credit

Anonymous — Tue, 26 Jan 2016 16:37:21 GMT

I think you were trying to say "frown," but no, the bank won't have a problem because you're paying that sweet cash advance fee and interest. Or are you using a balance transfer to a checking account?

Re: Cash Advance - Will it hurt my credit

Anonymous — Tue, 26 Jan 2016 17:01:09 GMT

American Express not like you they encourage customers to fund a serve account, and later when I applied for another credit card it said too many cash advances against the current American Express cards as one of the reasons to not approve me even though I only used it one time.

Outside creditors will not see if you are using cash advances but as an internal scoring it looks bad.

Probably some wiggle room depending on where the advances are for example the casino it probably looks terrible

Re: Cash Advance - Will it hurt my credit

Anonymous — Tue, 26 Jan 2016 17:12:11 GMT

If you brain storm you can find a way to never take a cash advance from another credit card. Research Square device.

Re: Cash Advance - Will it hurt my credit

myjourney — Tue, 26 Jan 2016 17:16:27 GMT

@Anonymous wrote:
If you brain storm you can find a way to never take a cash advance from another credit card. Research Square device.

And if they somehow link the account as from you to you .....CC account shut down

Risky IMHO

Re: Cash Advance - Will it hurt my credit

tussking — Tue, 26 Jan 2016 17:17:54 GMT

Interesting idea ! Square stole $2k from me and it took my client 6 months on her AMEX to recover...Maybe another company like that would be genius !

Re: Cash Advance - Will it hurt my credit

tussking — Tue, 26 Jan 2016 17:19:33 GMT

Ok back to the CA - thx myjourney.

It is short term 3 weeks max. As long as Cap1 won't crap on me for the future...I can eat the fee.

Re: Cash Advance - Will it hurt my credit

Anonymous — Tue, 26 Jan 2016 17:28:41 GMT

@myjourney wrote:
@Anonymous wrote:
If you brain storm you can find a way to never take a cash advance from another credit card. Research Square device.
And if they somehow link the account as from you to you .....CC account shut down
Risky IMHO

Agree 100% with mj here. Here is a prior post from myfico that speaks to this topic (from a few years back):

"Using Square to swipe your own credit card is against TOS. In fact all merchant accounts impose this restriction, not just Square. Violating TOS can get your name on to TMF (terminated merchant file), a universal blacklist for merchant account."

Not a wise thing to do at all.

Re: Cash Advance - Will it hurt my credit

UncleB — Tue, 26 Jan 2016 17:36:28 GMT

As far as it harming your overall credit, you're fine there.

As far as Capital One, I don't think you have to worry about AA, but they might use it as a reason to deny a CLI in the immediate future (just speculating based on my experience with other lenders).

In the past I've been able to avoid taking a cash advance by using balance transfers... possibly that could be a viable option for you as well.

Re: Cash Advance - Will it hurt my credit

tussking — Tue, 26 Jan 2016 18:33:35 GMT

I've never used a balance transfer. Doesn't that mean I'm just moving the $ to another card ? Someone mentioned transferring to my checking account ?

Re: Cash Advance - Will it hurt my credit

Nova5041 — Tue, 26 Jan 2016 18:42:29 GMT

Yeah capital one offers bt checks that are wrote out to you, for you to cash then pay whatever bill you need.

Re: Cash Advance - Will it hurt my credit

UncleB — Tue, 26 Jan 2016 18:43:19 GMT

@tussking wrote:
I've never used a balance transfer. Doesn't that mean I'm just moving the $ to another card ? Someone mentioned transferring to my checking account ?

Some folks have done a BT to a checking account, but that can be 'iffy', and if time is important I wouldn't recommend it. The way I've used the BT in the past is when I need cash, instead of using my cash to PIF an account that I always pay in full each month, I use the BT to make the payment which leaves me the cash to spend.

You have to watch for the BT to post, and if it hasn't posted by the due date you'll need to make the minimum payment the usual way, but then once the BT posts the account will be PIF as usual, and you'll have your cash as well.

Of course this won't work if you need a significant amount of cash... in that case you'll just have to take the advance. As long as you don't have to do it often you should be fine. I just prefer the BT since usually the fee is a bit lower, and the APR is lower for the amount of time the 'float' is needed.

Re: Cash Advance - Will it hurt my credit

UncleB — Tue, 26 Jan 2016 18:55:45 GMT

Added note: when I mention a BT, I'm not referring to the access checks, but a card to card balance transfer.

If you have BT checks (or 'access' checks) those are fine to deposit into your checking account, especially if you can get one that is no-fee.