topic Re: Cash advance limits in Credit Cards

Cash advance limits

Anonymous — Wed, 09 Jun 2021 18:36:04 GMT

Hi all,

So I've been working on my credit and eventhough Im on a dirty profile, I've been pretty blessed to have the cards that I like and would want to keep.

I've noticed the variance in my cash advance limits and am here seeking insight. Is the limit a reflection of your credit worthiness, relationship with the lender or just more about the lenders practices? Perhaps it's a combination of factors? Let me add that I'm not planning on using a cash advance. Maybe-as is typical for me-I'm over analyzing, but still wanted to pose the question to the community for feedback.

Cards with cash advance:

NFCU -$32k sl / $9600 cash advance / 35 months old

AMEX- $40k sl/ $1200 cash advance/ 20 months old

BofA- $24 sl /$21k cash advance/ 39 years (I was fortunate to be added to my elderly relatives account)

Re: Cash advance limits

Anonymous — Wed, 09 Jun 2021 19:19:06 GMT

AMEX is known to be really stingy with cash advance limits. NFCU gives you 30% of the limit for cash advances. I don't know about BoA's policies.

Re: Cash advance limits

Anonymous — Wed, 09 Jun 2021 19:32:04 GMT

Thank you for the info. I was wondering about that Amex. They're kinda particular.

Re: Cash advance limits

Anonymous — Wed, 09 Jun 2021 19:42:17 GMT

@Anonymous wrote:
Thank you for the info. I was wondering about that Amex. They're kinda particular.

I have a $400 limit on my $5K BCE, $200 on my $3K Cash Magnet, $2800 on my $14K Business Amazon Prime. They definitely don't like cash advances and you can tell because of the small limit and the fact you can't even see your cash advance limit easily on the website. I had to look at a statement for the two personal cards and my mailed documentation for my business card since a statement hasn't generated for that one yet to figure out what they were.

Re: Cash advance limits

Anonymous — Wed, 09 Jun 2021 20:00:43 GMT

I don't like them either...the interest starts accruing immediately on them if I recall correctly from my telemarketing days 25+ years ago 🤣

Re: Cash advance limits

digitek — Wed, 09 Jun 2021 20:25:04 GMT

Fairly recent big thread on this topic with lots of data points.

Varies wildly by lender fpr the most part, slight correlation with credit worthiness but not really.

Can't find the thread myself right now...

Re: Cash advance limits

Anonymous — Wed, 09 Jun 2021 20:26:42 GMT

@Anonymous wrote:
I don't like them either...the interest starts accruing immediately on them if I recall correctly from my telemarketing days 25+ years ago 🤣

Yeah that's how the interest works on them. I actually took a $450 advance on my NFCU Platinum card back in April to cover some things because I didn't think a deposit was going to post in time and I paid it off the same day and got hit with $.10 of interest on my statement.

Re: Cash advance limits

coldfusion — Wed, 09 Jun 2021 20:36:29 GMT

@Anonymous wrote:
AMEX is known to be really stingy with cash advance limits. NFCU gives you 30% of the limit for cash advances. I don't know about BoA's policies.

BoA can use several factors but the product line is relevant. It can be anywhere from 10% on for example the BBR or up to 40% of the card's current CL on other cards like the Premium Rewards or the Cash Rewards variants.

Re: Cash advance limits

SouthJamaica — Wed, 09 Jun 2021 20:51:03 GMT

@Anonymous wrote:
Hi all,
So I've been working on my credit and eventhough Im on a dirty profile, I've been pretty blessed to have the cards that I like and would want to keep.

I've noticed the variance in my cash advance limits and am here seeking insight. Is the limit a reflection of your credit worthiness, relationship with the lender or just more about the lenders practices? Perhaps it's a combination of factors? Let me add that I'm not planning on using a cash advance. Maybe-as is typical for me-I'm over analyzing, but still wanted to pose the question to the community for feedback.

Cards with cash advance:
NFCU -$32k sl / $9600 cash advance / 35 months old
AMEX- $40k sl/ $1200 cash advance/ 20 months old
BofA- $24 sl /$21k cash advance/ 39 years (I was fortunate to be added to my elderly relatives account)

Lender's practices. Period.

Re: Cash advance limits

Ficoproblems247 — Thu, 10 Jun 2021 04:18:43 GMT

@Anonymous wrote:
@Anonymous wrote:
Thank you for the info. I was wondering about that Amex. They're kinda particular.
I have a $400 limit on my $5K BCE, $200 on my $3K Cash Magnet, $2800 on my $14K Business Amazon Prime. They definitely don't like cash advances and you can tell because of the small limit and the fact you can't even see your cash advance limit easily on the website. I had to look at a statement for the two personal cards and my mailed documentation for my business card since a statement hasn't generated for that one yet to figure out what they were.

@Anonymous you've got it made with those AMEX CA limits! 😂 Look at my BCP!

Re: Cash advance limits

Anonymous — Thu, 10 Jun 2021 04:19:14 GMT

@Ficoproblems247 wrote:
@Anonymous wrote:
@Anonymous wrote:
Thank you for the info. I was wondering about that Amex. They're kinda particular.
I have a $400 limit on my $5K BCE, $200 on my $3K Cash Magnet, $2800 on my $14K Business Amazon Prime. They definitely don't like cash advances and you can tell because of the small limit and the fact you can't even see your cash advance limit easily on the website. I had to look at a statement for the two personal cards and my mailed documentation for my business card since a statement hasn't generated for that one yet to figure out what they were.
@Anonymous you've got it made with those AMEX CA limits! 😂 Look at my BCP!

I think the limit is set when you open the card instead of growing with it like other cards do. Was that card originally a lot lower? Like $1500-2K or thereabouts?

Re: Cash advance limits

LooksAreDeceiving — Wed, 09 Jun 2021 22:21:22 GMT

My Cash Magnet (10k CL) has a cash advance limit of 2,000 -- both limits which I've had since I received the card about a year and a half ago.

Based on the few AMEX responses in this thread, there seems to be no rhyme or reason to their method. Are there different underwriting criteria for cash advances? It appears seemingly random.

I need to find that other thread that was alluded to...

Re: Cash advance limits

Ficoproblems247 — Thu, 10 Jun 2021 04:19:46 GMT

@Anonymous wrote:
@Ficoproblems247 wrote:
@Anonymous wrote:
@Anonymous wrote:
Thank you for the info. I was wondering about that Amex. They're kinda particular.
I have a $400 limit on my $5K BCE, $200 on my $3K Cash Magnet, $2800 on my $14K Business Amazon Prime. They definitely don't like cash advances and you can tell because of the small limit and the fact you can't even see your cash advance limit easily on the website. I had to look at a statement for the two personal cards and my mailed documentation for my business card since a statement hasn't generated for that one yet to figure out what they were.
@Anonymous you've got it made with those AMEX CA limits! 😂 Look at my BCP!

I think the limit is set when you open the card instead of growing with it like other cards do. Was that card originally a lot lower? Like $1500-2K or thereabouts?

Yup, 2K. Looks like this one doesn't change with you as the limit grows. I know better than to use CA from any of my cards, but I always chuckle when I see this one.

Re: Cash advance limits

W261w261 — Thu, 10 Jun 2021 01:01:56 GMT

If I were a card issuer, I would wonder about the implications of a customer getting a cash advance, like how close are they to the edge? There are of course many reasons to do so, but still...

Re: Cash advance limits

Anonymous — Thu, 10 Jun 2021 00:55:53 GMT

@W261w261 wrote:
If I were a card issuer, I would wonder about the implications of a customer getting a cash advance, like how close are they to the edge?

That is exactly why banks aren't fond of them. Credit unions tend to promote them and make them more accessible with lower interest rates and low or no fees but banks want no part of it.

Using them isn't always indicative of trouble brewing though. I occasionally use them when I need some quick cash rather than transfer out of savings and I've got 36% of my annual income in savings right now.

Re: Cash advance limits

Lebrunrf — Thu, 10 Jun 2021 05:42:37 GMT

Thats hilarious for that CL

Re: Cash advance limits

RickNATL — Thu, 10 Jun 2021 06:20:08 GMT

It seems Amex is quick to penalize you for using cash advances as well...

Re: Cash advance limits

SOGGIE — Sat, 26 Jun 2021 13:39:42 GMT

Some cardholders have the option to request a cash advance limit increase. Probably the best time to do so is while requesting a CLI. I did with a bank, but I did not withdraw the funds after viewing the rates. That makes me wonder about which credit unions offer the best rate for cash advances.

Re: Cash advance limits

rbentley — Sat, 26 Jun 2021 14:19:40 GMT

I have always wondered what the process was for taking a cash advance, not that I have any plans to do so. Do people do it through an ATM, and if so, aren't you limited to the daily withdrawal amounts of $200 - $300. Or, do you go into any bank and present your card and ask for a cash advance on it?

Re: Cash advance limits

SouthJamaica — Sat, 26 Jun 2021 14:44:57 GMT

@rbentley wrote:
I have always wondered what the process was for taking a cash advance, not that I have any plans to do so. Do people do it through an ATM, and if so, aren't you limited to the daily withdrawal amounts of $200 - $300. Or, do you go into any bank and present your card and ask for a cash advance on it?

You can go into a bank, and present the card and your drivers license to the teller.