topic Re: Cash Advance QS Cap One Calculation? in Credit Cards

Cash Advance QS Cap One Calculation?

youngandcreditwrthy — Tue, 30 Jan 2024 16:47:54 GMT

Good morning,

I am considering taking a cash advance on my QS. Of course, I understand there's a 3% but the APR is the same as purchases (and currently I pif).

so let's say I take a cash advance - the fee gets charged and interest begins accruing, but instead of paying the balance in full (including purchase and cash advance) I make a payment mid cycle to pay down the cash advance...

hypothetically, let's say I have a purchases balance of 2000 and a cash advance balance of 1000 and the payment I make will be 1000. (and then I'll pif the purchases by the due date to avoid interest)
If I'm making a payment mid cycle with the intent for it to go to the Cash Advance balance, but no statement has generated, will it in fact go to the Cash Advance Balance? Remember they are the same rate, but one is already accruing and one is not ? I don't need to take a Cash Advance, but was considering it on a trip that's coming up because it could help me save time/possibly be easier. 3% fee okay, but I obviously want to pay down that Cash Advnce balance ASAP and I don't know how the Card Act or other circa 2010 post GFC legislation applies in this case. It seems like some creditors' systems don't account for paying down a balance mid cycle, plus there's the issue of.. Cash Advance and Purchase APR are the same on this card, but one has always been pif.. so wouldn't Cash Advnces still be the higher APR because it's actually being assessed (always pif regardless)..daily interest of almost 30% is killer
Am I at risk of being charged interest on the cash advance (which begins immmediately) for what I would normally have as my grace period for Purchases?

Surely someone understands what I mean here! lol... I took a cash advance one time before (cant remember what bank) and they would not in any terms reverse the fees. There was literally zero chance. lol

Thnks for any replies

Re: Cash Advance QS Cap One Calculation?

Shmike — Tue, 30 Jan 2024 22:55:33 GMT

Yes it's my understanding that the interest from a cash advance starts accruing daily, immediately! Also the interest doesn't stop accruing on said cash advance until the card is paid in full - not just paying back the cash advance balance. The entirety of the card has to be paid off before it stops accruing interest on the cash advance. I hope this helps

Re: Cash Advance QS Cap One Calculation?

ptatohed — Tue, 30 Jan 2024 23:40:11 GMT

Are you sure the Cash Advance fee is only 3%? I think it may be 5%.

Re: Cash Advance QS Cap One Calculation?

Brian_Earl_Spilner — Wed, 31 Jan 2024 00:01:08 GMT

Why don't you call or chat and ask? Will probably be faster than waiting for an answer and each lender handles it differently. There is nothing in the T&C or CARD Act that applies to your scenario so reaching out is best.

Re: Cash Advance QS Cap One Calculation?

Brian_Earl_Spilner — Wed, 31 Jan 2024 00:06:31 GMT

@Shmike wrote:
Yes it's my understanding that the interest from a cash advance starts accruing daily, immediately! Also the interest doesn't stop accruing on said cash advance until the card is paid in full - not just paying back the cash advance balance. The entirety of the card has to be paid off before it stops accruing interest on the cash advance. I hope this helps

This is not true for cap1. The minimum payment will be split between the balance and cash advance. Once the cash advance and related fees are paid, it's done. Up to that point you'll see two interest charges. One for balance, one for advance. Once the advance is paid, you'll start seeing the balance interest only. I had to take a cash advance in an emergency and that's how cap1 handled it. Other lenders like navy are the same way. Others will lump them all together and you'll have to look at your statement for the interest breakdown.

Re: Cash Advance QS Cap One Calculation?

Traveler101 — Wed, 31 Jan 2024 00:44:30 GMT

I've done the cash advances on capital one. I don't carry cash all the time so it was for convenience. Intrest accrues from the day of the advance. In simple terms I would pay off my entire bill even before the due date. I would have a 0 balance. When the next statement appears it will have the Intrest that was accrued as a balance owing. I avoided that by slightly overpaying my account that would cover any intrest charge. Hope that helps.

Re: Cash Advance QS Cap One Calculation?

youngandcreditwrthy — Wed, 31 Jan 2024 16:14:26 GMT

@ptatohed yeah my T&C say 3%.

Id pay it before a statement generated, but I leave a lot of $ in a 5% APR account so while my grace period on Purchase is in effect, I'm getting 5% interest. @Traveler101 that's an interesting point that they could charge me that crazy interest 30% on the cash advance fee too.

I pay the card in full every month and have. Like I said Id take the cash advance and pay it off before a statement would even have time to cut (But I do enjoy having the 25 day grace period on purchases to pay in full so I dont wnna pay purchases in full before the grace periods up cause Im getting 5% interest in a savings account).

Maybe I just won't fool with the cash advance "feature" LOL

Thanks yall!

Re: Cash Advance QS Cap One Calculation?

CorpCrMgr1 — Wed, 31 Jan 2024 16:28:36 GMT

How would it work with the Wal-Mart store card? The little pay screen inquiries if I want a few dollars. Is that handled the same way? Asking for a friend.😁

Re: Cash Advance QS Cap One Calculation?

youngandcreditwrthy — Wed, 31 Jan 2024 16:30:25 GMT

@CorpCrMgr1 that counts as a purchase!!! I miss that feature with that card and the discover IT

Re: Cash Advance QS Cap One Calculation?

CorpCrMgr1 — Wed, 31 Jan 2024 16:33:06 GMT

Thank you. Never have I done it. I'm going to the next time I shop at WM.

Re: Cash Advance QS Cap One Calculation?

Shmike — Wed, 31 Jan 2024 16:33:29 GMT

Oh I didn't know that was the case with Capital One. I may be conflating them with First Premier, they charge you until the balance is paid off, in its entirety. Good to know thanks!