topic Re: Cash Advances in Credit Cards

Cash Advances

Carloscda40 — Fri, 11 Mar 2011 04:01:47 GMT

Do credit card companys frown unpon this even if it's paid off within a week?

Does it help with score?

Re: Cash Advances

tsquad131 — Fri, 11 Mar 2011 06:39:38 GMT

i think it just shows more riskier behavior to them

Re: Cash Advances

Anonymous — Fri, 11 Mar 2011 07:09:07 GMT

Not necessarily with my BofA experience

When I had my very first credit card with BofA 3 years ago at the age of 18, I took out $700 cash advance without knowing the consequence. Once I realized I was getting hit with multiple cash advance fees, I had the payments made within months. After paying all the ridiculous fees, I called BofA for a higher CLI. Immediately the CSR congratulated on my recent payments and gave the CLI I asked for.

IMO most creditors do find cash advance as a red flag, but at the same time they're benefiting from the fees.

Recently BofA has been offering me 0% cash advance until 2012 with a 4% transaction fee( It's similar to balance transfer ).

Not taking that bait

Re: Cash Advances

score_building — Fri, 11 Mar 2011 12:04:31 GMT

One major with perhaps a lower incidence of AA in response to cash advance is Cap1 from what I've seen, otherwise could save fees and major headache by using a low rate CU card. Generally viewed as high risk behavior no matter what current profile looks like though some may slip by without incident based on other strengths. Not worth the risk of AA, to do it with a bank generally speaking.

Re: Cash Advances

DI — Fri, 11 Mar 2011 13:01:11 GMT

@Carloscda40 wrote:
Do credit card companys frown unpon this even if it's paid off within a week?

Does it help with score?

No they do not. They wouldn't offer the service if they didn't want you to use it. Just pay whatever cash advance you get in full within 30 days.

Re: Cash Advances

score_building — Fri, 11 Mar 2011 13:55:19 GMT

@DI wrote:

@Carloscda40 wrote:
Do credit card companys frown unpon this even if it's paid off within a week?

Does it help with score?
No they do not. They wouldn't offer the service if they didn't want you to use it. Just pay whatever cash advance you get in full within 30 days.

Incorrect.

Re: Cash Advances

DI — Fri, 11 Mar 2011 15:50:36 GMT

@score_building wrote:

@DI wrote:

@Carloscda40 wrote:
Do credit card companys frown unpon this even if it's paid off within a week?

Does it help with score?
No they do not. They wouldn't offer the service if they didn't want you to use it. Just pay whatever cash advance you get in full within 30 days.

Incorrect.

Back during my college years when I got my first Citi card, I got cash advances all the time. Every 3 months I had CLIs waiting on me.

Re: Cash Advances

score_building — Fri, 11 Mar 2011 15:57:43 GMT

@DI wrote:
@score_building wrote:

@DI wrote:

@Carloscda40 wrote:
Do credit card companys frown unpon this even if it's paid off within a week?

Does it help with score?
No they do not. They wouldn't offer the service if they didn't want you to use it. Just pay whatever cash advance you get in full within 30 days.

Incorrect.

Back during my college years when I got my first Citi card, I got cash advances all the time. Every 3 months I had CLIs waiting on me.

YMMV. However as PP it is generally viewed as a red flag which can result in AA in some cases.

Re: Cash Advances

tsquad131 — Fri, 11 Mar 2011 16:00:26 GMT

the fees arent worth it to me when using a bank for cash advances. I use my 2 local CU's Visa's for Cash advances if needed since its a fee free

Re: Cash Advances

DI — Fri, 11 Mar 2011 16:03:30 GMT

@tsquad131 wrote:
the fees arent worth it to me when using a bank for cash advances. I use my 2 local CU's Visa's for Cash advances if needed since its a fee free

They're sure not! I didn't no any better 10 years ago. I was just a starving college student.

Re: Cash Advances

Anonymous — Fri, 11 Mar 2011 17:40:51 GMT

I dunno. Im not with the conspiracy theory-ists that believe its a set up for CLD's, AA, or even account closure. I put this is the same catagory as "using your Amex at WalMart increases your chances greatly for AA". I havent seen an explaination why a company like Amex would punish their customers for using the card at a company who's gift cards are offered by Amex in their mall! I also havent read why a CC company would intentionally punish their customers for using a service they readily offer (cash advance).

Using this logic, we could say things like "Dont PIF on your CC because I did and I got a CLD!" Sure, these things happen. But I certainly wouldnt say these things increase the possibility of anything just because a handful of people had a bad experience. Hell...I could find Honda and Toyota owners who have had a nightmare of a time with their cars. But that doesnt mean they are bad cars.

Correlation does not imply causation.

Re: Cash Advances

score_building — Fri, 11 Mar 2011 17:53:11 GMT

@Anonymous wrote:
I dunno. Im not with the conspiracy theory-ists that believe its a set up for CLD's, AA, or even account closure. I put this is the same catagory as "using your Amex at WalMart increases your chances greatly for AA". I havent seen an explaination why a company like Amex would punish their customers for using the card at a company who's gift cards are offered by Amex in their mall! I also havent read why a CC company would intentionally punish their customers for using a service they readily offer (cash advance).

Using this logic, we could say things like "Dont PIF on your CC because I did and I got a CLD!" Sure, these things happen. But I certainly wouldnt say these things increase the possibility of anything just because a handful of people had a bad experience. Hell...I could find Honda and Toyota owners who have had a nightmare of a time with their cars. But that doesnt mean they are bad cars.

Correlation does not imply causation.

FTR It is NOT the same thing as using your amex at walmart, for better of worse it is proven fact that most major issuers view cash advances as a red flag-sorry...

Is any of your speculation based on experience?

Re: Cash Advances

DI — Fri, 11 Mar 2011 17:55:05 GMT

@score_building wrote:
@Anonymous wrote:
I dunno. Im not with the conspiracy theory-ists that believe its a set up for CLD's, AA, or even account closure. I put this is the same catagory as "using your Amex at WalMart increases your chances greatly for AA". I havent seen an explaination why a company like Amex would punish their customers for using the card at a company who's gift cards are offered by Amex in their mall! I also havent read why a CC company would intentionally punish their customers for using a service they readily offer (cash advance).

Using this logic, we could say things like "Dont PIF on your CC because I did and I got a CLD!" Sure, these things happen. But I certainly wouldnt say these things increase the possibility of anything just because a handful of people had a bad experience. Hell...I could find Honda and Toyota owners who have had a nightmare of a time with their cars. But that doesnt mean they are bad cars.

Correlation does not imply causation.
FTR It is NOT the same thing as using your amex at walmart, for better of worse it is proven fact that most major issuers view cash advances as a red flag-sorry...

Is any of your speculation based on experience?

I don't see that in any of my credit card agreement letters.

Re: Cash Advances

score_building — Fri, 11 Mar 2011 18:29:47 GMT

@DI wrote:
@score_building wrote:
@Anonymous wrote:
I dunno. Im not with the conspiracy theory-ists that believe its a set up for CLD's, AA, or even account closure. I put this is the same catagory as "using your Amex at WalMart increases your chances greatly for AA". I havent seen an explaination why a company like Amex would punish their customers for using the card at a company who's gift cards are offered by Amex in their mall! I also havent read why a CC company would intentionally punish their customers for using a service they readily offer (cash advance).

Using this logic, we could say things like "Dont PIF on your CC because I did and I got a CLD!" Sure, these things happen. But I certainly wouldnt say these things increase the possibility of anything just because a handful of people had a bad experience. Hell...I could find Honda and Toyota owners who have had a nightmare of a time with their cars. But that doesnt mean they are bad cars.

Correlation does not imply causation.
FTR It is NOT the same thing as using your amex at walmart, for better of worse it is proven fact that most major issuers view cash advances as a red flag-sorry...

Is any of your speculation based on experience?
I don't see that in any of my credit card agreement letters.

lol

Re: Cash Advances

Anonymous — Fri, 11 Mar 2011 19:27:02 GMT

@score_building wrote:
@Anonymous wrote:
I dunno. Im not with the conspiracy theory-ists that believe its a set up for CLD's, AA, or even account closure. I put this is the same catagory as "using your Amex at WalMart increases your chances greatly for AA". I havent seen an explaination why a company like Amex would punish their customers for using the card at a company who's gift cards are offered by Amex in their mall! I also havent read why a CC company would intentionally punish their customers for using a service they readily offer (cash advance).

Using this logic, we could say things like "Dont PIF on your CC because I did and I got a CLD!" Sure, these things happen. But I certainly wouldnt say these things increase the possibility of anything just because a handful of people had a bad experience. Hell...I could find Honda and Toyota owners who have had a nightmare of a time with their cars. But that doesnt mean they are bad cars.

Correlation does not imply causation.
FTR It is NOT the same thing as using your amex at walmart, for better of worse it is proven fact that most major issuers view cash advances as a red flag-sorry...

Is any of your speculation based on experience?

Is any of your speculation based on experience? Or anecdotal message board postings?

I can see if a shiny brand new CC is maxed from cash advances...but that doesnt mean cash advances themselves are a red flag. Again, correlation does not imply causation.

Re: Cash Advances

score_building — Fri, 11 Mar 2011 19:54:44 GMT

@Anonymous wrote:
@score_building wrote:
@Anonymous wrote:
I dunno. Im not with the conspiracy theory-ists that believe its a set up for CLD's, AA, or even account closure. I put this is the same catagory as "using your Amex at WalMart increases your chances greatly for AA". I havent seen an explaination why a company like Amex would punish their customers for using the card at a company who's gift cards are offered by Amex in their mall! I also havent read why a CC company would intentionally punish their customers for using a service they readily offer (cash advance).

Using this logic, we could say things like "Dont PIF on your CC because I did and I got a CLD!" Sure, these things happen. But I certainly wouldnt say these things increase the possibility of anything just because a handful of people had a bad experience. Hell...I could find Honda and Toyota owners who have had a nightmare of a time with their cars. But that doesnt mean they are bad cars.

Correlation does not imply causation.
FTR It is NOT the same thing as using your amex at walmart, for better of worse it is proven fact that most major issuers view cash advances as a red flag-sorry...

Is any of your speculation based on experience?
Is any of your speculation based on experience? Or anecdotal message board postings?

I can see if a shiny brand new CC is maxed from cash advances...but that doesnt mean cash advances themselves are a red flag. Again, correlation does not imply causation.

One can counter facts with speculation if so desire, though preferably not by misleading unsuspecting newbies.

Re: Cash Advances

Anonymous — Fri, 11 Mar 2011 19:59:03 GMT

@score_building wrote:

@Anonymous wrote:
@score_building wrote:
@Anonymous wrote:
I dunno. Im not with the conspiracy theory-ists that believe its a set up for CLD's, AA, or even account closure. I put this is the same catagory as "using your Amex at WalMart increases your chances greatly for AA". I havent seen an explaination why a company like Amex would punish their customers for using the card at a company who's gift cards are offered by Amex in their mall! I also havent read why a CC company would intentionally punish their customers for using a service they readily offer (cash advance).

Using this logic, we could say things like "Dont PIF on your CC because I did and I got a CLD!" Sure, these things happen. But I certainly wouldnt say these things increase the possibility of anything just because a handful of people had a bad experience. Hell...I could find Honda and Toyota owners who have had a nightmare of a time with their cars. But that doesnt mean they are bad cars.

Correlation does not imply causation.
FTR It is NOT the same thing as using your amex at walmart, for better of worse it is proven fact that most major issuers view cash advances as a red flag-sorry...

Is any of your speculation based on experience?
Is any of your speculation based on experience? Or anecdotal message board postings?

I can see if a shiny brand new CC is maxed from cash advances...but that doesnt mean cash advances themselves are a red flag. Again, correlation does not imply causation.
One can counter facts with speculation if so desire, though preferably not by misleading unsuspecting newbies.

Look. Im not trying to spread misinformation. But can you provide links to your "fact" that cash advances are a rted flag to credit card issuers? I would consider fact as a statement issued by banks or credit card issuers...or something similar. Ive spent 30 minutes googling, and other than anecdotal evidence, such as this thread, no where do I find anything that suggests this. Other than what Ive already acknowledged (new accounts maxed right away suggesting fraud).

Thanks in advance.

Re: Cash Advances

DI — Fri, 11 Mar 2011 20:00:46 GMT

We all have exhausted this topic. Let's move on. DI

Re: Cash Advances

Anonymous — Fri, 11 Mar 2011 20:13:22 GMT

@score_building wrote:
@Anonymous wrote:
I dunno. Im not with the conspiracy theory-ists that believe its a set up for CLD's, AA, or even account closure. I put this is the same catagory as "using your Amex at WalMart increases your chances greatly for AA". I havent seen an explaination why a company like Amex would punish their customers for using the card at a company who's gift cards are offered by Amex in their mall! I also havent read why a CC company would intentionally punish their customers for using a service they readily offer (cash advance).

Using this logic, we could say things like "Dont PIF on your CC because I did and I got a CLD!" Sure, these things happen. But I certainly wouldnt say these things increase the possibility of anything just because a handful of people had a bad experience. Hell...I could find Honda and Toyota owners who have had a nightmare of a time with their cars. But that doesnt mean they are bad cars.

Correlation does not imply causation.
FTR It is NOT the same thing as using your amex at walmart, for better of worse it is proven fact that most major issuers view cash advances as a red flag-sorry...

Is any of your speculation based on experience?

I suggest you prove it. Or we will assume it is nonsense!

Re: Cash Advances

score_building — Fri, 11 Mar 2011 23:29:19 GMT

@Anonymous wrote:

@score_building wrote:
@Anonymous wrote:
I dunno. Im not with the conspiracy theory-ists that believe its a set up for CLD's, AA, or even account closure. I put this is the same catagory as "using your Amex at WalMart increases your chances greatly for AA". I havent seen an explaination why a company like Amex would punish their customers for using the card at a company who's gift cards are offered by Amex in their mall! I also havent read why a CC company would intentionally punish their customers for using a service they readily offer (cash advance).

Using this logic, we could say things like "Dont PIF on your CC because I did and I got a CLD!" Sure, these things happen. But I certainly wouldnt say these things increase the possibility of anything just because a handful of people had a bad experience. Hell...I could find Honda and Toyota owners who have had a nightmare of a time with their cars. But that doesnt mean they are bad cars.

Correlation does not imply causation.
FTR It is NOT the same thing as using your amex at walmart, for better of worse it is proven fact that most major issuers view cash advances as a red flag-sorry...

Is any of your speculation based on experience?
I suggest you prove it. Or we will assume it is nonsense!

can assume whatever you want, but can't speak for others. Seems to be some confusion, so will try to briefly explain. Cash advances from cc are generally viewed as high risk behavior, since they typically come with high fees and APR... If someone needs to prove to you the fact that this may serve as a red flag to major issuers (since it indicates that a card holder may be in financial trouble) doubt it would be worth the effort. Never mind that my work for several years at a top law firm which includes several major banks (which I have worked with extensively on a variety of transactional matters/ public offerings) as clients' has supported this 'nonsense!'