topic Re: How does Cash Advance work? in Credit Cards

How does Cash Advance work?

Anonymous — Fri, 13 Jan 2012 23:16:09 GMT

Hi all! I recently got approved for a Capital One Spark Business card with a cl of $5000. And it says it has a cash limit of $2500.

The card also came with a pin number. Does that mean I can go to an ATM and withdraw cash from the card? and if so, how much?

I'm not actually going to do this, I was just wondering how that works.

Re: How does Cash Advance work?

visorboy1974 — Fri, 13 Jan 2012 23:22:49 GMT

@Anonymous wrote:
Hi all! I recently got approved for a Capital One Spark Business card with a cl of $5000. And it says it has a cash limit of $2500.
The card also came with a pin number. Does that mean I can go to an ATM and withdraw cash from the card? and if so, how much?

I'm not actually going to do this, I was just wondering how that works.

ATM limits are usually $300, but you can withdraw just like it's an ATM card or you can go to a financial institution and have them swipe the card to advance you more than the $300 at a time.

Fees should be included in the literature you received with the card...usually at least $10, up to 3%, whichever is greater.

Re: How does Cash Advance work?

Anonymous — Fri, 13 Jan 2012 23:25:20 GMT

Yeah a cash advance is basically withdrawing money from an ATM like with a debit card. One huge difference though there is a cash advance fee, and you start paying interest from the day you make the advance, no grace period.

I still can't find a reason why anyone would ever want a cash advance.

Re: How does Cash Advance work?

jamesdwi — Fri, 13 Jan 2012 23:33:37 GMT

@Anonymous wrote:
Yeah a cash advance is basically withdrawing money from an ATM like with a debit card. One huge difference though there is a cash advance fee, and you start paying interest from the day you make the advance, no grace period.

I still can't find a reason why anyone would ever want a cash advance.

+100000 + 3% fee

if where you are at doesn't take credit, find a place that does, or buy gift cards or what ever, its not worth the price of taking a cash advance fees and interest. or just pay cash.

Re: How does Cash Advance work?

Anonymous — Fri, 13 Jan 2012 23:48:57 GMT

Some cards don't charge any fee at all, like USAA. I've taken them in large amounts, like $2,500, and replaced the money a week later. It works for (and I believe this is the intended purpose) times when you need funds immediately and can't wait for things like a check clearing. Why would you be unable to wait? Think about uses like deposits on a rental property, brokerage transactions, a loan payoff by a certain date - make up your own example.

By the way, I've never done this via ATM. It was a transfer, fee-free, into my USAA checking. I then used the proceeds as needed and (I believe I was waiting for a deposited check to clear) when money was available in my checking (most likely another account, not USAA since I don't use their checking a lot and I primarlly bank elsewhere ), I put the money into my USAA checking and paid the cash advance back with one click.

It's a good feature.

Re: How does Cash Advance work?

learnin113 — Fri, 13 Jan 2012 23:57:25 GMT

Cash advances only exist to see how well u can ignore it. Do not touch it. Don't even look at it.

Re: How does Cash Advance work?

Anonymous — Sat, 14 Jan 2012 00:16:43 GMT

@learnin113 wrote:
Cash advances only exist to see how well u can ignore it. Do not touch it. Don't even look at it.

Re: How does Cash Advance work?

Smug — Sat, 14 Jan 2012 01:25:23 GMT

I would never use one....ever

Re: How does Cash Advance work?

ArisGreek — Sat, 14 Jan 2012 01:45:21 GMT

Cash Advances are for emergencies I think. I had to use it once. I was in Cairo and got pick pocketed. Fortunately, I had my credit cards in my front pocket. The stupid thing was all my money and ID was in my wallet in my BACK pocket. I had about $1,000 in US currency converted to foreign currency. DOH! Stupid stupid stupid! I was 23 at the time so about 8 years ago. I had no choice but to do a cash advance. It saved me since hardly any places but hotels took credit cards in Egypt.

Re: How does Cash Advance work?

Anonymous — Sat, 14 Jan 2012 01:52:48 GMT

Discover More card is absolutely the best card for cash advances. You can visit grocery chains such as Food Outlet, Ralphs, Safeway and even Walmart do what Discover calls a "cash over" your purchase. It is treated as a standard purchase with no ATM, Bank or other hidden fess. It is awesome!

Re: How does Cash Advance work?

Anonymous — Sat, 14 Jan 2012 01:55:02 GMT

@Anonymous wrote:
Discover More card is absolutely the best card for cash advances. You can visit grocery chains such as Food Outlet, Ralphs, Safeway and even Walmart do what Discover calls a "cash over" your purchase. It is treated as a standard purchase with no ATM, Bank or other hidden fess. It is awesome!

it is,,, and welcome to the forums

Re: How does Cash Advance work?

CS800 — Sat, 14 Jan 2012 01:56:31 GMT

Nice I didnt know that.

So it's like using debit for your payment and you ask the cashier like $20 cashback?

Re: How does Cash Advance work?

Anonymous — Sat, 14 Jan 2012 01:58:01 GMT

@CS800 wrote:
Nice I didnt know that.

So it's like using debit for your payment and you ask the cashier like $20 cashback?

60 at walmart

Re: How does Cash Advance work?

CS800 — Sat, 14 Jan 2012 02:00:42 GMT

@Anonymous wrote:
@CS800 wrote:
Nice I didnt know that.

So it's like using debit for your payment and you ask the cashier like $20 cashback?
60 at walmart

$60 is the min at WM or the min for a discover 'cashback'?

Re: How does Cash Advance work?

Anonymous — Sat, 14 Jan 2012 02:01:46 GMT

@CS800 wrote:
@Anonymous wrote:
@CS800 wrote:
Nice I didnt know that.

So it's like using debit for your payment and you ask the cashier like $20 cashback?
60 at walmart

$60 is the min at WM or the min for a discover 'cashback'?

max cash back at walmart

Re: How does Cash Advance work?

Anonymous — Sat, 14 Jan 2012 02:05:23 GMT

Thanks for the welcome from Dalebb and the forum. Actually, it is treated like a debit purchase and I did a cash over of $40 at Walmart last month and much more convenient than trying to find an ATM machine as already Christmas shopping. No hidden fees!

Re: How does Cash Advance work?

Anonymous — Sat, 14 Jan 2012 14:57:12 GMT

I did read about the "cash over" feature with the Discover card on their website, but totally forgot about it moments after reading it...I just happened to be perusing through all of the tabs on their site that day and came across it. IMO, cash advances are there for a reason...because sometimes you have an emergency and need cash. There is no shame in utilizing that feature on your card and I'm pretty certain credit card companies don't give a darn if you do. They're happy to charge you the fee and keep your business just the same. If I had a momentary cash flow issue and needed a cash advance to help myself out, then I would. It would be foolish of me not to. What's the point of having a credit card and not taking advantage of all of the benefits that it offers?

Re: How does Cash Advance work?

Gollum — Sat, 14 Jan 2012 15:21:11 GMT

@Anonymous wrote:
Hi all! I recently got approved for a Capital One Spark Business card with a cl of $5000. And it says it has a cash limit of $2500.
The card also came with a pin number. Does that mean I can go to an ATM and withdraw cash from the card? and if so, how much?

I'm not actually going to do this, I was just wondering how that works.

You would be able to use your credit card with your PIN at an ATM to obtain cash. Refer to your documents, call Capital One, or use the Capital One website to find out what your limits for cash are.

You should not use your credit card for cash, though.

For most credit cards, the interest rate for a cash advance is 25% - 30%.

A cash advance from a credit card is apparently a warning signal (to the credit card company) that can result in credit limit decreases that "chase you down:"

as you pay down your balance, your credit limit is decreased along with the amount of the balance that is paid off.

Re: How does Cash Advance work?

Anonymous — Sat, 14 Jan 2012 15:30:07 GMT

@Gollum wrote:
@Anonymous wrote:
Hi all! I recently got approved for a Capital One Spark Business card with a cl of $5000. And it says it has a cash limit of $2500.
The card also came with a pin number. Does that mean I can go to an ATM and withdraw cash from the card? and if so, how much?

I'm not actually going to do this, I was just wondering how that works.
You would be able to use your credit card with your PIN at an ATM to obtain cash. Refer to your documents, call Capital One, or use the Capital One website to find out what your limits for cash are.

You should not use your credit card for cash, though.

For most credit cards, the interest rate for a cash advance is 25% - 30%.

A cash advance from a credit card is apparently a warning signal (to the credit card company) that can result in credit limit decreases that "chase you down:"
as you pay down your balance, your credit limit is decreased along with the amount of the balance that is paid off.

Re: How does Cash Advance work?

frogfan12 — Sat, 14 Jan 2012 15:32:19 GMT

Except in extreme, dire situations, I would NEVER use a cash advance. I unknowingly used one back when I was in college and that interest was terrible because that's on top of other interest you're paying if you carry a balance. :/