Discover Denied CLI due to Cash Advance

[UncleB]

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@delaney1 wrote:

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@UncleB wrote:

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@14Fiesta wrote:

So does Discover carry this "anti cash advance" attitude for their cash back at checkout option too? I have used that a few times because it was convenient and I'd hate to think it hurts my standing with them.

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No, you should be fine. 

They call that "Cash Over" and it's not the same as a cash advance, at least not in Discover's eyes.

https://www.discover.com/credit-cards/member-benefits/cash-over-purchases.html

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I wonder why they don't consider it a ca. There's really no difference other then the name and withdrawal limits.

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I agree sometimes their logic is a bit of a mystery... like how a balance transfer isn't considered a cash advance, even if they send the funds directly to your bank account... that's about as close to a cash advance as you can get, yet it's though of differently.

Sometimes the whole "if it quacks like a duck..." goes completely out the window. 

[pipeguy]

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@n777ua wrote:

I'll never understand why lenders give you a CA option if they frown upon it.  I've heard several stories of AA, CLI's denied etc over the years due to using a CA on a card.  I'm convinced the only reason the option is even there is just so the banks have another tool to determine if you are a good risk or not.  

"Oh, he/she has so little cash they need to use our card, no credit for you!" 

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Thats the catch 21 for regular cards, however Credit Unions at least DCU and Congressional FCU treat cash advances as just another sale/swipe. I use those cards all the time for cash and there has never been any AA because of it - frankly both promote their "cash access" on their sites. There is no fee and if there is a drawback it thats they start to charge interest at once, both are low APR cards so its usually less than $1 in interest. Diner's Club MC limits you to $200 a day, but they don't seem to care if you take cash advances on their card either. I wouldn't think of using one of my other MC/V cards for a cash advance. Best way to do a cash advance through Discover is to do a Balance Transfer directly to you checking account through one of their promotions - of course that won't help you when you are stuck at an airport, but I never travel without at least 3 cards from 3 different lenders. 

https://www.dcu.org/loans/visa-platinum.html

No Fee or Higher Rate for Cash Advances – Cash advances are free! Get advances 24-hours a day from any ATM displaying the Visa logo or by calling DCU or through Online Banking. Easily transfer money to any of your DCU Checking or Savings accounts or have a check mailed to you. Plus, we offer cash advances up to $200 per day at participating hotels.

[taxi818]

It might not be fair but life is not fair. This is the biggest no no ever. sure they offer it to you. But they never ever want  you to take it. Instead Discover will allow you to do a BT Balance transfer into your checking account with no issues what so ever. Im doing one right before i travel. They sent me two checks.

[Imperfectfuture]

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@CreditMagic7 wrote:

That's actually a fairly well known NO NO very often warned against in these forums (and others) with any lender in spite of no matter how well we manage our card accounts otherwise.

I dunno exactly why but it immediately RAISES A RED DANGER FLAG doing any cash advances and makes for strikes against cardholders who do them.

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Best to have a credit union card for those.  Some (like mine) even come with no foreign transaction fee.

[Discover2016]

That's strange, Discover has been pretty good to me about cash advances. I usually get one every other month in case a restaurant doesn't accept cc's and since I don't carry my ATM cards. Not only do they give me auto CLI's but my cash advance limit has grown to 100% of my card limit. That being said, I will never get a cash advance from Chase, BofA or Amex.