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0% cash advance 4 year

liveurlife
New Member

0% cash advance 4 year

hi everyone....would like some advice....i have a credit card with 0% interest rate on cash advances for a year....need to take out atleast 5500 to do some repairs on my engine....would like to know if you guys think it is a good idea or not to take it out....i do plan on paying a majority of it down before the interest rate goes up....if not all then leaving about 1000....what do u guys think....good or bad?????
Message 1 of 14
13 REPLIES 13
voidman
Established Contributor

Re: 0% cash advance 4 year


@liveurlife wrote:
hi everyone....would like some advice....i have a credit card with 0% interest rate on cash advances for a year....need to take out atleast 5500 to do some repairs on my engine....would like to know if you guys think it is a good idea or not to take it out....i do plan on paying a majority of it down before the interest rate goes up....if not all then leaving about 1000....what do u guys think....good or bad?????

 

Are you sure it is for cash advance and not for purchase?

 

if it is, it should not hurt in taking that loan, except a small drop in fico score if it increases your Util. 

-void
Message 2 of 14
liveurlife
New Member

Re: 0% cash advance 4 year

yea....i called and spoke with a rep....its a new think that boa is offering....how much of a dip in the score do u think will happen????
Message 3 of 14
voidman
Established Contributor

Re: 0% cash advance 4 year

I lost about 20-25 points across all CB when my util went from 9% to 35%, it was because I took a 1300 dollar cash loan for 1.99% from wamu.
-void
Message 4 of 14
liveurlife
New Member

Re: 0% cash advance 4 year

ouch....my score over 700...dont really want to take a 25 point hit....before u say try banks and credit unions....i have about 150k in law school loans and i am still in school....so the banks arent really touching me
Message 5 of 14
voidman
Established Contributor

Re: 0% cash advance 4 year

Well, now you have to decide between loseing fico points or save money by using that 0% loan, I go with the latter. Fico score is there to help you save money. So it will go down while in the process of saving money. 

 

btw, I regained most of the points after 3 months when the util went back below 9% 

-void
Message 6 of 14
liveurlife
New Member

Re: 0% cash advance 4 year

so do u think i will be able to get back to 700 after paying off the advane....i dont have any other payment besides my cell phone....thanks for the advice by the way
Message 7 of 14
voidman
Established Contributor

Re: 0% cash advance 4 year


@liveurlife wrote:
so do u think i will be able to get back to 700 after paying off the advane....i dont have any other payment besides my cell phone....thanks for the advice by the way

 

You may not get that exact score back, but you will be pretty close. 

 

My Fico was around 715 went down to 689, now it back at 705. I paid it off this month, so I expect it go up further, maybe 710. 

 

-void
Message 8 of 14
liveurlife
New Member

Re: 0% cash advance 4 year

thanks....you have been very helpful
Message 9 of 14
thrasher865
Valued Contributor

Re: 0% cash advance 4 year


@liveurlife wrote:
so do u think i will be able to get back to 700 after paying off the advane....i dont have any other payment besides my cell phone....thanks for the advice by the way
Yes, utilization does not affect your score long term.  So your score will be lower while you pay off the cash advance, but assuming nothing else about your credit changes, after you pay it off, your score should be exactly where it is now.  Even higher if you take into account the ageing your credit accounts will undergo in the meantime.

Starting Score: EQ: 665 - TU: 687
Current Score: EQ: 749 - TU: ---
Goal Score: EQ: 760 - TU: 760


Take the FICO Fitness Challenge
Message 10 of 14
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