It's also worth noting that there are a lot of reports of Amex not liking it when people do cash advances on their cards. Most of the cards allow it, but they're meant more for an absolute emeregency. If I needed a cash advance, I would much rather just use a convenience check from another lender.
In line with what @K-in-Boston said, cash advances tell a lender that you are short on cash, because -- why else would you need a high interest cash loan?
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@sarge12 wrote:
@Anonymous wrote:Hi! Can someone explain to me what exactly a cash advance is fro Amex? I know the basics. I have a 200 dollar one, so I can go to an ATM and take out 200 dollars. But im wondering things like... A. Does it affect your credit? B. How do you pay it back? C. Does it just go on your statement as a normal charge? Any info you can share is greatly apprecitated! Thanks!
A cash advance on a credit card is one of the things I would advise to just say no to. It differs from a normal sale charge in that the interest is generally higher and starts accruing immediately...no grace period!!! It is better than a finance company or payday loan usually, but not much! Just don't do it...pretend that cash advances on credit cards do not exist, it is a ridiculously expensive loan in most cases.
Yep it's essentially an on-demand payday loan. For this reason I killed the cash advance line on all the cards that would let me drop it to 0. (BoA can't/won't drop it below $200 for some reason)
Questions to ask yourself before taking the cash advance:
1) Can I use the credit card to pay for the item I want to buy? Some merchants absolutely won’t take credit.
2) Can I use a debit card instead?
3) Why did I not bring more local currency on my trip? I was in São Paulo BR four years ago on business, with some personal sightseeing planned I converted something like $500 over to Reals. Turns out one of the cab rides did not take cards at all, a one-way trip to Alphaville late at night, so I used a large portion of my Reals to pay on the spot. When you really need the cash advance, it may not be possible to get to a cash machine, so plan ahead.
1) Can I use the credit card to pay for the item I want to buy? Some merchants absolutely won’t take credit.
2) Can I use a debit card instead?
3) Why did I not bring more local currency on my trip? I was in São Paulo BR four years ago on business, with some personal sightseeing planned I converted something like $500 over to Reals. Turns out one of the cab rides did not take cards at all, a one-way trip to Alphaville late at night, so I used a large portion of my Reals to pay on the spot. When you really need the cash advance, it may not be possible to get to a cash machine, so plan ahead.
