Anybody know why most CC applications ask you, "how many times in the past 6 months have you taken a cash advance from any of your credit cards?" Is taking a cash advance seen as a negative factor in the application process? I believe I inquired about this before, but never received a clear answer.
Current Score: EX: 718, EQ: 715, TU: 720
Frequent cash advances are a sure sign of t-r-o-u-b-l-e. My sense they are mostly intended for emergencies, like when you're traveling and get your cash ripped off. It is a very expensive way to borrow money and almost all CCC's limit your ability to go down that rat whole. Many years ago when this was not the case, people frequently got themselves into trouble gambling in Vegas on CC's.
Interesting. Quite frankly, I use cash advances occassionally on 2 or 3 of my cards. However, not for personnal use. I advance $1000 or $2000 at a time (sometimes more) when the business is low on funds and/or AR is slow paying. I generally just use them as a float for 2 or 3 weeks as needed. I do not recall the costs, but generally the advance fees aren't much more than $10 or $15 each. On my NFCU card the interest on cash advances range from 12.9% to 14.9%. I PIF all my cards each month and NEVER advance money over the long term.
Anyways, overall the costs aren't that unreasonable, especially when allocated as a business expense.
Those are great rates on cash advances. Usually in the 20%+ range. Wouldn't a BLOC be even a better option?
@b_diddy wrote:Those are great rates on cash advances. Usually in the 20%+ range. Wouldn't a BLOC be even a better option?
Yes, under normal circumstances. My credit scores are reasonable, but unfortunately I have a BK and unpaid tax liens from a prior business (now against me personally). They are both aged, but credit lines are still difficult to obtain for me. NFCU had no problem giving me a CL of $20,000 on my goRewards card, but denied me for their CLOC. I will probably try again in a few months as my membership with them is only 5 months new. For now, if the business is low on cash, credit cards are my only option.
@BackInTheSaddleAgain wrote:
@b_diddy wrote:Those are great rates on cash advances. Usually in the 20%+ range. Wouldn't a BLOC be even a better option?
Yes, under normal circumstances. My credit scores are reasonable, but unfortunately I have a BK and unpaid tax liens from a prior business (now against me personally). They are both aged, but credit lines are still difficult to obtain for me. NFCU had no problem giving me a CL of $20,000 on my goRewards card, but denied me for their CLOC. I will probably try again in a few months as my membership with them is only 5 months new. For now, if the business is low on cash, credit cards are my only option.
Understand ... sometimes we have to do what we have to do to make it all work.