Cash advance question

[Anonymous]

I just set up PIN's on my 2 Cap 1 cards in case of an emergency. I am curious, I know that they are hit with the full APR regardless of the intro rate, have no grace period and carry a fee, but I wanted to know if they act like regular charges beyond that? If I ever need one, could I just pay it off well before the statement date and accrue no additional charges besides the fee?

[iv]

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@Anonymous wrote:

I just set up PIN's on my 2 Cap 1 cards in case of an emergency. I am curious, I know that they are hit with the full APR regardless of the intro rate, have no grace period and carry a fee, but I wanted to know if they act like regular charges beyond that? If I ever need one, could I just pay it off well before the statement date and accrue no additional charges besides the fee?

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No.  That's what "no grace period" means - you'll pay the fee, plus the accrued interest from the day of the advance to the day you pay it.

Doesn't matter when the statement cuts - that only affects charges that have a grace period.

[Anonymous]

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@iv wrote:

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@Anonymous wrote:

I just set up PIN's on my 2 Cap 1 cards in case of an emergency. I am curious, I know that they are hit with the full APR regardless of the intro rate, have no grace period and carry a fee, but I wanted to know if they act like regular charges beyond that? If I ever need one, could I just pay it off well before the statement date and accrue no additional charges besides the fee?

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No.  That's what "no grace period" means - you'll pay the fee, plus the accrued interest from the day of the advance to the day you pay it.

Doesn't matter when the statement cuts - that only affects charges that have a grace period.

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I thought the grace period was the time between the statement posting and the due date?

[OmarGB9]

For regular purchases, yes. But cash advances have no grace period; they accrue interest from the day you take out the cash.

[iv]

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@Anonymous wrote:
I thought the grace period was the time between the statement posting and the due date?

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Nope.

If you are not carrying a balance on the card, the grace period is the time between the date of the charge and the due date, during which you are not charged any interest on the balance.  (If you are carrying a balance month-to-month, the grace period generally does not apply, and interest is charged from the transaction date.)

For a cash advance with no grace period, you will be paying the cash advance interest rate on that balance from the transaction date to the day you pay it off. 

[Anonymous]

OK, got it. Thanks for clearing that up. I hope to never need it, but I figured I better know what's what.

[Kevin86475391]

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@Anonymous wrote:

I just set up PIN's on my 2 Cap 1 cards in case of an emergency. I am curious, I know that they are hit with the full APR regardless of the intro rate, have no grace period and carry a fee, but I wanted to know if they act like regular charges beyond that? If I ever need one, could I just pay it off well before the statement date and accrue no additional charges besides the fee?

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Also worthy of note is that for most cards it's essentially more than the 'full APR.' Most cards charge a higher cash advance APR than regular APR. So hypothetically you might have a 0% intro APR, an 18% regular APR, and a 26% cash advance APR.