Cashing a Check from Your Credit Card Questions?

[Anonymous]

This concept I cannot understand.

Is it a cash advance?

Is it a transfer?

What APR do they use?

How does this work?   

[Anonymous]

As far as I know it is like a cash advance so you would be charged the cash advance apr. Its as if your getting cash since your not running it as credit.

[Anonymous]

The terms on these vary widely.  Read the fine print very carefully and it will specify whether they will treat it as a balance transfer at a special rate, a cash advance or if your regular purchase APR applies.

[Anonymous]

This all depends on what kind of check you have received from the company.  I know with my cap1 CC, they send me two different kinds of checks, one of which you can use at the same APR as purchasing with credit and the other would be considered a cash advance.  I always have to read the tiny,tiny,tiny fine print to decipher between the two, because they send them to me in the same envelope.

[Anonymous]

Two comments:

1) Some banks (and, I guess, credit unions) won't let you deposit (and, I assume cash) these kinds of checks. Wells Fargo, at least, won't accept them.

2) Besides taking out a credit card cash advance at the ATM, I learned from Wells Fargo that there's a second way you can do it. You can come inside the branch and have the teller process your credit card cash advance. It's been awhile since I was told about the details. But, if I remember correctly, they have a way of seeing how much available credit you have and then you can tell the teller exactly how much you want to withdraw .. so, if you want to withdraw 113.73, you can do that. To do the cash advance through this special method, I don't remember if there's a special form you have to fill out.

[Creditaddict]

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@Anonymous wrote:
Two comments:

1) Some banks (and, I guess, credit unions) won't let you deposit (and, I assume cash) these kinds of checks. Wells Fargo, at least, won't accept them.

2) Besides taking out a credit card cash advance at the ATM, I learned from Wells Fargo that there's a second way you can do it. You can come inside the branch and have the teller process your credit card cash advance. It's been awhile since I was told about the details. But, if I remember correctly, they have a way of seeing how much available credit you have and then you can tell the teller exactly how much you want to withdraw .. so, if you want to withdraw 113.73, you can do that. To do the cash advance through this special method, I don't remember if there's a special form you have to fill out.

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Going into the bank and charging on your credit card to take cash is FOR SURE A cash advance and a cash advance is the last thing I would want to do on ANY credit card right now... I think they are going to view it as a VERY HIGH RISK move.

[CreditAble]

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@Anonymous wrote:

This concept I cannot understand.

Is it a cash advance?

Is it a transfer?

What APR do they use?

How does this work?   

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I am not sure if you are referring to the Chase offer I mentioned in your OtherThread . In any case I will further explain why I suggested that you consider applying for the Chase card with 0% for 12 months.

Chase will send you a blank check as part of the welcome package when you obtain a 0% Balance Transfer for 12 months credit card.

That particular check is treated as a Balance Transfer and not a cash advance. Chase allows you to deposit the check into your own checking account and still treats the check as a 0% BT transaction. There is usually a $99 BT fee.

Technically you are not supposed to use a Chase Balance Transfer to pay a Chase credit card. If you chose to pay down an existing Chase credit card balance from your checking account after depositing the new 0% BT funds, it can be assumed that you used your money not Chase's money to pay the other Chase credit card.

Most other Banks will not allow you to deposit a BT check into your checking account. Those checks would be treated as cash advances with fees and higher interest. That is why I suggested that you check out the Chase offer.

 BoA was suggested by CreditAddict. That was a good suggestion however Chase will probably give you the same deal but also let you deposit the funds into your checking account. That way you have maximum flexibility to pay any balances on credit cards that you want to.

The BT funds (deposited into checking account) might even be enough to  write a check directly for your surgery..

If you are contemplating cashing a check sent from an existing credit card provider, some checks are issued with a special interest promo offfer. Frequently it is stated on the check that you must cash (deposit) the check by a certain date or the check will be processed as a regular "cash advance" at the higher standard interest rate.

Message Edited by CreditAble on 01-16-2009 04:46 PM