How to pay back cash advance

[Anonymous]

Correct. Nobody else has to get screwed by banks like BoA like I did back when I was young and dumb and used cash advances without realizing they were the last thing that would get paid. 

The only exception is deferred interest offers that are expiring in the next two months will have the full payment applied to them unless you have specified otherwise to the creditor. 

[Anonymous]

Thanks all!!

Also I had no idea about the cash over feature so thanks for that info!

[UncleB]

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@Anonymous wrote:

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@Anonymous wrote:

Sorry for the dumb question...but I want to know how can I pay back a  cash advance (Discover). Do I just pay off some of the balance on my CC and the amount I pay will cover the cash advance?

TIA

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Just letting you know that Discover has a figure called "cash-over"  withdrawal without taking cash advance. It would be coded as purchase and standard card's APR applies.  Since i am not allowed to post links, Google " Discover Cash Over" from there it would explains how and where to withdraw cash without cash advance.

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It's fine to share the link to the Discover Card Cash Over explanation:  https://www.discover.com/credit-cards/member-benefits/cash-over-purchases.html

[Brian_Earl_Spilner]

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@Anonymous wrote:

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@Brian_Earl_Spilner wrote:

Not sure about Discover, but each issuer does it differently. Cap1 makes the cash advance the last thing that gets paid.

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They can legally only do this for the minimum payment. Everything beyond the minimum payment has to be applied to the highest APR. 

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And I'm telling you from personal experience that's not what they do.

[Brian_Earl_Spilner]

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@coreysw12 wrote:

Yep, as I understand, it's been that way since 2009. There is no "it varies from issuer to issuer", they have a federal law they have to abide by... and that law says that any payment amount over the minimum payment must be applied to the highest interest portion of the balance (which is, typically, the cash advance portion)

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Then I guess I should have my attorney contact them because that wasn't the case for me.

[Brian_Earl_Spilner]

Decided to go look at my rates and how my payment will be applied with Cap1. The cash advance rate is the same as the card's apr. So, it is indeed, being paid last.

[zerofire]

Yep it is the small details like that which lenders get you on. Paying off your new purchases in grace at a percentage becomes ok as long as the cash advance percentage is the same even though interest is already being added. Weird world huh?

[Anonymous]

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@Brian_Earl_Spilner wrote:

Decided to go look at my rates and how my payment will be applied with Cap1. The cash advance rate is the same as the card's apr. So, it is indeed, being paid last.

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So you have made payments towards an advance, leaving a balance on the card equal to the advance taken and done the math to confirm this?

Even if you’re still getting hit with interest on the balance, it’s not a huge deal since if you don’t zero it anyway you would be looking at losing your grace period. This is NOT the same as when a bank like BoA would let you take a cash advance for $1000 at a ridiculous APR and then you find out that the $8000 you have on the card at a lower APR has to be paid off first and thus get screwed on interest until you do.