Payment allocation

[Anonymous]

Curious if anybody knows how payments are allocated between purchase and cash advances if the apr are the same? I’ve been making payments for over a year above minimum due and nothing is being applied to cash advance balance.

[Anonymous]

Your card agreement should say how payments are allocated, but on many cards, payments are applied to purchase balances before cash advance balances.

[K-in-Boston]

Welcome to the forums!  Correct, as long as the APRs are the same it will vary by lender how payments are applied.  If one was a higher APR, then anything above the minimum payment would have to be applied to higher APR by law.

[Brian_Earl_Spilner]

What card is it?

[Anonymous]

Cap1 Platinum

[Anonymous]

Spoke with rep, he said since my purchase and cash advance is the same rate, it’s considered 1 balance and I’d have to pay off whole balance to stop getting cash advance interest...hmmm

[Anonymous]

Which means they can keep charging me interest until I pay off my whole balance..

[Anonymous]

They’re going to charge you interest until it’s paid off whether it’s a cash advance or a purchase

[CreditInspired]

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@Anonymous wrote:
Spoke with rep, he said since my purchase and cash advance is the same rate, it’s considered 1 balance and I’d have to pay off whole balance to stop getting cash advance interest...hmmm

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Hi OP and welcome

Banks don’t like customers using CA and IMO, that’s Cap1’s reason for not applying payments to CA so as to deter useage, thereby keeping the CA available amount lower. Just my 2cents. 

[zerofire]

It is a common agreement that straight cash is the worst possible thing you can ever do. Every bank in existence hates the whole idea of a Cash Advance but shows it in different ways. Most charge higher rates for the inconvenience of dealing with it but a few charge the same rate but will not release the CA limit before purchases are paid off. I recommend that you pay back your bank and figure out a better source of funds for whatever it was you were using cash for.