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What will WaMu think when I do this?

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Anonymous
Not applicable
‎04-13-2008 09:44 PM
‎04-13-2008 09:44 PM

What will WaMu think when I do this?

I got a new WaMu Real Rewards card with a $15K CL on April 2.
 
I have to pay approximately $10K in taxes on Tuesday.  I have the cash, but it won't be available in my checking account for about another week due to the bank unexpectedly putting a long hold on a very large deposit I made.
 
I'm considering just charging the whole thing to my new WaMu card.  It's going to cost around $250 in fees in order to do this, but I don't think I have many other options right now, due to my lack of liquid funds.  BTW, in my defense, it wasn't exactly poor planning on my part.  I made this deposit well in advance of when I needed the funds, but I am going round and round with the bank about why they are holding my deposit for such an unreasonably long time.
 
So assuming I can't get the bank to release the hold in the next two days, what will WaMu think when I make a charge of 2/3 of my CL when I've only had the card for a few days?  Should I call them and warn them first?
 
Again, I'm not going to carry this balance. I will be able to PIF it in 7 days or so.
 
Any opinions?
 
Message 1 of 51
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Red1Blue
Super Contributor
‎04-13-2008 09:49 PM
‎04-13-2008 09:49 PM

Re: What will WaMu think when I do this?

You might want to call them and advice them that charge is coming. Since it is a brand new card it will give them a comfort that it is not a fradulent charge. The reason you have the credit line is to use it. So use it.
Message 2 of 51
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Anonymous
Not applicable
‎04-13-2008 09:55 PM
‎04-13-2008 09:55 PM

Re: What will WaMu think when I do this?

I say just use it and don't worry about the call.

When I first got my card w/ a 6K limit I charged up 5K in the first two weeks. I paid it off in three months and never heard a peep. WaMu is definitely not as finicky as Amex or others...good luck and sorry to hear about the bank trouble-
Message 3 of 51
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Anonymous
Not applicable
‎04-13-2008 09:59 PM
‎04-13-2008 09:59 PM

Re: What will WaMu think when I do this?

I agree with concorduser.
 
Just call them and everything should be fine.
 
I know it must be frustrating for you. You put money in the bank
well in advance of when you'll need it, but since most banks
hold deposits of 5k or more for up to 10 business days you end
in situations like yours. And in the banks' defense, they have to hold
the money. It's federal law and a post 9/11 requirement, so if you call
and give them a heads-up all should be well. Just be sure you keep
your utilization wayyyyyy below 10% after you get this thing behind you.
 
CanDo
 
"The right attitude is everything"
Message 4 of 51
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Anonymous
Not applicable
‎04-13-2008 10:02 PM
‎04-13-2008 10:02 PM

Re: What will WaMu think when I do this?

Call.  Talk to the most senior rep you can get.  Have them note it.  Then tell the credit department and let them know.
 
Now I don't think this is such a great idea.  Even letting them know....cash advances are bad.....cash advances without any history is almost CL suicide.  I can say first hand that it can cause your account to have negative effects....I've seen it happen.  And then after PIF you might even see a balance chase.
 
With that said....you OWE taxes....I know you wouldn't dare do your taxes electronic file if you owed. (prepare them that way sure...but print and mail...) Why not delay sending the check until 10pm (or anything after 5pm really) at your designated drop off point on Tuesday night.  There is always a place open on the 15th in decent sized cities for a 4/15 postmark.  Then they will take at least a couple days to receive it, cash it and submit it to your bank....even if they send it back electronicly. 
 
I doubt they get it to your bank by friday. That give you until next monday for funds to clear.
 
OR
 
Send them a BT check if you received them yet.
Message 5 of 51
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Anonymous
Not applicable
‎04-13-2008 10:08 PM
‎04-13-2008 10:08 PM

Re: What will WaMu think when I do this?


Pj1369 wrote:
I say just use it and don't worry about the call.

When I first got my card w/ a 6K limit I charged up 5K in the first two weeks. I paid it off in three months and never heard a peep. WaMu is definitely not as finicky as Amex or others...good luck and sorry to hear about the bank trouble-
That's just it.  You CHARGED.  Cash advances on a CC just opened is bad bad bad bad bad.  Take a cash advance on a CC you have had and paid for years...no biggie...on a brand new card....not cool.  It scares them to death. 
 
To the CCC's:  If you needed cash why didn't you get a loan? Maybe you couldn't get a loan....and now we're out all the $ and this is the biggest red flag you can throw up to them.
 
A cash advance is only needed when you can't do a charge...and if you NEED cash from a brand new card that says you don't have the cash on hand.   This scares the CCC.  I don't care if you pay it 2 days later it will be 2 days to late. 
 
Cheddar.......don't do it.
Message 6 of 51
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Anonymous
Not applicable
‎04-13-2008 10:08 PM
‎04-13-2008 10:08 PM

Re: What will WaMu think when I do this?


MinnesotaJ wrote:
 
Now I don't think this is such a great idea.  Even letting them know....cash advances are bad.....cash advances without any history is almost CL suicide.  I can say first hand that it can cause your account to have negative effects....I've seen it happen.  And then after PIF you might even see a balance chase.
It's not a cash advance.  It's a purchase.  You can pay your taxes by CC by going through one of a couple of payment service providers (private entities), but they charge 2.49% of the amount in fees.  The websites for these providers encourage you to pay your taxes by CC and earn rewards for doing so.  Of course, with 2.49% in fees, you can come out ahead only with a 3%+ rewards card like Chase Freedom.
 
I really don't feel comfortable floating a check, especially given who the check is going to.
 
Thanks, for the input so far, everyone.  Anyone else?
 
Message 7 of 51
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Anonymous
Not applicable
‎04-13-2008 10:16 PM
‎04-13-2008 10:16 PM

Re: What will WaMu think when I do this?


cheddar wrote:

MinnesotaJ wrote:
 
Now I don't think this is such a great idea.  Even letting them know....cash advances are bad.....cash advances without any history is almost CL suicide.  I can say first hand that it can cause your account to have negative effects....I've seen it happen.  And then after PIF you might even see a balance chase.
It's not a cash advance.  It's a purchase.  You can pay your taxes by CC by going through one of a couple of payment service providers (private entities), but they charge 2.49% of the amount in fees.  The websites for these providers encourage you to pay your taxes by CC and earn rewards for doing so.  Of course, with 2.49% in fees, you can come out ahead only with a 3%+ rewards card like Chase Freedom.
 
I really don't feel comfortable floating a check, especially given who the check is going to.
 
Thanks, for the input so far, everyone.  Anyone else?
 

Good luck,
I don't know how you can "purchase" a payment to someone.  i.e. sending funds to someone and not getting good or services in return gets keyed as a cash advance through pay pal.  I don't know what company you are going through but I would verify with someone at the company that the transaction you are intending on doing would key as a purchase.
 
I feel for you Cheddar. 
Last but not least... you don't carry high util on any other cards right?
Message 8 of 51
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Anonymous
Not applicable
‎04-13-2008 10:22 PM
‎04-13-2008 10:22 PM

Re: What will WaMu think when I do this?


MinnesotaJ wrote:
 
Good luck,
I don't know how you can "purchase" a payment to someone.  i.e. sending funds to someone and not getting good or services in return gets keyed as a cash advance through pay pal.  I don't know what company you are going through but I would verify with someone at the company that the transaction you are intending on doing would key as a purchase.
 
I feel for you Cheddar. 
Last but not least... you don't carry high util on any other cards right?

I believe there are only a few of these companies approved by the IRS to accept tax payments.  I just checked the FAQ page for one of them and found this:
 
Will I be charged a cash advance fee?
No, your tax payment will be treated like a retail purchase and not a cash advance.

 
To answer your other question, my overall utilization is less than 1%.  ($51 balance / $33K CL)
 
Thanks for making me verify the cash advance/purchases distinction, though!

Edited: My overall CL is actually $33K.  I forgot to include one card.



Message Edited by cheddar on 04-13-2008 10:32 PM
Message 9 of 51
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Anonymous
Not applicable
‎04-13-2008 10:29 PM
‎04-13-2008 10:29 PM

Re: What will WaMu think when I do this?

 
 
13. Will my credit card payment be processed as a purchase or as a cash advance transaction?
Your payment is processed as a purchase transaction.
 
 
You beat me to it but you are right....purchase....no biggie...go for it.   I'd still let them know.....let the credit department know too...tell them that the reason you are charging so much is that you want to start taking advantage of that 3%.  But make sure they know you're PIF'ing.
 
 
Edit: P.S. your low util shouldn't scare the credit department since you carry no balances on the other CC's.   If they were high though then they might get cold feet so I would say to not do it.


Message Edited by MinnesotaJ on 04-13-2008 10:32 PM
Message 10 of 51
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