Credit Card Cash Advance calculation?

Question

Hi all,

Just would like to know the calculation of cash advance on my credit card.

How do i calculate, how much i would pay if i withdraw cash with my credit card? is there a formula for this?

EG: if i withdraw $2000 cash from my credit card that has $10000 limit and interest is 20% per annum. ( assuming no other transactions on the card for the month as well as as time of withdrawal the amount available is $10000)how much would i pay in interest at the end of 30 days ( or 60 days)? do i pay $2040? or interest calculated daily added to the balance giving a higher back payment. see this is where i get lost.

I know some cards charge % of the cash draw as fee etc... i am really interested in the 'interest paid on amount withdrawn' side of things....

any help is appreciated... thank you all... :)

Answer 1

Don't do it!  There are a whole lot of hidden fees and interest fee on withdrawing cash from card is higher, trust me! You're better off getting a small loan from a bank with a smaller interest fee.  It'll also boost your credit when its fully paid.

Answer 2

The interest rate is always stated as annual interest.

Your interest should be $400.00 for the year unless they compound the interest monthly or daily, for example if your borrow $2000. the monthly interest should be about $34. (400/12), then assume no payment made you would owe $34.00 in interest plus the 2000.00 and next month you pay interest on $2034.00.