When you do a cash advance with a credit card, is the interest rate charged daily or monthly(get the bill)?

Question

I understand there is interest monthly with purchases and if you don't pay it all back on the due date but I'm unsure with cash advances about when they charge you.

Answer 1

They start charging interest on the day you get the cash advance. Also, most cards also charge a 3% fee immediately. On top of that, some cards have a much higher interest rate for cash advances.

Answer 2

On purchases you have the grace period before interest is charged, so you can have a zero balance, charge, get the statement, pay the balance in full and have no interest charged.

There is no grace period for cash advances. The interest will be charged at the daily periodic rate for cash advances.

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Answer 3

Oh they want you to take cash advances.  Yes the interest is charged monthly.  However when they credit your payment they first credit your purchase amounts.  Why do you ask have you looked at what they charge you in interest for those cash advances?  More money in interest charges for them.  Cash advances can will get you trouble very fast.  

How do I know well my daughter thought she would take a few cash advances and now she is in way over her head.  Believe me what ever you need the cash for is not worth it.

Answer 4

If you can't avoid taking out  a cash advance on your credit card, the smarter route is to request one of those convenience checks that carry a promotional rate.  Like 4.9% for the first year.  That could save you huge amounts of money over the long term.  I can just about guarantee that even if you had a 14.9% rate for the promotion you are coming out better than what banks charge on regular cash advances.  (Assuming you are a regular credit or above person)

Or you could call the issuer and ask about current promotions for deposits to your account.  Keep in mind, I am not recommending taking out a balance transfer on a credit card, but if yo have to, there are smarter ways to do it than simply going to a bank or ATM.

Robby

Cash Advance Marketer

http://www.welendcashdallas.com

http://www.welendcashchicago.com