Credit Card's Cash Advance APR ?
Danny asked:
I have a cash advance limit of $300.
There's a third party program that I make deposits using my credit card, however, the third-party program tends to take it out as a cash advance instead for some odd reason. I have a Cash Advance APR of 19.24%.
If I pay my credit card bill in full at the end of the month, I do NOT have to pay the interest from the cash advance, correct?
Is there also a fee for cash advances? I believe my card charged me $10 a transaction or so, can't seem to remember.
Don't ever use credit card for cash advance. They charge interest from the minute you charge it, not the end of the billing period
Check the terms of your credit card, but cash advances generally accrue interest starting from the first day, even if you pay your balance in full at the end of the month, only the purchases amount is interest-free. There might also be a fee for a cash advance – again, check the terms for your card.
Cash advances usually charge a 3% fee plus interest from the date of the cash advance.
Naturally when you make a deposit from your account to another account, it will be a cash advance or a fee will be charged. Why should the receiving account pay the typical 10-50 cents plus 2% of the amount that merchants are normally charged for purchases?
You'll also find that you will be charged a fee (that covers the cost of the fee that merchants will pay) when you use your credit card for paying such things as rent, insurance, federal and state payments, etc.