If I have a $2000 cash advance limit on my credit card, how often can I take the advance?
j r asked:
If I take the $2000 cash advance and pay it off in a week can I take another cash advance right away? Is there normally a cap?
3 Responses to “If I have a $2000 cash advance limit on my credit card, how often can I take the advance?”
Have you suffered all the finace charges on that ? If you can justify that, well more power to you, but I don't think the advance is free.
Something you should know is that there is a fee for taking a cash advance. It used to be less, but is currently about 4-5%. So assuming it is 4%, if you had that $80 taken from the cash advance, you would get $1920, but you would have to pay back $2000 + interest.
So while you could take another cash advance for the amount you have paid off, it would not make sense to pay it off and immediately get another cash advance, because then you would end up paying another 4%. So if you were going to need the cash again in a week, you would pay less in interest for a week holding the cash and using it, instead of paying off the cash advance and getting another cash advance a week later.
Why would you want to do that?
The fees and interest on that sort of transaction are killer~!
Look at your credit agreement or call the 800# on the back of your card and ask the operator how often you can take a cash advance.
I would suggest though, this isn't the smartest idea.