| Credit card cash advance question |
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zeez
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| Credit card cash advance question |
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First let me say that I don't currently have any credit cards.  I know that if you have a credit card, and pay off your balance every month, you don't have to pay any interest. What about cash advances? I know CC companies usually charge alot more for these, but do you have to pay the interest if you pay it back within a month? Basically what I'm asking is, is it possible to get a "free" loan for a month?
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Thu Feb 03, 2005 3:33 am |
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Andrew
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I don't think so.
First they are going to charge you a fee, something like 2.5% or 3%, and then the interest usually starts accruing from day 1.
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Thu Feb 03, 2005 4:33 am |
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sagetips
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If there's a card out there that would allow it, I'd love to know about it.
I have found that Discover card apparently allows merchants to give some "cash back" on purchases. There's a small grocery chain in my area that allows you get up to $50 cashback on Discover. You not only get interest-free cash for a month, it also earns the 1% Discover reward. I don't know if it's a system quirk or if Discover knowingly lets them do it, but it may be worth asking whether you can get "cash back" when you buy something on your card.
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Sun Feb 06, 2005 7:01 pm |
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Mimi2140
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| Want to earn money? |
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Mon Feb 07, 2005 5:13 pm |
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lisaleblanc1217
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| MAKE FAST MONEY WITH A $6 INVESTMENT!!!! |
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Wed Feb 28, 2007 7:20 pm |
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efflandt
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It may be hard to still find 0% for balance transfers (except maybe for a new card if you have an excellent credit history). Existing cards usually charge 3-4% for balance transfers, and daily interest (if more than 0%) starts compounding immediately, and ends when you actually pay it off. So you may get one more bill for final interest after you think you fully paid it off.
The best deals, short of no balance transfer fee, set a maximum limit like $75. So if you borrow $20k at 0% for 6 months, it only costs $75 instead of $600-800. But the secret is figuring out and having the money when you need to pay it off before your normal interest rate kicks in, which is the trap they hope you will fall into.
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Thu Mar 01, 2007 12:30 am |
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Kiaser
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Hmmm, what would stop someone from taking $20k interest free for 6 months and sticking it into a CD for 6-months (if there are such CDs)? 5% of $20k in a year is $1,000, and even half that for 6 months is $500 which is way more than $75 transacation fee maximum. Not a bad return for doing squat. I guess you'd have to figure a way to pull cash from the balance transfer without the cash withdraw terms/fees but I don't suppose that would be too hard.
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Thu Mar 01, 2007 2:03 pm |
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Kiaser
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quote:
Originally posted by coaster
As a matter of fact, I heard on the radio of someone who did something like that. Got an interest-free credit card, took out a $10K cash advance, invested the $10K, doubled his money, paid back the credit card, and came out with $10K. Not bad. But it could have gone the other way, too. Which is always the risk you have with leverage.
True but aren't CD's guaranteed?
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Fri Mar 02, 2007 1:20 am |
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