What is Cash Advance APR?
I just got my first credit card. I haven't spent anything on it but I see that the Cash Advance APR is 27.5%.
Can someone tell me in layman terms what this means?
credit-card apr
asked 5 hours ago
RajRaj
313
add a comment |
I just got my first credit card. I haven't spent anything on it but I see that the Cash Advance APR is 27.5%.
Can someone tell me in layman terms what this means?
credit-card apr
asked 5 hours ago
RajRaj
313
add a comment |
I just got my first credit card. I haven't spent anything on it but I see that the Cash Advance APR is 27.5%.
Can someone tell me in layman terms what this means?
credit-card apr
asked 5 hours ago
RajRaj
313
I just got my first credit card. I haven't spent anything on it but I see that the Cash Advance APR is 27.5%.
Can someone tell me in layman terms what this means?
credit-card apr
credit-card apr
asked 5 hours ago
RajRaj
313
asked 5 hours ago
RajRaj
313
asked 5 hours ago
RajRaj
313
asked 5 hours ago
RajRaj
313
asked 5 hours ago
RajRaj
313
313
add a comment |
add a comment |
2 Answers
2
active
oldest
votes
A "cash advance" is when you use your credit card in such a way that you receive cash. For example, if you use your credit card in an ATM machine and receive cash.
You should never ever use your credit card for a cash advance.
answered 4 hours ago
quidquid
37.9k872124
Thanks for the answer! I had no idea! Also, that means that I shouldn't even take Cashback from retail stores either, right?
– Raj
4 hours ago
5
Right, never take cash. The interest rate as you can see is awful, there is no grace period, so interest begins accruing immediately. MAYBE if you were being robbed and literally had a gun to your head, it would be worth it, otherwise don't even think about it.
– quid
4 hours ago
@Raj oh! You've had debit cards in the past and noticed they have a cashback feature. Yeah, that's a debit card thing. Credit cards don't support that. But if they did, then yeah, that would count as a cash advance and pay that interest rate.
– Harper
3 hours ago
3
@Harper while that may be true for most credit cards, it is not the case for Discover. It even uses the purchase APR (discover.com/credit-cards/member-benefits/…)
– clcto
3 hours ago
It includes not only cash but "cash equivalents", which includes such things as casino chips.
– Acccumulation
2 hours ago
add a comment |
A cash advance from a credit card is either using the card to get cash from an ATM, or sometimes you get checks that you can use. Any outstanding balance on these transactions will accrue interest at 27.5% annually.
The big downsides with these cash advances they begin accruing interest immediately, not after balance due date like normal credit card purchases. So there's no avoiding interest with a cash advance.
Best to avoid cash advances. Also, ideally you always pay off your statement balance each month to avoid any interest payments.
Edit: Removed out-dated info regarding cash advance portion being paid after regular credit card purchases.
answered 4 hours ago
Hart COHart CO
33k57793
1
This answer (specifically the part about payments above minimum) might have been true a decade ago, certainly not since the CARD Act took effect.
– Ben Voigt
36 mins ago
@BenVoigt Thanks, removed that portion.
– Hart CO
16 secs ago
add a comment |
protected by JoeTaxpayer♦ 4 hours ago
Thank you for your interest in this question.
Because it has attracted low-quality or spam answers that had to be removed, posting an answer now requires 10 reputation on this site (the association bonus does not count).
Would you like to answer one of these unanswered questions instead?
2 Answers
2
active
oldest
votes
2 Answers
2
active
oldest
votes
active
oldest
votes
active
oldest
votes
A "cash advance" is when you use your credit card in such a way that you receive cash. For example, if you use your credit card in an ATM machine and receive cash.
You should never ever use your credit card for a cash advance.
answered 4 hours ago
quidquid
37.9k872124
Thanks for the answer! I had no idea! Also, that means that I shouldn't even take Cashback from retail stores either, right?
– Raj
4 hours ago
5
Right, never take cash. The interest rate as you can see is awful, there is no grace period, so interest begins accruing immediately. MAYBE if you were being robbed and literally had a gun to your head, it would be worth it, otherwise don't even think about it.
– quid
4 hours ago
@Raj oh! You've had debit cards in the past and noticed they have a cashback feature. Yeah, that's a debit card thing. Credit cards don't support that. But if they did, then yeah, that would count as a cash advance and pay that interest rate.
– Harper
3 hours ago
3
@Harper while that may be true for most credit cards, it is not the case for Discover. It even uses the purchase APR (discover.com/credit-cards/member-benefits/…)
– clcto
3 hours ago
It includes not only cash but "cash equivalents", which includes such things as casino chips.
– Acccumulation
2 hours ago
add a comment |
A "cash advance" is when you use your credit card in such a way that you receive cash. For example, if you use your credit card in an ATM machine and receive cash.
You should never ever use your credit card for a cash advance.
answered 4 hours ago
quidquid
37.9k872124
Thanks for the answer! I had no idea! Also, that means that I shouldn't even take Cashback from retail stores either, right?
– Raj
4 hours ago
5
Right, never take cash. The interest rate as you can see is awful, there is no grace period, so interest begins accruing immediately. MAYBE if you were being robbed and literally had a gun to your head, it would be worth it, otherwise don't even think about it.
– quid
4 hours ago
@Raj oh! You've had debit cards in the past and noticed they have a cashback feature. Yeah, that's a debit card thing. Credit cards don't support that. But if they did, then yeah, that would count as a cash advance and pay that interest rate.
– Harper
3 hours ago
3
@Harper while that may be true for most credit cards, it is not the case for Discover. It even uses the purchase APR (discover.com/credit-cards/member-benefits/…)
– clcto
3 hours ago
It includes not only cash but "cash equivalents", which includes such things as casino chips.
– Acccumulation
2 hours ago
add a comment |
A "cash advance" is when you use your credit card in such a way that you receive cash. For example, if you use your credit card in an ATM machine and receive cash.
You should never ever use your credit card for a cash advance.
answered 4 hours ago
quidquid
37.9k872124
A "cash advance" is when you use your credit card in such a way that you receive cash. For example, if you use your credit card in an ATM machine and receive cash.
You should never ever use your credit card for a cash advance.
answered 4 hours ago
quidquid
37.9k872124
answered 4 hours ago
quidquid
37.9k872124
answered 4 hours ago
quidquid
37.9k872124
answered 4 hours ago
quidquid
37.9k872124
37.9k872124
Thanks for the answer! I had no idea! Also, that means that I shouldn't even take Cashback from retail stores either, right?
– Raj
4 hours ago
5
Right, never take cash. The interest rate as you can see is awful, there is no grace period, so interest begins accruing immediately. MAYBE if you were being robbed and literally had a gun to your head, it would be worth it, otherwise don't even think about it.
– quid
4 hours ago
@Raj oh! You've had debit cards in the past and noticed they have a cashback feature. Yeah, that's a debit card thing. Credit cards don't support that. But if they did, then yeah, that would count as a cash advance and pay that interest rate.
– Harper
3 hours ago
3
@Harper while that may be true for most credit cards, it is not the case for Discover. It even uses the purchase APR (discover.com/credit-cards/member-benefits/…)
– clcto
3 hours ago
It includes not only cash but "cash equivalents", which includes such things as casino chips.
– Acccumulation
2 hours ago
add a comment |
Thanks for the answer! I had no idea! Also, that means that I shouldn't even take Cashback from retail stores either, right?
– Raj
4 hours ago
5
Right, never take cash. The interest rate as you can see is awful, there is no grace period, so interest begins accruing immediately. MAYBE if you were being robbed and literally had a gun to your head, it would be worth it, otherwise don't even think about it.
– quid
4 hours ago
@Raj oh! You've had debit cards in the past and noticed they have a cashback feature. Yeah, that's a debit card thing. Credit cards don't support that. But if they did, then yeah, that would count as a cash advance and pay that interest rate.
– Harper
3 hours ago
3
@Harper while that may be true for most credit cards, it is not the case for Discover. It even uses the purchase APR (discover.com/credit-cards/member-benefits/…)
– clcto
3 hours ago
It includes not only cash but "cash equivalents", which includes such things as casino chips.
– Acccumulation
2 hours ago
Thanks for the answer! I had no idea! Also, that means that I shouldn't even take Cashback from retail stores either, right?
– Raj
4 hours ago
Thanks for the answer! I had no idea! Also, that means that I shouldn't even take Cashback from retail stores either, right?
– Raj
4 hours ago
5
5
Right, never take cash. The interest rate as you can see is awful, there is no grace period, so interest begins accruing immediately. MAYBE if you were being robbed and literally had a gun to your head, it would be worth it, otherwise don't even think about it.
– quid
4 hours ago
Right, never take cash. The interest rate as you can see is awful, there is no grace period, so interest begins accruing immediately. MAYBE if you were being robbed and literally had a gun to your head, it would be worth it, otherwise don't even think about it.
– quid
4 hours ago
@Raj oh! You've had debit cards in the past and noticed they have a cashback feature. Yeah, that's a debit card thing. Credit cards don't support that. But if they did, then yeah, that would count as a cash advance and pay that interest rate.
– Harper
3 hours ago
@Raj oh! You've had debit cards in the past and noticed they have a cashback feature. Yeah, that's a debit card thing. Credit cards don't support that. But if they did, then yeah, that would count as a cash advance and pay that interest rate.
– Harper
3 hours ago
3
3
@Harper while that may be true for most credit cards, it is not the case for Discover. It even uses the purchase APR (discover.com/credit-cards/member-benefits/…)
– clcto
3 hours ago
@Harper while that may be true for most credit cards, it is not the case for Discover. It even uses the purchase APR (discover.com/credit-cards/member-benefits/…)
– clcto
3 hours ago
It includes not only cash but "cash equivalents", which includes such things as casino chips.
– Acccumulation
2 hours ago
It includes not only cash but "cash equivalents", which includes such things as casino chips.
– Acccumulation
2 hours ago
add a comment |
A cash advance from a credit card is either using the card to get cash from an ATM, or sometimes you get checks that you can use. Any outstanding balance on these transactions will accrue interest at 27.5% annually.
The big downsides with these cash advances they begin accruing interest immediately, not after balance due date like normal credit card purchases. So there's no avoiding interest with a cash advance.
Best to avoid cash advances. Also, ideally you always pay off your statement balance each month to avoid any interest payments.
Edit: Removed out-dated info regarding cash advance portion being paid after regular credit card purchases.
answered 4 hours ago
Hart COHart CO
33k57793
1
This answer (specifically the part about payments above minimum) might have been true a decade ago, certainly not since the CARD Act took effect.
– Ben Voigt
36 mins ago
@BenVoigt Thanks, removed that portion.
– Hart CO
16 secs ago
add a comment |
A cash advance from a credit card is either using the card to get cash from an ATM, or sometimes you get checks that you can use. Any outstanding balance on these transactions will accrue interest at 27.5% annually.
The big downsides with these cash advances they begin accruing interest immediately, not after balance due date like normal credit card purchases. So there's no avoiding interest with a cash advance.
Best to avoid cash advances. Also, ideally you always pay off your statement balance each month to avoid any interest payments.
Edit: Removed out-dated info regarding cash advance portion being paid after regular credit card purchases.
answered 4 hours ago
Hart COHart CO
33k57793
1
This answer (specifically the part about payments above minimum) might have been true a decade ago, certainly not since the CARD Act took effect.
– Ben Voigt
36 mins ago
@BenVoigt Thanks, removed that portion.
– Hart CO
16 secs ago
add a comment |
A cash advance from a credit card is either using the card to get cash from an ATM, or sometimes you get checks that you can use. Any outstanding balance on these transactions will accrue interest at 27.5% annually.
The big downsides with these cash advances they begin accruing interest immediately, not after balance due date like normal credit card purchases. So there's no avoiding interest with a cash advance.
Best to avoid cash advances. Also, ideally you always pay off your statement balance each month to avoid any interest payments.
Edit: Removed out-dated info regarding cash advance portion being paid after regular credit card purchases.
answered 4 hours ago
Hart COHart CO
33k57793
A cash advance from a credit card is either using the card to get cash from an ATM, or sometimes you get checks that you can use. Any outstanding balance on these transactions will accrue interest at 27.5% annually.
The big downsides with these cash advances they begin accruing interest immediately, not after balance due date like normal credit card purchases. So there's no avoiding interest with a cash advance.
Best to avoid cash advances. Also, ideally you always pay off your statement balance each month to avoid any interest payments.
Edit: Removed out-dated info regarding cash advance portion being paid after regular credit card purchases.
answered 4 hours ago
Hart COHart CO
33k57793
edited 2 mins ago
answered 4 hours ago
Hart COHart CO
33k57793
answered 4 hours ago
Hart COHart CO
33k57793
answered 4 hours ago
Hart COHart CO
33k57793
33k57793
1
This answer (specifically the part about payments above minimum) might have been true a decade ago, certainly not since the CARD Act took effect.
– Ben Voigt
36 mins ago
@BenVoigt Thanks, removed that portion.
– Hart CO
16 secs ago
add a comment |
1
This answer (specifically the part about payments above minimum) might have been true a decade ago, certainly not since the CARD Act took effect.
– Ben Voigt
36 mins ago
@BenVoigt Thanks, removed that portion.
– Hart CO
16 secs ago
1
1
This answer (specifically the part about payments above minimum) might have been true a decade ago, certainly not since the CARD Act took effect.
– Ben Voigt
36 mins ago
This answer (specifically the part about payments above minimum) might have been true a decade ago, certainly not since the CARD Act took effect.
– Ben Voigt
36 mins ago
@BenVoigt Thanks, removed that portion.
– Hart CO
16 secs ago
@BenVoigt Thanks, removed that portion.
– Hart CO
16 secs ago
add a comment |
protected by JoeTaxpayer♦ 4 hours ago
Thank you for your interest in this question.
Because it has attracted low-quality or spam answers that had to be removed, posting an answer now requires 10 reputation on this site (the association bonus does not count).
Would you like to answer one of these unanswered questions instead?
