What is the 3% transaction fee for credit card cash advance checks?
Saturday, November 15th, 2008 at 1:36 am
Looking For Cash Day Advance Loan Reports
I recently applied for a credit card with a 0% introductory rate for the first 12 months on balance transfers and check cash advances. My credit line is 2000 and i wanted to use 500 of my credit…
I’ve never done a check cash because the APR on check cash advances are high. But since I have the 0% introductory rate, I’d assume it would be okay since I can pay back that $500 within the 12 months.
if I were to issue a check to myself of $500, will the balance on my credit card be $500 plus the 3% transaction fee? so around the total of $515?
or does that 3% transaction fee apply to something else?
thanks in advance for any type of info
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November 15th, 2008 at 5:26 pm
You need to read the fine print in your agreement - that 3% fee on $500 would normally be $15, but some cards have a “minimum” fee that is more than $15, and some do not. If yours doesn’t, then your credit card balance should be $515.
November 16th, 2008 at 9:39 am
Credit cards make money on every transaction. When you charge a purchase, .25-2% of that amount is actually paid to the credit card company.
You want to take money and therefore they want to charge you that cost of doing business with a credit card (even if it is a cash advance). Therefore, in this case, they are charging you 3% upfront for the loan. So, yes, you will have to pay at least $515 back to borrow $500. Odds are that the cash advance is NOT going to be eligible for the 0% interest grace period (it rarely is). Read your fine print or call the credit card company to ensure the loan is interest free.
Lastly, cash advances are a bad idea. If you don’t have the cash, don’t borrow it as you will invariably pay more in the end.
November 17th, 2008 at 6:34 am
Usually the 0% APR only applies to purchases not cash advances so I would say the 3% would apply….the only way to know for your particular situation is to call, or read the disclosures for the fine print…