How a Credit Card Cash Advance Works (and why you shouldn't do one)

[@ProudMoney]

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[@sdanzey6441]

Can I pay off a cash credit advance with another credit card?

[@sdanzey6441]

@Did I really get that many votes? ok crazy joe

[@Z3R0FiR3]

So, never take a cash advance. Thank you for explaining it out easy!

[@ghassanbaqir6163]

I had started being interested in credit cards around last December, you were one of the first youtubers I watched. I ended up subscribing just to your channel among other CC channels. Thanks for explaining the information in a nice simple way.

[@Ramesh-xf9nv]

This is legal loansharking

[@The_Oblivion_Light]

Cash advances are like dealing with a loan shark. Simple as that! Not paying a loan shark can get you killed. Not paying back a cash advance in due time will kill your credit worse than missing a car payment and repossession. Why? An asset it one thing, but hard cash is another. Or put it like this...do you know that feeling when you "loan" someone $50 and they never pay you back like they said you will. Well, no one really cares about an asset, but if it is seen where you accepted money under an agreement and never pay it back, you will never be trusted by anyone for any type of loan.

[@FreethemGuyz]

That.makes sense... they want to tax yo azz

[@The_Oblivion_Light]

@FreethemGuyz Close. They want to apply that now, on average, 30% interest. Simply put, I loan you $100. Do you really want to pay me an extra $30 for a $100 loan? Now, imagine paying me $300 for a $1,000 loan? And the interest rates are always higher than the card's APR when it comes to cash advances. Frankly, cash advances are for people who are on pins and needles and know they are not going to pay back a dime and eventually default intentionally.

[@TheRPM87]

That’s the same as missing any payment on your credit card

[@kentheengineer592]

Take there ass to court

[@gabrielzarzuela7735]

You fail to mention to most important part. Many already know the interest charged are charged immediately after retrieving the cash from the ATM, but some people think that its an immediate one time charge (no 30 days grace) when its a *EVERY DAY* charge until payed in full. Also, when you make a payment, one does not choose what the payment is for, cash advance or the balance of the credit card.

[@johnrichardson8606]

Yeah this is the last bit I can't seem to understand.. maybe you can help? So I get that the interest is charged every day, but where is that interest visible to the customer? As far as I can tell there is no evidence of any daily interest on banking apps etc. Is it usually just tallied up at the end of the year or something and you get hit with -$$$?

[@bobojenkins5805]

vid starts at 2:16

[@Sitchy77]

Wish i seen dos earlier

[@mattblah7737]

Keeping utilization low for a year, my sxore plateaued, and I got zero increases, zero csrd offers. Ran my credit up leading to a large acore decrease, am paying interest, but my score jumped 15 points from the drop after first round of payments, got new 700$ card offer, credit increases immediately without asking. They give you more if you give them more, obviously since they're making a prpfit off of you. Thats the game. Want good credit to buy a house, syc, then you're paying cc companies to say you're a good guy. Not that big a deal. Just make payments every month.

[@gavough]

Appreciate the comment

[@ddelony1]

Cash advances were advertised more in the '60s and '70s when credit cards were becoming more common. Back then, the banks weren't as interlinked and ATMs weren't really a thing, so when you went out of town, you couldn't withdraw cash because the local banks didn't know you. Only major stores took credit cards, unlike today when even fast food places accept cards. If you needed to withdraw cash, this might have been your only option. So cash advances are an artifact of that era. I've never done one, largely because I hardly ever use cash these days. If I needed cash, I'd just make a withdrawal using my debit card, because the ATM fee for using an ATM that wasn't my bank is much lower than the interest. I could see the card companies eliminating cash withdrawals altogether in the future. You know they're bad if even the credit card companies tell you not to use them.

[@joelkaben]

You hardly use cash? That's a mistake but in any case, always have even a little bit of cash on hand in your wallet or in the house somewhere... in emergencies such as hurricanes, tornadoes, solar flares and other disasters that can knock out power.

[@jcamellion]

No grace period on interest but when and how to pay back to minimize interest charge? Can I pay back a day after taking money out?

[@themidnightwraiths]

It’s normal to do cash advances. If you need it. You need it.

[@TampaGigWorker]

A lot of times, it's just for recreational drugs or if you gotta pay someone back immediately in cash.

[@hipoavendano2329]

Thanks for explaining what a cash advance is!

[@CarlosMiguelCanapi08]

The APRs for Purchase and Cash Advances are not always different. I have a credit card which has the same interest rate for Purchases and Cash Advances but holy cow NEVER EVER DO CASH ADVANCES UNLESS IF YOU NEED CASH FOR EMERGENCIES.

[@akinoawong5003]

Actually when I take a cash advance . All I am charged is a 3% interest rate on what I took. Alone . Thats it. 36 dollars that's it.

[@elsapomasguapo]

You’re forgetting the immediate APR

[@akinoawong5003]

@@elsapomasguapo if I take 1000 I am only charged 3% of that. I only owe them 1036. Nothing extra on the statement to come. That how it is for me

[@louisvilletech7765]

@@akinoawong5003 yeah uh what bank does that exactly?

[@tsmit44]

If there’s a casino near you just get a cash advance at the cage. They’ll just charge you like $15 for every $100 you need.

[@kevinwillson341]

Thank you for this very useful information

[@anthonygutierrez6184]

What if I wanna take out 1k and pay it as soon as it shows up in my credit card

[@bandsquad2723]

Thank you, this video was very very very helpful!!!!

[@projectjt3149]

Does the "cash back" in a supermarket count as a cash advance? By that, I don't mean the cash back from point from the cerdit card, I mean the cash back where the cashier actually hands back some money based on a prompt from the transaction.

[@fuadhassan6136]

no because the supermarket will charge it as a standard purchase

[@Poppies__]

The quality makes you look like a game character haha

[@collin1253]

thanks for all the information great channel 👍

[@kargas5490]

so with this fee, there is no way to pay off the cash advance in time and avoid a fee and or the interest associated too?

[@dewayneanderson8985]

A balance transfer is the best way to get money out of your card.

[@prettyinbecky]

Please explain…b/c a balance transfer is not cash advance though like money from your card in your hand.

[@d17vwv84]

Thank you I have one for $300 I haven't used my cash advance yet

[@SHOCKPROOFX]

Great video!

[@karelle2610]

Withdrawing money from the ATM is considered a cash advance?

[@nguxtank4180]

If u use a credit card it’s a cash advance because it’s not your money it’s the banks and it’s totaled on your balance

[@Timbo360]

No. Withdrawing money from an ATM WITH a CREDIT CARD is considered a cash advance. Credit Cards give you an X amount of funds you’re able to spend, but it’s not free money; you need to pay it back. Why use a credit card? Certain things like rent typically need to be paid in cash, while any service or goods/products can be used with a credit card with no ridiculous interest accrued that you get from a CASH ADVANCE. Credit Cards allow you to pay for things you need NOW, while your money isn’t available for another few days. To put it in simper terms: when you go to ATM you probably have bank account (checking account/savings). That is YOUR money, so you are not charged to get money that you earned and belongs to you. A CREDIT CARD on the other hand is like someone saying, “hey I know you dont have any money, I’ll pay for your car payment, just pay me back as soon as you can, or we can set a payment plan to eventually pay me back.” If you take this logic, then imagine that person giving you “money” or “credit” (paying something for you) and taking their credit to take cash (which in this case the cash is BORROWED from the bank). Now not only do you need to reimburse your friend for the credit, but the money that was borrowed from the bank needs to be paid by the creditor, and that’s a oversimplified explanation.

[@TheRelaxingWind]

@@Timbo360 Thanks for this explanation

[@raybosflorida4928]

why no mention on how much was ea mnthly payments were etccc

[@ItsEricSmart]

Customer Service At paypal said there cash advance works like a purchase pay my statment & no interest? ... I sent money to A friend not knowing it was considered cash advance...

[@minionslifestyle3916]

Thanks for the info. New friend here

[@b-e8835]

THANK YOU 🤝

[@kasimshahid6786]

If you put money in your forex account through credit card, would this be considered as pulling out cash or would this be considered as a purchase?

[@AaliyahAllenWayne]

I been searching all over KZbin trying to answer the same question that you have. I wanna know someone helppp

[@rafael2dtang]

I just put money on cryto exhange 10 days and 22 days,mean twice...They charge me Advance fees 6% and andvance interest 2,25% a month(which in billing 2% a month). The thing is,before i do buy my second time ,i call the CS because my payment is fail,and they not remind me about that. There is no rule on writen when i search for it.And no youtube nor google to find those situatian.

[@seawallbreeze9616]

did you record this with a toaster ?

[@ProudMoney]

HD toaster

[@bmovinz7468]

Firebug we need the information who gives too shits about visuals?? You must learn with your hands old visual learning ass 😂

[@thisisaweirdnameone7614]

thank you!

[@clarencetexada8869]

I disagree, I am using my cash advance to get rid of my loans and pay it back. I use the cash advance to pay towards the loans principal. I paid a $2000 loan in 2 months. Sorry it works for me. Loans are worst than line of credit

[@2GreedyT4]

This is what I’m about to do as well , I prefer putting the money into revolving credit rather than a loan where once you pay that money is gone , how has it been working for you ?

[@GamerGrl90]

😮

[@alexlloyd2154]

Irs repo hahaz

[@alexlloyd2154]

Snitf stole

[@ragekingleoTv]

Some cards are free with cash a0p

[@Arabsummer]

I regularly do cash advances and then go to the Casino. LOLOLOLOLOL 732 Fico.

[@ashdraked]

How much do you take out

[@andrewwalker6518]

Living life on the financial edge

[@miguelreyna5724]

Troll 🤡