credit card cash advance question?
Stuart asked:
say i advanced $200 and there was a balance of $300 previously, and say i pay off $300, will the daily interest stop because i payed off the cash advance, but the monthly interest will continue until i pay the remaining money off?
i don't think that worded quite well but i think you get the gist of it..
A cash advance on a credit card is ALWAYS a bad idea. Have you considered a small "signature" or "personal" loan from your bank? Be careful.
No. Cash advances accrue interest from the day you do it. They also incur a fee for using the service. Interest will be lower if you pay $500.00 as soon as you can, but it will still result in an interest charge for that month nonetheless.
Your daily interest and monthly interest will be based on the new debt level of $200.
can you explain what these numbers are towards?
You advanced $200
What was the balance of $300 on, the credit card, or the cash advancement account?
What did you pay off $300 to, paying off the credit card or the cash advancement account?
Payments almost always go towards the lowest interest charges first (or whatever is in the bank's favor). So the cash advance would accrue interest from the time you drew the money until you paid it off, and some of that interest will appear on the statement after you pay it off (from previous statement closing date until actual payoff date).
Cash advances have a fee plus usually higher interest rate (unless you have a teaser balance transfer rate, which also usually has a 3% balance transfer fee).