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Credit Card Cash Advances

Cash Advances on Credit Cards

Cash Advances do not get Float or Grace period. If you take a cash advance on your Credit Card interest will start being calculated the day the cash advance is processed. You will not get the float or the grace period on the cash advance and some card issuers will not give you float or a grace period on other charges you made after the cash advance.

Cash Advance Special Promotions

Sometimes in special promotions you can get a cash advance with zero interest. However there is always a "processing fee" usually of 3% or $5 whichever is larger. The interest free period on most of the zero interest promotions will be 12 to 18 months.

However with most of these offers if you miss a payment your rate will jump to your normal rate on this card of 16-25 percent.

My History with Zero Interest Credit Card Offers

I used to buy inventory for my business with credit cards. I would often get Zero Interest offers from some of my cards.

Usually they had a two or three percent upfront charge when you use their checks. 

Often if you just spent the money on the credit card there is no upfront fee.
I would keep the offer in the file with that particular credit card to make sure I got the free interest for the full term of the offer.

Autopay is great for never missing a Payment

I would make sure the card had Autopay setup for the minimum payment.


Usually my account was suppose to get 14 to 18 months of Zero interest. 

Several times the credit card company started charging interest before the free interest period was scheduled to end. I believe this was intentional.

 I called the bank and reminded them of the terms of their offer. I was always very nice to the customer service and I would tell them the date I received the offer and the date I used it. They always corrected their error.

Cash Advances on your Debit Card vs Credit Card

With a Debit Card the money will come directly out of your checking account. With the Credit Card Cash advance you are borrowing money.  You will start paying interest on you Credit Card Cash advance as soon as the money is transferred into your account.


Your Credit Score after a Large Credit Card Cash Advance

I have maxed out one of my credit cards after getting a zero interest offer.  Even though the rest of my cards had less than 5% in spending on them this one card that was maxed out would severely ding my credit score.
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