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pressman0523

Warning: Do NOT use Barclay card for cash advance!

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But on another note, on two of my new cards, BofA and Itunes--they literally sent a letter explaining how easy it is to get an advance, and even sent me convienance checks you can deposit into my checking account. BofA goes one step farther by allowing all my credit line available for cash advances. Just trying to rope me into debt, but NOPE NOT ME BUDDY!

 

 

I get regular mailings of credit-line access checks from CapOne all the time, but at worst, usage of these is treated as "purchases", not "cash advances", and at best, often are accompanied by either a low or % APR offer for 12-18 months. These CAN be useful if used wisely and sparingly(see my sig for an example), but as you said, this sort of thing lulls some people into indebting themselves more than they would have otherwise(if at all), and fortunately, you seem to recognize the double-edge sword these checks represent <_< Good on ya!

 

I would agree with that. By the way, ZeroDebt, would you really expect a big drop if Cap 1 is the only card you have a balance on? Mine dropped 9 points when I did something similar. At 836, it's probably not going to be really crushing.

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Also taking out only 100 may have been a flag. They may be wondering why you cash advanced such a small sum.

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Seems like a booby-trap to me.

 

Yeah, I will echo what others have said - that's probably what it is. It's been well known for years now that cash advances are not looked at positively by the issuer. Why they go crazy offering them to you? Maybe they want to see who is the higher risk :D

 

Live and learn. NEVER take out a cash advance again. :D

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I'm kinda worried this might happen to my Citi Forward. I used it to fund a new checking account and it was processed as a cash advance. The card is only a couple months old. I guess we'll see what happens.

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I agree with the sentiment I think I saw articulated in some of the above posts:

 

Why provide a benefit if it's considered "bad" to use it, and triggers a punishment?

 

Seems like a booby-trap to me. They should just not offer cash advance as a function of the card if it is going to be seen as that much of a negative that it triggers account closures and credit line decreases. The cookie/6-yr-olds analogy was a good one.

...AND WHY REFUSE TO LOWER IT TO $0

 

"IF" IT MUST SHOW AN AMOUNT...TRY $19

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Just used BT check from my midwest airlines juniper card. I used the check sent by barclays 7500 at 0% and 3% fees. Check cleared without any problems.

Edited by cknykid

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Just used BT check from my midwest airlines juniper card. I used the check sent by barclays 7500 at 0% and 3% fees. Check cleared without any problems.

 

Just cause it "cleared" does not mean anything. Without question the fact that you used a balance transfer has been noted on your account for risk purposes. It's playing with fire.

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Just used BT check from my midwest airlines juniper card. I used the check sent by barclays 7500 at 0% and 3% fees. Check cleared without any problems.

 

Just cause it "cleared" does not mean anything. Without question the fact that you used a balance transfer has been noted on your account for risk purposes. It's playing with fire.

 

Taking advantage of an issuers BT offer is a lot different than a cash advance. I wouldn't worry about it at all.

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Just used BT check from my midwest airlines juniper card. I used the check sent by barclays 7500 at 0% and 3% fees. Check cleared without any problems.

 

Just cause it "cleared" does not mean anything. Without question the fact that you used a balance transfer has been noted on your account for risk purposes. It's playing with fire.

 

Taking advantage of an issuers BT offer is a lot different than a cash advance. I wouldn't worry about it at all.

 

I have heard the same types of crazy stories with BT's.

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I know it is against the conventional wisdom, but I have never seen any real evidence and I do not believe that simply taking a cash advance is considered a bad thing by card issuers, absent other red flags.

 

In other words, if you have low utilization, good payment history and you take an advance, it is not a big deal at all. On the other hand, if you are ramping up debt, have a lot of recent inquiries and other red flags, taking cash advances may add to the concerns of the credit card issuer.

 

Now, with the OP, it was a new account and I do believe issuers are concerned about identity theft and may see immediate cash advances as problematical with a new account. This is also why often cash advance limits will be kept very low initially but raised to closer to the overall limit as time goes by. That said, Barclays is just wacky and I see little or no logic in its action against the OP.

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What a difference a decade makes! About 7 or 8 years ago, I literally lived off nothing BUT cash-advances on my CCs for about 1 1/2 years, banging up a total of $23k in high APR, all cash-advance debt, on 7 different CCs, robbing Peter to pay Paul every month, and managed to keep juggling 7 balls in the air simultaneously, without ever dropping one. my balances and util kept increasing every month, but nobody ever said boo. In fact my Providian accts kept auto-CLIing every time I neared the limit. And when I got my very first $200 CL Cap1 card, I used it to take out a $20 cash advance within 2-3 days of recieving and activating the card, paid it back in full w/interest the following month, and was almost immediately rewarded for this with a pre-approved Providian card offer for 5X that CL in my PO Box a couple of weeks later. I had no job, no bank account of any kind, no provable income, "inferred" that I make maybe about $600 a month, had no physical address and no landline phone - just a cell, a PO Box, and a pulse, and the flood of pre-selected and pre-approved CC offers started flooding my PO Box pretty much from that point on, and didn't even slow down till maybe 1 1/2- 2 years ago. Within 5 years, I had parlayed this to 7 CCs with a combined CL of about $40k, all without a job, no steady income, no physical address, no bank account, and no landline phone. Again, what a difference a decade makes - I can't imagine this sort of no-questions-asked, easy credit enviroment will ever return to the US in my lifetime.

 

Edited to add: And maybe that's a Good Thing.

Edited by ZeroDebt

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I have known friends who were out of work 7 or 8 months and lived like that just fine between a few credit cards..LOL! When they got back to work though, it wasn't fun having to try and pay this all down

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I have known friends who were out of work 7 or 8 months and lived like that just fine between a few credit cards..LOL! When they got back to work though, it wasn't fun having to try and pay this all down

Tell me about it! I was doing great up until Nov 08, then was put in a position at work where I felt compelled to tell my boss what time it was, had to move on VERY short notice(unrelated) the following month, rent tripled, saw the economy fall off the cliff, did 6 months with NO unemployment benefits, finally got a new job in June 09, only to have my car blow up 26 miles from home on_the_very_first_day on the new job - went from about $3,600 debt in Nov 08, to $9k by June 09, Had my APRs rate-jacked 5% accross the board and now, *finally* back down to about $2k total debt this month(and on track to be once again totally debt-free within 4 months) . If I didn't have access to the credit that I do, I woulda been screwed :D And say what you will about Cap1, they stuck with me without a hitch, and never decreased any of my 3 CLs with them, and never called or emailed me, questioning/busting chops over why I was suddenly banging up $1k a month in new debt. There are folks on this forum who hate them (for whatever reason(s), but I have to say they've been pretty damn fair

with me the whole 11 or so years that I've had them, and in this credit enviroment, I'm glad I maintained my relationship with them,

as they are likely the ones I will go to first, to finance my next "non-conforming"/"unfinanceable" acquisition ;)

Edited by ZeroDebt

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I would agree with that. By the way, ZeroDebt, would you really expect a big drop if Cap 1 is the only card you have a balance on? Mine dropped 9 points when I did something similar. At 836, it's probably not going to be really crushing.

 

Yes, since I'm going from 0% util to 60% in one fell swoop, (never mind the $0 balances on the other cards). My sig is outdated, I can't seem to update it without being told "you're using too many lines"(even after deleting 3 or 4 lines of it), and although my present debt is about $2500 total(soon to be <$2k by next week), I do not know any of my FICO scores anymore, ever since WAMU got eated by Chase, but I'm willing to bet that, even now, I'm probably sub-800 - largely due to non-usage and subsequent non-reporting by TLs with extended periods of inactivity - and wouldn't be surprised to see sub-800 FICOS even after

I become debt-free.

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I know it is against the conventional wisdom, but I have never seen any real evidence and I do not believe that simply taking a cash advance is considered a bad thing by card issuers, absent other red flags.

 

The rate to take a cash advance is very high(much higher than the purchase rate and higher than a BT rate) for the majority of cards - few exceptions. In addition to that high interest rate there is often a cash advance fee. So, when one initiates a cash advance on a card account, they are immediately charged the fee, and the interest rate kicks in that day. There is no grace period on cash advances. Interest accrued immediately.

 

What this transaction often signifies to a lender is that the customer has no liquid savings to draw from. Being the interest rates and fees to do are so high, there should be no reason why a customer shouldn't draw from other cash resources. From the lenders standpoint, the customer may not possess the means to pay the debt back since it appears a cash advance was the last option. Again the customer may have a reason for taking the advance, but the lender interprets this as financial trouble.

 

This is why a line of credit is a good account to have set up. The interest rates are often low, there are usually no fees and one never needs to use it unless they need it.

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I know it is against the conventional wisdom, but I have never seen any real evidence and I do not believe that simply taking a cash advance is considered a bad thing by card issuers, absent other red flags.

 

The rate to take a cash advance is very high(much higher than the purchase rate and higher than a BT rate) for the majority of cards - few exceptions. In addition to that high interest rate there is often a cash advance fee. So, when one initiates a cash advance on a card account, they are immediately charged the fee, and the interest rate kicks in that day. There is no grace period on cash advances. Interest accrued immediately.

 

What this transaction often signifies to a lender is that the customer has no liquid savings to draw from. Being the interest rates and fees to do are so high, there should be no reason why a customer shouldn't draw from other cash resources. From the lenders standpoint, the customer may not possess the means to pay the debt back since it appears a cash advance was the last option. Again the customer may have a reason for taking the advance, but the lender interprets this as financial trouble.

 

This is why a line of credit is a good account to have set up. The interest rates are often low, there are usually no fees and one never needs to use it unless they need it.

:D Yes LOC is the best in case cash is unavailable from my savings or checkings.

Everyone should know Looney Juny is a no-no for cash advance, in fact I'd be nervous if I needed to do a bt with them as well! :o

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I know it is against the conventional wisdom, but I have never seen any real evidence and I do not believe that simply taking a cash advance is considered a bad thing by card issuers, absent other red flags.

 

The rate to take a cash advance is very high(much higher than the purchase rate and higher than a BT rate) for the majority of cards - few exceptions. In addition to that high interest rate there is often a cash advance fee. So, when one initiates a cash advance on a card account, they are immediately charged the fee, and the interest rate kicks in that day. There is no grace period on cash advances. Interest accrued immediately.

 

What this transaction often signifies to a lender is that the customer has no liquid savings to draw from. Being the interest rates and fees to do are so high, there should be no reason why a customer shouldn't draw from other cash resources. From the lenders standpoint, the customer may not possess the means to pay the debt back since it appears a cash advance was the last option. Again the customer may have a reason for taking the advance, but the lender interprets this as financial trouble.

 

This is why a line of credit is a good account to have set up. The interest rates are often low, there are usually no fees and one never needs to use it unless they need it.

 

 

Trevor, I agree with you and have a couple of LOC's for this very purpose, but to play the devils advocate, what prevents a lender from viewing

the use of a LOC in the same way as a CA? Other then it's less money to use a line of credit it still indicates you are out of liquid funds. Not disagreeing

with you, just curious about your thoughts.

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I know it is against the conventional wisdom, but I have never seen any real evidence and I do not believe that simply taking a cash advance is considered a bad thing by card issuers, absent other red flags.

 

The rate to take a cash advance is very high(much higher than the purchase rate and higher than a BT rate) for the majority of cards - few exceptions. In addition to that high interest rate there is often a cash advance fee. So, when one initiates a cash advance on a card account, they are immediately charged the fee, and the interest rate kicks in that day. There is no grace period on cash advances. Interest accrued immediately.

 

What this transaction often signifies to a lender is that the customer has no liquid savings to draw from. Being the interest rates and fees to do are so high, there should be no reason why a customer shouldn't draw from other cash resources. From the lenders standpoint, the customer may not possess the means to pay the debt back since it appears a cash advance was the last option. Again the customer may have a reason for taking the advance, but the lender interprets this as financial trouble.

 

This is why a line of credit is a good account to have set up. The interest rates are often low, there are usually no fees and one never needs to use it unless they need it.

 

 

Trevor, I agree with you and have a couple of LOC's for this very purpose, but to play the devils advocate, what prevents a lender from viewing

the use of a LOC in the same way as a CA? Other then it's less money to use a line of credit it still indicates you are out of liquid funds. Not disagreeing

with you, just curious about your thoughts.

 

I'd like to hear Trevor's reply too, but my thought on it is that (most) providers of LOCs already have insight into how you use some of your liquid cash, as opposed to CCs, which (generally) do not.

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I know it is against the conventional wisdom, but I have never seen any real evidence and I do not believe that simply taking a cash advance is considered a bad thing by card issuers, absent other red flags.

 

The rate to take a cash advance is very high(much higher than the purchase rate and higher than a BT rate) for the majority of cards - few exceptions. In addition to that high interest rate there is often a cash advance fee. So, when one initiates a cash advance on a card account, they are immediately charged the fee, and the interest rate kicks in that day. There is no grace period on cash advances. Interest accrued immediately.

 

What this transaction often signifies to a lender is that the customer has no liquid savings to draw from. Being the interest rates and fees to do are so high, there should be no reason why a customer shouldn't draw from other cash resources. From the lenders standpoint, the customer may not possess the means to pay the debt back since it appears a cash advance was the last option. Again the customer may have a reason for taking the advance, but the lender interprets this as financial trouble.

 

This is why a line of credit is a good account to have set up. The interest rates are often low, there are usually no fees and one never needs to use it unless they need it.

 

 

Trevor, I agree with you and have a couple of LOC's for this very purpose, but to play the devils advocate, what prevents a lender from viewing

the use of a LOC in the same way as a CA? Other then it's less money to use a line of credit it still indicates you are out of liquid funds. Not disagreeing

with you, just curious about your thoughts.

 

Lenders could very well deem a LOC being utilized as a negative in the sense that the holder needed cash from non liquid savings. However the one difference is that most lenders are aware LOCs carry a significant lower interest rate, and most carry no fees. The issue with cash advances is that they are priced very high and carry fees. This alone should deter only the person that has no other choice. Given LOCs don't carry the same high fees, they are not considered the same last resource choice. Cashing in investments, CDs etc may result in a higher expense than tapping the LOC. But this is highly unlikely with the cash advance - their fees and accrued interest are more expense. Again, there are a few exceptions with certain cards.

 

That said it depends on the lender. Borrowed cash of any sort may be a red flag .

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I agree with Trevor that logically someone could view accessing cash advances as evidence of some financial issues. I just don't think there is any evidence that credit card issuers--who freely offer this option--take adverse action based simply on taking a cash advance, absent other red flags.

 

I am just saying I do not agree with those posters above who are deathly afraid of taking a cash advance and say that that one should absolutely never do it under penalty of death. I definitely do not believe this is correct. There is no harm from taking an occasional cash advance.

 

And, no, I see no difference in this respect between accessing a LOC and accessing a credit card cash advance feature. Both signal you have no ready cash.

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Lenders could very well deem a LOC being utilized as a negative in the sense that the holder needed cash from non liquid savings. However the one difference is that most lenders are aware LOCs carry a significant lower interest rate, and most carry no fees. The issue with cash advances is that they are priced very high and carry fees. This alone should deter only the person that has no other choice. Given LOCs don't carry the same high fees, they are not considered the same last resource choice. Cashing in investments, CDs etc may result in a higher expense than tapping the LOC. But this is highly unlikely with the cash advance - their fees and accrued interest are more expense. Again, there are a few exceptions with certain cards.

 

That said it depends on the lender. Borrowed cash of any sort may be a red flag .

 

I agree totally. I also concede that I am going on 2005-2008 experience. I wonder/hope that lenders are using the same logic.

 

I can't think of a more uncertain topic.

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I've taken cash advances on CCs several times over the last 10 years. I don't make a habit of it, but I've done it. Not once has it triggered adverse action.

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I know it is against the conventional wisdom, but I have never seen any real evidence and I do not believe that simply taking a cash advance is considered a bad thing by card issuers, absent other red flags.

 

The rate to take a cash advance is very high(much higher than the purchase rate and higher than a BT rate) for the majority of cards - few exceptions. In addition to that high interest rate there is often a cash advance fee. So, when one initiates a cash advance on a card account, they are immediately charged the fee, and the interest rate kicks in that day. There is no grace period on cash advances. Interest accrued immediately.

 

What this transaction often signifies to a lender is that the customer has no liquid savings to draw from. Being the interest rates and fees to do are so high, there should be no reason why a customer shouldn't draw from other cash resources. From the lenders standpoint, the customer may not possess the means to pay the debt back since it appears a cash advance was the last option. Again the customer may have a reason for taking the advance, but the lender interprets this as financial trouble.

 

This is why a line of credit is a good account to have set up. The interest rates are often low, there are usually no fees and one never needs to use it unless they need it.

 

 

I looked through some of my credit card contracts. I don't revolve balances but I was curious about what would happen to my bill if I did take a cash advance.

 

 

The updated contracts I have still say (even with CARD Act) that when I make a payment less than the full balance, the money first goes to the lowest APR balances, not the highest. Since cash advances are always charged the highest interest rate, that means if I don't pay off ALL my charges I've ever made to the card that are outstanding, no money will go pay down the principal on the cash advance.

 

That means if I charge $8,000 to the card and then take out a cash advance for $500 and I make $450 payments every month, that $500 will sit there accruing interest until God knows when... maybe years, unless I clear that $8,000 fast to get down to that last $500 that's running at a hot interest rate.

 

 

I thought this went away with the CARD Act? Can someone clarify?

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One of the nice perks of a Barksdale Federal Credit Union Credit Card.

 

9.99% APR on prurchases AND cash advances

 

and best of all?

 

No Adverse Action for Cash Advances. I've done about $1000 worth

over the past 2 years a couple hundred at a time and never had

an issue with them.

 

 

Of course, this is the same bank that deleted my entire billpay account

when I called to get the mailing address updated, then blamed me for

their inability to recover it "Because I didnt notify them within 24 hours",

but I guess we cant have everything eh?

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