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Diva
I am what I am
Member since 12/05 2825 total posts
Name:
Jennifer
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Borrowing money from a credit card
I heard it wasnt good to borrow money from a credit card. Does anyone know why? Would this apply to sporadically borrowing $20?
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Posted 8/9/06 12:28 PM  |
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baghag
:P
Member since 5/05 10278 total posts
Name:
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Re: Borrowing money from a credit card
They charge a higher interest rate on the cash that is withdrawn.
Plus, THEY get to decide when it gets paid back. lets say you owe $100, and withdraw $20. They will apply any payments you make to the $100 before the $20- so they can charge you the higher interest rate for as long as possible.
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| Posted 8/9/06 12:30 PM |
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Kelly04
LIF Adolescent
Member since 8/05 841 total posts
Name:
Kelly
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Re: Borrowing money from a credit card
Im not sure.... but I think that the money that you barrow is at a higher interest...although I could be wrong.
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| Posted 8/9/06 12:30 PM |
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Diva
I am what I am
Member since 12/05 2825 total posts
Name:
Jennifer
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Re: Borrowing money from a credit card
Posted by baghag
They charge a higher interest rate on the cash that is withdrawn.
Plus, THEY get to decide when it gets paid back. lets say you owe $100, and withdraw $20. They will apply any payments you make to the $100 before the $20- so they can charge you the higher interest rate for as long as possible.
Ahhh!!! That makes a whole lotta sense. Thanks!! 
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| Posted 8/9/06 12:31 PM |
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Eva Luna
Be kind...life's hard!
Member since 8/05 4750 total posts
Name:
God, bless & heal my DH, JenG's DH Rob & DebG
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Re: Borrowing money from a credit card
Because the fees are insane!! The interest rates are higher, there are fees for "cash advances" and it's treated as a cash advance, not a purchase.
See below! 
-Cash Advance
Cash withdrawn from the available credit of your credit card account. There is no grace period for cash advances. Interest accrues daily and at a higher APR until the complete balance is paid in full. Transaction fees may apply.
-Cash Advance Transaction Finance Charge
A fee assessed on the date a new cash advance transaction is posted to an account.
-Purchases
Credit card charges you make at merchants. Purchases usually have a lower APR than cash advances.
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| Posted 8/9/06 12:32 PM |
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CrankyPants
I'm cranky
Member since 7/06 18178 total posts
Name:
Mama Cranky
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Re: Borrowing money from a credit card
They also can start charging interest on the cash immediately-not so for purchases.
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| Posted 8/9/06 12:32 PM |
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Diva
I am what I am
Member since 12/05 2825 total posts
Name:
Jennifer
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Re: Borrowing money from a credit card
So what your all trying to say is, since I have no cash on hand, I'm better off charging my $5 lunch than borrowing the money.
I just always feel so funny charging a meal at Mickey D's or something. 
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| Posted 8/9/06 12:35 PM |
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baghag
:P
Member since 5/05 10278 total posts
Name:
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Re: Borrowing money from a credit card
Posted by Diva
So what your all trying to say is, since I have no cash on hand, I'm better off charging my $5 lunch than borrowing the money.
I just always feel so funny charging a meal at Mickey D's or something.
Yes! I would definitely charge before withdrawing cash. Cheaper.
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| Posted 8/9/06 12:37 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Borrowing money from a credit card
I have a CC right now that is at 0% (and I have no balance )
the Cash Advance interest rate is over 20%!!!!
never ever ever ever do a cash advance if you can charge it!
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| Posted 8/9/06 12:41 PM |
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Baboots
I miss you grandma
Member since 8/05 1437 total posts
Name:
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Re: Borrowing money from a credit card
I had to do this once because the place I had to give money to wouldn't accept a credit card so I had to make a cash advance. It wasn't so bad because I put the money back immediately so I only had like 2 days interest. If I had to go longer, the interest would have killed me. I would only do it for a very short time.
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| Posted 8/9/06 1:11 PM |
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dpli
Daylight savings :)
Member since 5/05 13973 total posts
Name:
D
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Re: Borrowing money from a credit card
Posted by CrankyPants
They also can start charging interest on the cash immediately-not so for purchases.
Exactly. I did this once many years ago and never did it again. I took out $20 and it must have been near the beginning of the billing cycle, because when the bill came, with the accrued interest, I think it cost me close to $20 in fees to take out the original $20.
Don't do it! Charge your happy meal
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| Posted 8/9/06 2:51 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Borrowing money from a credit card
Posted by Meaghan729
I have a CC right now that is at 0% (and I have no balance )
the Cash Advance interest rate is over 20%!!!!
never ever ever ever do a cash advance if you can charge it!
same with a few on mine- not worth it
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| Posted 8/9/06 2:52 PM |
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SweetTooth
I'm a tired mommy!
Member since 12/05 20105 total posts
Name:
Lauren
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Re: Borrowing money from a credit card
Credit cards are evil. All the way around.
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| Posted 8/9/06 3:44 PM |
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LadyMaravilla
Fall Is Here
Member since 5/05 12023 total posts
Name:
Sonia
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Re: Borrowing money from a credit card
Posted by SweetTooth
Credit cards are evil. All the way around.
I need to this write this on my forehead!
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| Posted 8/9/06 3:46 PM |
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