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Borrowing money from a credit card

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Diva
I am what I am

Member since 12/05

2825 total posts

Name:
Jennifer

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?

Posted 8/9/06 12:28 PM
 
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baghag
:P

Member since 5/05

10278 total posts

Name:

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They charge a higher interest rate on the cash that is withdrawn.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.

Posted 8/9/06 12:30 PM
 

Kelly04
LIF Adolescent

Member since 8/05

841 total posts

Name:
Kelly

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.

Posted 8/9/06 12:30 PM
 

Diva
I am what I am

Member since 12/05

2825 total posts

Name:
Jennifer

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They charge a higher interest rate on the cash that is withdrawn.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!! Chat Icon

Posted 8/9/06 12:31 PM
 

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

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! Chat Icon

-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Cash withdrawn from the available credit of your credit card account.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.

Posted 8/9/06 12:32 PM
 

CrankyPants
I'm cranky

Member since 7/06

18178 total posts

Name:
Mama Cranky

Re: Borrowing money from a credit card

They also can start charging interest on the cash immediately-not so for purchases.

Posted 8/9/06 12:32 PM
 

Diva
I am what I am

Member since 12/05

2825 total posts

Name:
Jennifer

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. Chat Icon

Posted 8/9/06 12:35 PM
 

baghag
:P

Member since 5/05

10278 total posts

Name:

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. Chat Icon



Yes! I would definitely charge before withdrawing cash. Cheaper. Chat Icon

Posted 8/9/06 12:37 PM
 

MegZee
My bunny

Member since 5/06

8777 total posts

Name:
Meaghan

Re: Borrowing money from a credit card

I have a CC right now that is at 0% (and I have no balanceChat Icon )

the Cash Advance interest rate is over 20%!!!!

never ever ever ever do a cash advance if you can charge it!

Posted 8/9/06 12:41 PM
 

Baboots
I miss you grandma

Member since 8/05

1437 total posts

Name:

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.

Posted 8/9/06 1:11 PM
 

dpli
Daylight savings :)

Member since 5/05

13973 total posts

Name:
D

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 Chat Icon

Posted 8/9/06 2:51 PM
 

Beth
The Key to your new home....

Member since 2/06

24849 total posts

Name:
Beth

Re: Borrowing money from a credit card

Posted by Meaghan729

I have a CC right now that is at 0% (and I have no balanceChat Icon )

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

Posted 8/9/06 2:52 PM
 

SweetTooth
I'm a tired mommy!

Member since 12/05

20105 total posts

Name:
Lauren

Re: Borrowing money from a credit card

Credit cards are evil. All the way around.

Posted 8/9/06 3:44 PM
 

LadyMaravilla
Fall Is Here

Member since 5/05

12023 total posts

Name:
Sonia

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!

Posted 8/9/06 3:46 PM
 
 

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