Another credit card question...cash advances?
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That idea sounds good on paper, but you forgot one thing, usually 0% APR is for PURCHASES only. For cash advances, the amount of interest is unreal. Plus, you would have to pay at least the minimum every month to keep the credit card in good standing, so whatever interest that you were trying to gain while it was in the bank account, would not only be gone, but you would have to probably pay extra.
Be very careful about cash advances. All credit cards that I have seen accrue interest DAILY on cash advances, meaning as soon as you take the money out, you have to start paying hefty interest fees. The introductory APR doesn't usually apply to cash advances.
Nope, as a matter of fact I saw a news program yesterday where a guy was talking about doing the exact same thing.
The only flaw is that most credit cards do not offer 0% on cash advances only on balance transfers.
Laurel is correct, and to top it off, they will charge you processing fee or service fee to do this, even though they say zero % interest rate. Check it out before you do anything. If it sounds too good to be true, it is too good to be true. They will always make money off of you somehow, even if you think you are out smarting them.
Check the small print regarding cash advances. Most if not all cards charge a higher rate on cash advances. Also if you are going to use one of those checks, be sure there is not a 3% user fee on the check. Happened to me but I did not see the little writing saying if you use the checks, there is a 3% charge up front.
Cash advance interest rates are most of the time different and higher from credit card purchase rates. I would read the fine print first.
I found some good info here.
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