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Sigene
08-15-2011, 07:29 AM
Ok so I'm sure this is a stupid question. .... well maybe an ignorant question, so that's why I'm here

How do you get actual cash and charge it to your credit card? Do you go to a bank and say..Here's my credit card, I need $50?

Can you get it from grocery stores when you pay with the card? Do you get it at their service counter?

IvoryTowerDenizen
08-15-2011, 07:32 AM
For most you get a PIN and use it in an ATM like a debit card. Some provide checks you can deposit or cash. However, please remember that most credit cards charge a much higher rate for cash advances than normal charges.

Telemark
08-15-2011, 07:34 AM
You can go to an ATM and use your Credit Card to get a cash advance. There may be fees involved. I haven't tried it at a grocery store.

Marconi N. Cheese
08-15-2011, 07:36 AM
Aside from high fees, the interest usually begins immediately, no grace period like you get with purchases. Also your cash limit may be less than your credit line.

UDS
08-15-2011, 07:37 AM
In addition to using it in an ATM, you can usually use it in a bank to draw cash over the counter.

You generally can't get cash from a merchant. They pay a levy whenever they accept a transaction on your card. It's a levy they're willing to bear when they make a sale, but generally not when you are simply using their cash float as a convenience to avoid the need to call into the bank. There's nothing in that for them.

As IvorTowerDenizen notes, this is an expensive way to get cash.

chiroptera
08-15-2011, 07:37 AM
You'll be charged a fee at an ATM, plus your card service might also charge you. If you buy something at a grocery store you should be able to get up to $100 (maybe more depending on the store) cash back without paying a fee.

CookingWithGas
08-15-2011, 07:38 AM
No grocery store or any other business will give you cash for a credit card, because they have to pay fees for the transaction that include a percentage of the total amount. (They will often give you cash back on a debit card transaction, though.)

As mentioned, you can get a PIN for your credit card and use it at an ATM. (ETA: This is different than your debit card that has "Visa" logo that can be used as either a credit card or a debit card. My credit card that is just a credit card also has a PIN to be used for cash advances.) You can probably take your card to the bank that issued it and get cash, though I have never done it. Also as mentioned, my bank about once every two months sends me a promotional brochure with debit slips (that work just like checks) attached to it to get a cash advance or spend like checks. Which I always shred.

pulykamell
08-15-2011, 07:39 AM
I've only once did this and pulled it from an ATM, so you need to have your PIN activated to do this that way.

I'd recommend against cash advancing on a credit card if at all possible for four reasons: Most, if not all, credit cards begin accruing interest on a cash advance from the moment the transaction is made. That is, there is no 30-day grace period to pay off your account interest-free like with normal purchases, so you will always pay some amount of interest on a cash advance. Second, most, if not all, banks charge you a cash advance fee that is some %age of your advance. Usually somewhere in the range of 2 to 4 percent. Third, cash usually carry a higher interest rate than normal credit purchases. Fourth, many banks require you to pay down your purchases first before paying off your cash advance. This means the higher interest on your cash advance will keep accruing until you pay off your purchases completely and only then will you make a dent in the cash portion of your debt.

Yeah, generally, stay away from cash advances on credit cards. Also, it's not always obvious what is counted as a cash advance. Those credit card checks you might get in the mail? Those are usually cash advances. Overdraft protection that is linked to a credit card? That's also a cash advance. I seem to recall there being other transactions that are sometimes treated as cash advances, but those are the two I can come up with off the top of my head.

ETA: The above was written when this thread still had no replies, so much of the info might be repeated.

LSLGuy
08-15-2011, 07:42 AM
Never mind. Lotsa other posters this morning beat me to it.

ThelmaLou
08-15-2011, 07:42 AM
You have to have a PIN number associated with that card to use an ATM.

Also sometimes the credit card company sends "checks" that you can write on that account.

kanicbird
08-15-2011, 07:42 AM
You can go into a bank also to got cash from a CC, I did this once when traveling with a pet who needed a emergency vet visit and the vet only took cash or check. There was a fee, and percentage wise not a good way to get cash, but under the circumstances in a emergency, not horrible either. No pin required, the reason I went to a bank is because I didn't know any of my pin numbers.

Balthisar
08-15-2011, 08:14 AM
This is how I get reimbursed for business expenses. I never see the fees on my statements, so my company must have a special agreement with them. Heck, it might even be free to my company; 3% (varies from merchant to merchant) of what we spend ought to be quite a handsome amount.

Sparky812
08-15-2011, 09:21 AM
Aside from high fees, the interest usually begins immediately, no grace period like you get with purchases. Also your cash limit may be less than your credit line.


Quoted for importance.

Taking a cash advance or using a credit cheque can be a costly way to borrow money. The interest accrues daily from the date of the advance even if you pay off the entire balance when your monthly statement is due.
A simple work around is to ask a vendor to tack on an extra amount to a sale so that it appears as a purchase on your credit statement or shop at stores which offer a cashback feature on their debit/credit machines. (IIRC Home Depot and Walmart both offer this service.)

For example, I will be out at the pub and when I settle my bill I will ask the server to take on extra money for cab fare, food, etc..

thelabdude
08-15-2011, 09:35 AM
Wal*Mart, Dollar General, and some other places allow cash back on your credit card purchases, without any fee or pin. They have become my major source of cash. I think you always could get cash at a bank office, but they did hit you hard on interest. I have never done it. In the past, I could use my credit card to assess cash from my chcking account, but my current bank won't allow the use of the Discover card I currently use.

CookingWithGas
08-15-2011, 09:41 AM
Wal*Mart, Dollar General, and some other places allow cash back on your credit card purchases, without any fee or pin.They probably have a limit of how much cash you can get, and this is cash back on a purchase--they are making a profit on the sale so can afford to eat $1.50 if you need $50 back.

postcards
08-15-2011, 10:05 AM
You'll be charged a fee at an ATM, plus your card service might also charge you. If you buy something at a grocery store you should be able to get up to $100 (maybe more depending on the store) cash back without paying a fee.
You are confusing debit cards with credit cards. The OP is asking about credit cards.

LurkMeister
08-15-2011, 10:52 AM
Discover has a program that lets you get cash in addition to your purchase at certain grocery stores with no fee involved. When the program first started the additional cash also qualified as a "purchase" rather than as a "cash advance" and got you credit toward their CashBack program, a feature which a friend of mine exploited by always getting the maximum of $50, putting that money in the bank, and paying his bill in full every month.

I'm not sure what changes may have been made in the program, but I know that every time I use my Discover card at Food Lion the card-swipe machine asks me if I want additional cash, and I have to press the "None" button to continue. And last week one of the counter coupons I got was a reminder from Discover that I could get additional cash with no fee.

thelabdude
08-15-2011, 12:26 PM
They probably have a limit of how much cash you can get, and this is cash back on a purchase--they are making a profit on the sale so can afford to eat $1.50 if you need $50 back.

I think the limit is $50 cash on any size purchase. I recently explained to a clerk I had to use my card and was using cash back because I didn't have the cash to cover a small purchase.

I don't know if cash back is limited to Discover or not.

Hari Seldon
08-15-2011, 02:01 PM
Probably not what you are looking for, but in 1991, most European countries did not allow American (or Canadian) bank cards (essentially what are now called debit cards) to be used to draw cash. I was spending a month in Europe and what I did was send my credit card $5000 and then go into European banks and ask for a cash advance. Of course, the banks charged exchange fees, but it cost no more than if I had taken $5000 in cash.

Wallydraigle
08-15-2011, 03:25 PM
Don't EVER take out a cash advance from your credit card. I did it one time in an emergency, and I'd literally rather sell bone marrow or something than do that again.

As others have pointed out, the interest starts racking up immediately, but what isn't obvious is how you pay down the cash advance. Basically, cash advances are the very last thing to come off your balance when you pay your bill. So if you charged $100 worth of stuff on your card, but also took out a cash advance for $100, and at the end of the month you make a payment for $100, the $100 cash advance is still on there accruing interest.

Now, you're thinking fine, just pay off the statement balance and you're golden. Wrong. You might have $100 worth of merchandise and a $100 cash advance on there this month, but chances are you've charged something else on there between when the statement came out and when you paid your bill. If you charged $100 on there again after that, even if you pay off the $200 statement balance ($100 stuff+$100 cash) the cash advance is STILL on there racking up interest each and every day.

To ever get a cash advance paid off you literally have to carry a $0 balance for two full billing periods. Run. Run as fast as you can and never look back. Cash advances are the biggest scam the credit card companies ever came up with. And don't even open those checks they send you each month. That counts as a cash advance and isn't even cash.

dracoi
08-17-2011, 02:14 PM
Don't EVER take out a cash advance from your credit card. I did it one time in an emergency, and I'd literally rather sell bone marrow or something than do that again.

A credit card cash advance is probably better terms than a payday loan. Cash advances, even with fees to withdraw the money are generally in the 30-40% APR range. Payday loans can be in the 400% APR range (per the FTC (http://ftc.gov/bcp/edu/pubs/consumer/alerts/alt060.shtm)).

Of course, both options are designed to bleed you dry and generally make financial problems worth rather than better. Bone marrow is probably the best option :)

zombywoof
08-17-2011, 02:28 PM
Apparently (from what I heard on a recent podcast of NPR's "Planet Money") until recently you used to be able to order Presidential dollar coins from the US Mint by credit card, this would have been a way to get cash without doing a "cash advance".

(They stopped allowing such purchases by credit card because a people were regularly buying hundreds or thousands of dollars in coins using credit cards that award frequent flier points for dollars spent, then just depositing them in the bank and paying off their bill.)

Ograbme
08-17-2011, 03:15 PM
Why to banks do the higher/immediate interest thing for cash?

Mama Zappa
08-17-2011, 03:35 PM
Why to banks do the higher/immediate interest thing for cash?

1) because they can
2) because they're not collecting merchant fees for the cash like they would if you made a purchase: if you spend 200 dollars at Wal-Mart, the bank gets several dollars from Wal-Mart. If you get a 200 dollar cash advance, the bank would get nothing otherwise.

...Fourth, many banks require you to pay down your purchases first before paying off your cash advance. This means the higher interest on your cash advance will keep accruing until you pay off your purchases completely and only then will you make a dent in the cash portion of your debt..
With the recent credit card reform act, payments in excess of the minimum now go to the highest-rate debt (http://creditcards.com/credit-card-news/help/what-the-new-credit-card-rules-mean-6000.php#highest), which is a change that will (hopefully) help those folks who were stuck in "can't pay down" hell because of the way payments were formerly applied.

Canadjun
08-17-2011, 05:19 PM
Why to banks do the higher/immediate interest thing for cash?

Probably less important than the reasons mentioned above, but if interest was not charged on cash advances immediately, you could postpone paying your cards off forever - pay off credit card A with an advance from credit card B; wait a few days; pay off credit card B with an advance from credit card A; wait a few days days; repeat ad infinitum. That strategy doesn't work if interest on cash advances accrues immediately.

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