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Author: crackerjack11 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308881  
Subject: Paying Off Cash Advance??? Date: 8/11/2002 11:50 PM
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All --

This is my first post - I did some searching on the board but didn't find an answer to my question. I apologize in advance if it has been properly answered before.

I am currently paying off a Wells Fargo Visa with about $3000 in charges on it. There is a small amount ($170) that is listed as a cash advance -- it seems this amount stems from a Paypal purchase I made back in 2000.

In any event, the purchases APR is 13.6% and the cash advance APR is 19.8%. I noticed that the cash advance balance never gets touched when I make my payments. I called tonite to try to direct deposit $170 so I could just get rid of my cash advance balance and after several frustrating conversations they told me that it was "impossible" to pay off a cash advance balance BEFORE the purchase balance.

I imagine this situation isn't entirely unique and I was wondering if anyone has ever successfully found a way to ear-mark a payment to pay off the cash advance prior to the purchase balance???

Thanks in advance!
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Author: fredinseoul Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 136314 of 308881
Subject: Re: Paying Off Cash Advance??? Date: 8/11/2002 11:52 PM
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FWIW,

My card has the same stipulation.

Welcome to the CC Asylum.

fredinseoul

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Author: xraymd Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 136316 of 308881
Subject: Re: Paying Off Cash Advance??? Date: 8/12/2002 12:12 AM
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Greetings, crackerjack, this is one of the ways that credit card companies lock you down tight! The usual phraseology in the credit card agreement is something like "balances with lower interest will be paid off prior to balances with higher interest." However, if you have the possibility of doing a balance transfer of the ENTIRE BALANCE to another card (preferably one with a lower rate and no transfer fee) then you have effectively "paid off" the lower-rate purchase balance as well as simultaneously paying off the higher-rate cash advance balance. Then before the promotional rate period on the new card expires, you could transfer back any remaining balance to MBNA at your purchase rate (if they agree that's the rate they'll charge you). Of course, you'll want to see if you can waive the transfer fee in that direction, too - or at least ask for a credit to your account in the amount of the transfer fee. Same effect. You'll also want to be sure that the card you transfer back to has a ZERO balance at the beginning of the cycle in which you transfer - otherwise, you run into the multiple-rates-for-different-categories problem all over again!

But now that you are aware of differential rates for different types of transactions, if you are carrying a balance on a card you really don't want to be putting further purchases on it. Best to restrict that to a card that you can pay off in full every month while your balance is shrinking on the card that's carrying it.

xraymd

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Author: sockwonder Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 136335 of 308881
Subject: Re: Paying Off Cash Advance??? Date: 8/12/2002 8:53 AM
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There is a small amount ($170) that is listed as a cash advance -- it seems this amount stems from a Paypal purchase I made back in 2000.

Since your question has already been answered... I'm wondering why your Paypal purchase showed up as a cash advance. I just checked mine, and they show up as purchases.

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Author: crackerjack11 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 136340 of 308881
Subject: Re: Paying Off Cash Advance??? Date: 8/12/2002 9:35 AM
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Since your question has already been answered... I'm wondering why your Paypal purchase showed up as a cash advance. I just checked mine, and they show up as purchases.

When you use Paypal to send money to someone, it asks you for the "TYPE" of payment you want to send. There are 4 options I believe, 3 of them refer to "services" and "goods" (i.e. for auctions, etc.) and the 4th is called "QUASI-CASH".

In any event - it turns out if you choose quasi-cash, it gets put in as a cash advance. If you click the little question mark next to the TYPE box, this fact is documented. I obviously neglected to read the fine print when I first started using Paypal back in 2000.

Moral Of The Story: NEVER CHOOSE QUASI-CASH WHEN USING PAYPAL!!

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Author: frissy Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 136494 of 308881
Subject: Re: Paying Off Cash Advance??? Date: 8/13/2002 12:53 PM
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No, it's not impossible. I had a problem like that (with a different CC co, though) and I just sent in a check for the eighty odd dollars and wrote CASH ADVANCE BALANCE on the memo line for my check, and included a note that it was to be applied to the cash advance balance.

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