Al asked in Business & FinanceCredit · 2 months ago

is t illegal to use cash advance on credit cards?

I know credit cards do not like it when you use cash advances because they do not know what you do with cash. To increase my chances of getting approved, I could tell them I do not intend to use cash advances If on the application, I put down I do not intend to use cash advances on this card, but then get a cash advance, is that fraud?

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  • 2 months ago

    Trust me they WANT you to take a cash advance-That is how they make their interest, cash advances are usually up to 5% more in interest rates, plus they charge you a cash advance fee.

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  • 2 months ago

    You don't know what you're talking about. Banks LOVE IT when you take a cash advance. On purchases, as long as you pay your full balance on time for every billing cycle, they don't earn a penny of interest. On a cash advance, they begin charging interest IMMEDIATELY. And on top of that, most banks charge you 3% or 4% of the advance as a fee. So if you take a $1,000 cash advance, you are being charged interest, immediately, on $1,030 or $1,040.

    Banks don't care what you do with the cash. They only care about you paying it back...and hopefully, slowly, so they can collect more interest. Cash advances should be avoided.

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  • 2 months ago

    They do like it when you use cash advances, because they can charge your fees for the cash advances. If they didn't want you to be able to do cash advances, then they wouldn't let you.

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  • DON W
    Lv 7
    2 months ago

    To add to the other answers, not all credit cards offer cash advances.  To get a credit card with an option of cash advances, you will need to show a good credit score, meaning you are likely to pay back the cash advance.

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  • Anonymous
    2 months ago

    They love cash advances. They make high upfront fees and interest. However, they are often only a fraction of your regular limit.

    They are big boys. Nothing you "put down" is going to matter much.

    You need to realize you must pay the money back or face 7 years of bad credit and possible wage garnishment.

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  • 2 months ago

    What are you talking about? They like you to take cash because they charge more when you do. They don't give a shinyshite what you are doing with it. 

    Edit: I just noticed other answers say the same but I didn't read them before writing mine.

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  • 2 months ago

    Literally everything in your question is false or inaccurte:

    Credit cards don't like it when you use cash advances - FALSE, they love it when people take cash advances because of all the ways to borrow money via a credit card, cash advances have the highest fees and interest rates. It is literally the most profitable way (for them) that you could possibly use your card. They love it when people take cash advances. They don't care what you do with the cash, its all the same to the bank.

    As for telling them on your application - not a thing. Credit card applications don't ask you how you intend to use the card or whether or not you plan to take cash advances.

    Is if fraud to take one - no, obviously not. If a bank issues you a credit card that allows cash advances up to a certain limit, then of course its not fraud to use the card in the way they bank authorized you to use the card. if they didn't want you to take a cash advance they wouldn't allow it. Its stupid (because of the high fees), but not fraud.

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  • 2 months ago

    It is not illegal although cash advantages carry a higher interest rate so it would not be to your advantage.

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  • Anonymous
    2 months ago

    Credit cards LOVE it when you take a cash advance.  They get to charge you a fee for doing that AND interest from the day you take the money out until it's repaid.

    If it was illegal, cash advances wouldn't be an option.

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  • 2 months ago

    They LOVE it when you do cash advance actually, because the interest rate is higher and they make more money off of you.

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