Cash Advance on credit card and pay back on straight away to clear bill?

SLZ

Has anyone done a cash advance and then paid it back on to the card in order to clear a minimum payment on the card? I ask as I won't be paid for a little while yet but my statement date is due in 3 days hence why I was wondering if it was worth doing a cash advance, wait for it to appear on statement then pay it off before the statement due date of the current balance is required?

I'm not actually using the card at the moment so the balance wouldn't go down and I'd clear the fee plus interest in the pay I make to the current bill.

Any advice?

[Deleted User]

Yes - some people do this, and it can be a better alternative to a missed payment.

But obviously not something to make a habit of.

SLZ

Deleted_User wrote: »

Yes - some people do this, and it can be a better alternative to a missed payment.

But obviously not something to make a habit of.

It is a better alternative, it would only be this once as I'm not paid until end of next month with new employer however I've got another source of income coming in from end of this month.

To clarify, I wait until it's appear on the statement then pay it off right?

Edit: This won't cause issues with interest later on right?

bigadaj

SLZ wrote: »

It is a better alternative, it would only be this once as I'm not paid until end of next month with new employer however I've got another source of income coming in from end of this month.

To clarify, I wait until it's appear on the statement then pay it off right?

Edit: This won't cause issues with interest later on right?

To minimise interest pay teh cash back as son as you can, this will reduce the time and interest it will cost you.

You may get some trailing interest on your next statement, as you would for any purchase you didn't clear in full, but this will be a very small amount.

What credit card is it?

Ben8282

Strictly as a one off, your idea of taking a cash advance to ensure that your credit card is paid by the due date is fine.
Be aware that this payment will be applied to the balance of your previous statement and not to the cash advance.
To repay the cash advance prior to the issue of your next statement you must first repay the entire balance of your previous statement plus the cash advance.
If you wait until the cash advance has appeared on a statement (not just appeared on your internet banking) any payment will then be applied to the cash advance first.

SLZ

Ben8282 wrote: »

Strictly as a one off, your idea of taking a cash advance to ensure that your credit card is paid by the due date is fine.
Be aware that this payment will be applied to the balance of your previous statement and not to the cash advance.
To repay the cash advance prior to the issue of your next statement you must first repay the entire balance of your previous statement plus the cash advance.
If you wait until the cash advance has appeared on a statement (not just appeared on your internet banking) any payment will then be applied to the cash advance first.

So I've shot myself in the foot, I effectively do have to pay the balance twice, it's still showing as pending and hopefully it will show on statement before due date but if I'm paying the payment twice, I appear to have made a slight mistake but I guess it's a learning experience and I'll pay the extra off next month if that's the case. Thanks.

Ben8282

Well no, not exactly. You have achieved your aim of getting last month's credit card bill paid at the cost of the cash advance fee plus a small amount of interest on the cash advance.

YorkshireBoy

Ben8282 wrote: »

Be aware that this payment will be applied to the balance of your previous statement and not to the cash advance.
To repay the cash advance prior to the issue of your next statement you must first repay the entire balance of your previous statement plus the cash advance.
If you wait until the cash advance has appeared on a statement (not just appeared on your internet banking) any payment will then be applied to the cash advance first.

Not necessarily.

It depends on the card provider. Whilst some (eg Halifax) say* they'll apply the payment to statemented transactions first, others (eg MBNA) say* they'll apply it to all cash balances, whether statemented or not.


* In their respective T&Cs.

adindas

Ben8282 wrote: »

Strictly as a one off, your idea of taking a cash advance to ensure that your credit card is paid by the due date is fine.
Be aware that this payment will be applied to the balance of your previous statement and not to the cash advance.
To repay the cash advance prior to the issue of your next statement you must first repay the entire balance of your previous statement plus the cash advance.
If you wait until the cash advance has appeared on a statement (not just appeared on your internet banking) any payment will then be applied to the cash advance first.

Why make it complicated. For using it as Purchase & cash withdrawal, I think
the better method is to clear all of the balance appear on online before traveling abroad. Doing this you do not need to work out which balance come from the last statements month, etc.

Going back home from holiday clear all the balance again, doing this you do not need to think which one is purchase which one is cash withdrawal.

Spending too much time to work out on this is not worthy at all imo.

YorkshireBoy

adindas wrote: »

Why make it complicated. For using it as Purchase & cash withdrawal, I think
the better method is to clear all of the balance appear on online before traveling abroad. Doing this you do not need to work out which balance come from the last statements month, etc.

Going back home from holiday clear all the balance again, doing this you do not need to think which one is purchase which one is cash withdrawal.

Spending too much time to work out on this is not worthy at all imo.

Did you mean to make this post on another thread?...in response to a totally different topic?