Jump to content

Cash Advances


wbg
 Share

Recommended Posts

I have been reading over some of my past statements and have noticed something strange. Under the Fiance Charges section it shows my balance for purchases and cash advances. The strange thing is that the balance keeps changing from up a few dollars to down a few dollars. It is also strange to note that when the balance is sometimes lower the finance charge is higher then the previous month when the balance was higher. Can anyone make sense of this? The balance should be going only one way which is down as well as my finance charges!

Link to comment
Share on other sites

The reason that you are experiencing this is because you have different interest rates. Usually you have a specific rate for regular purchases and usually a higher rate for cash advances. All of your payments will automatically go towards I believe the regular perchases 1st then towards the cash advances. Example say you have charges at Walmart for $500 with a percentage rate of 19.99%. Then you make a cash advance for $500 with a percentage rate of 23.99%. Your payment will go towards the regular purchases first. So you might see the payments fall on one finance charges decrease on the purchase side, and increase on the cash advance side because your payments is going towards the purchases. Once you have paid the purchases off then it would go towards the cash advances. Now I believe it goes to the purchases first, if not its the other way around.

Link to comment
Share on other sites

I am sorry, that post was a little confusing. What I meant was that the fluctations are occuring only within the cash advance section. I have both the same peroidic rate and apr rate for both purchases and cash advances.

The balance for the purchases goes down every month as well as the finance charge so that part is ok. The problem is the the cash advance balance and finance charge. Even if no money is going toward the cash advances it should not be going back and forth. Any more suggestions?

Link to comment
Share on other sites

No, the money you are paying every month is gonna go towards the purchases first. So if you have $50 purchase and $50 cash advance, and you pay $20 a month, then the $20 is going towards the purchases. So your finance charges will go down on the purchase side and up on the cash advance side cause you aren't really applying any money to the cash advance side. Follow me?

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.