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304 North Cardinal St.
Dorchester Center, MA 02124
Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
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By O1ne Mortgage
You might be able to pay back a cash advance as soon as it’s posted to your account. However, you may need to repay more than you borrowed because many credit cards charge a cash advance fee. Interest can also start accruing daily, leading to a larger balance if you don’t pay off the cash advance quickly.
You can pay off a cash advance by making a credit card payment as you normally would. However, you generally can’t choose which transactions or balances you want your payment to go toward. Instead, the credit card issuer automatically applies your payment amount based on a set of rules—these are commonly disclosed in the card’s terms and conditions.
To cover your entire cash advance, your payment may need to be for your current statement’s minimum payment, plus the cash advance amount and any related fees and interest.
The cash advance balance often gets paid off before purchases because it tends to have a higher interest rate. However, credit card issuers can make a few choices about how to apply your payment, and other balances might come before the cash advance. Here’s how it usually works:
A cash advance might help you get cash if you’re in a pinch, but it generally isn’t a good idea because of the fees and high interest rate. Consider some alternatives if you need cash quickly, such as:
Cash advances can sometimes happen by accident. Perhaps you used a credit card to send someone money on a payment app, or you purchased a cash-like product, such as cryptocurrency. Accidentally transferring money from your credit card instead of to it will also result in a cash advance. Be sure to carefully read the confirmation text of money transfers between your bank accounts before confirming the transfer.
You might be able to avoid accidental cash advances if you try to lower your card’s cash advance limit. Call your card issuer or log in to your account to see if you can disable cash advances or lower your card’s cash advance limit. You might even be able to set it at $0 if you’re worried about accidentally making a cash advance or someone else stealing your card and requesting a cash advance.
If you accidentally used a cash advance, monitor your account for another month or two, even if you pay off the balance immediately. You might have residual interest from the cash advance that you need to pay off the next billing cycle.
Even if you can’t afford to pay off the entire cash advance quickly, making early payments can decrease how much interest accrues and save you money. You can also look for ways to improve your credit to get access to credit cards and loans with better rates and terms. If you’re not sure where your credit is at right now, check your FICO® Score for free from Experian and use your Experian account to monitor your credit report and score.
At O1ne Mortgage, we understand the importance of managing your finances effectively. If you need assistance with mortgage services, don’t hesitate to reach out to us. Call us at 213-732-3074 for expert advice and personalized solutions. Our team is here to help you navigate your financial journey with confidence.
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