Is this true or a myth about cash advances & CLI's?

[MikeyMagic]

---

@markbeiser wrote:

I can personally confirm that both BoA and Discover will specify a recent cash advance as a reason for a CLI denial, in addition to whatever normal reason codes that pop up.

---

Thanks for all the replies. I guess taking cash advances is NOT good and won't increase the chances of a CLI.

[FlaDude]

Most cards charge a % fee for cash advances on top of immediate interest. I certainly don't need any CLIs enough to pay for them like that.

[Zoostation1]

@MikeyMagicsome lenders treat taking a cash advance as a negative no matter how fast you pay it off.   The mere fact of taking it can be treated as a negative by lenders.  Whether it should be treated that way is debatable, and I personally have the opinion if you pay it back quickly (ie a instance where your debit card caps out and you take out a cash advance but pay if off plus the interest in a week- or anytime  before the statement). IMO, no lender should treat that as a negative if you're not carrying the  balance over, but that's not the world we live in.

[MarkintheHV]

Only a couple of times in the past 20 years have I taken a cash advance, and those were for emergencies.  They were completely paid off within a couple of weeks.  I dont think the cc companies intended for credit cards to be used like ATM cards.

Personally, I would stay away from doing any cash advances except in an emergency.

[SouthJamaica]

---

@MikeyMagic wrote:

Hey all!

So I have read on other forums that a little "hack" to help getting faster and bigger CLI's from credit card companies or banks is to do a cash advance or even a couple.

From what I read, these companies and banks like this because of the immediate interest charged. Also if you do a cash advance and pay it back in a reasonable amount of time - that would make these companies and banks want to increase your credit limit and cash advance amount so they hopefully get more interest charged when the customer does another one.

Is this true or could be true or false?

Thanks so much

---

It's untrue. And it would be a very expensive waste of money.

[markhs777]

By definition taking a cash advance and paying  a fee and interest rates approaching 30% means you have financial issues.

The highest default rates are those who make a habit of using cash advances.

No way FI's will reward you with more credit available for doing this and will keep an eagle eye on you.

[Zoostation1]

@markhs777I would disagree that just taking a cash advance in itself means financial issues.  If you're taking one because you're debit card crapped out while travelling and or there's an issue with your bank and you need cash immediately for something but have the means to pay it almost immediately, I think that's a different situation than someone taking out a cash advance due to finacial woes.   If you're taking a cash advance out cause money is tight I would agree you're likely not making a good decision and  wouldn't take one myself due the potential AA from lenders.

[markhs777]

You make a valid point, in an emergency or need immediate  a cash advance iis an option albeit an expensive one.

It's more being a habitual user of that option that would indicate financial stress.