Cheaper Cash from Credit Card

lucky_12June 6, 2009

Here is a tactic I used to get money out of my credit card to pay a creditor who doesnÂt accept credit cards. Instead of getting a cash advance, I found a local supermarket that accepts credit cards. I purchased a money order made payable to the creditor. That way, I avoided paying a huge cash advance transaction fee and having my interest rate go through the roof.

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dilly_dally

How much does the money order cost?? The fee may be greater than the "savings".

A place that accepts credit cards will also accept debit cards. Sometimes a debit card is the way to go and you never have to worry about overspending or running up debt.

    Bookmark   June 6, 2009 at 8:17PM
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cynic

I assume this creditor wouldn't take a check? Or you didn't have the money?

    Bookmark   June 6, 2009 at 9:03PM
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ilene_in_neok

Well, Lucky, that is rather creative. I'm assuming Cynic's assumptions are correct.

I don't think a money order costs very much, maybe a couple dollars, right? Plus if you have a credit card that pays cash back, you might earn part of the cost of your money order back that way.

The only thing you have to consider is, will you have the money to pay the credit card in full when the bill comes? If you won't, then you'll have to pay interest and all that, and you can rapidly get your credit card maxed out. Not a good thing. If paying the credit card off each month is your plan, then you can rapidly get yourself in a situation where, after you have paid off your credit card, you have nothing to live on, and have to use the credit card for everything you buy till next payday. This will work OK, I guess, till something unplanned happens, like an unexpected expense or loss of income. And life being what it is, that's almost guaranteed to happen. But I guess you know that.

    Bookmark   June 7, 2009 at 5:12PM
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