Depositing cash into checking, from credit card?

Question

The other day when I talked to a Bank of America CSR, they told me that I could deposit cash into my checking account from my Bank of America Platinum Plus credit card. This card is newly opened, and should have 0% APR and 0% BT through February 2008 (I'm going to verify this to make sure of the terms when I get the card itself, any day now).

My question is...how does the bank make money on this? If there is a 0% APR and BT promotional...I haven't read anything about charging cash onto my credit card, and depositing the cash amount into my checking account. So, how does this work? Even with the 0% APR, are they going to do something like try to clip me with a cash advance fee of some type? I know they make money off from this somehow, since they aren't getting interest right now. Has anyone ever done this, and was there any kind of additional 'fee' for it?

Answer 1

There might be a hidden fee, OR, the might just be doing this to collect fees from people who don't follow the rules. (i.e. make monthly minimum payments, or pay the balance in full by the end date). You'd be amazed how many people will end up paying for a 0% loan because they don't follow all the rules. The portion of people that miss paying on time get hit with huge interest & penalites that more than make up for the people that get free loans.

I've taken 0% credit card offers before, and paid them off before the end date, and truly had 0% loans.

It does sometimes exist. Just make sure to READ ALL THE FINE PRINT CAREFULLY because there are many offers that are not as good as they seem at first.

I hope that helps.

Answer 2

I don't have any experience with Bank of America, but I have done this with both Citibank and Chase. They allowed me to take a balance transfer from their credit cards as a cash deposit into my checking account. I got the promotional interest rate for whatever term they were offering and could invest the cash any way I wanted. I just had to remember to pay the minimum every month, not to charge anything else on the card, and repay the balance in full before the promotion ended.

There may very possibly be a balance transfer fee. It's very important to read the fine print to determine this. At the very least, you don't want a balance transfer fee to cause you to exceed your credit limit. Also, my experience is that the credit card companies have been greatly increasing the balance transfer fees recently. Sometimes they are so high as to make the offer not worth accepting, even at 0% interest.

The credit card companies are willing to make such offers because they expect a lot of people to let the promotion end without paying off the balance. Then they can make a large profit by jacking up the interest rate. They are fishing for new business, so it's up to you to be smarter than them, and only accept the offers that benefit you.

Answer 3

Wait for the card and read the agreement carefully (read the symbols and the fine print). Most cards will have a hidden fee somewhere, I would have a problem with the BT (Balance Transfer). In order for that to apply, you usually have to transfer money from another card or loan for that. To deposit their money, is usually a cash advance and other fees apply there, including a 3% fee on the amount.
Also read about missing a payment or being late only once. Most credit card company's will then charge you outrageous interest rates if on occasion your late or miss a payment.

Answer 4

Taking cash from your credit card and putting it into you bank account IS NOT a balance transfer. Balance transfer is paying off the balance on another credit card.

This would be a cash advance and as a minimum you would pay a fee. Your interest rate could also be at the cash advance rate and not the promotional rate.

Read thru all the fine print. Some cards require a certain number of purchases every month which are billed interest at the regular rate.

Answer 5

You better check your fine print. I have NEVER heard of cash advances being 0%. They are more like 22%

It is normally 0% on balance transfers and/or new purchases up until a particular date.

Answer 6

My CC Company sends me checks all the time that DO NOT have a fee attached to using them so I could use them, never have probably never will, and pay it off at the end of the month and it would cost nothing.

Read the fine print.

Answer 7

no way will they loan you cash for free. that is unheard of in the credit card industry. read the cash advance section in your service agreement book

Answer 8

If it's too good to be true then it is..some where there is a hidden fee...