If I took $100 and paid a card, took the money off after it clears and pay another card the same $100 and then pull it off again after it clears. Its like I've paid my bills without really spending any money. All I lose is a finance charge.
Sounds too easy though. Is it illegal?
2007-11-30 04:10:00 · 4 answers · asked by Janey 1 in Business & Finance ➔ Credit
pull money off = atm or cash advance the same money from the card I just paid.
I'm not having financial trouble , it was just an idea that occured to me to save some money in a short term this month only since Christmas is coming. And I can't afford my normal monthly expenses AND a major holiday.
2007-11-30 04:18:53 · update #1
There is nothing illegal about that, but eventually you will run out of room on the card. These finance and cash advance fees add up. These amounts will start to "snowball" as your balance increases, so in a few months you will be at your maximum credit limit and can not do it anymore.
If you are having this much trouble making payments you need to immediatly stop using the card and talk to a reputible non-profit credit counsler. You can go to http://www.nfcc.org and search for one.
2007-11-30 04:16:31 · answer #1 · answered by OC1999 7 · 3⤊ 0⤋
Unless your cards are different from mine, the finance charges on cash advances are much higher than the normal APR. I’m not sure it would save you anything because of that.
2007-11-30 12:20:59 · answer #2 · answered by Anonymous · 0⤊ 0⤋
No, it isn't illegal, but you'll be running up huge finance charges. And those start right away on cash advances, you don't get a grace period.
2007-11-30 12:29:44 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
technically its called Kiting and its an offense especially if you do that between checking or savings accounts at different banks. I wouldnt keep it up for too long.
2007-11-30 12:18:39 · answer #4 · answered by Libby 3 · 0⤊ 0⤋