r/discover • u/starqiyu • 3d ago
Help Credit Line Increase
I recently got approved for a credit line increase!! This might be a stupid question but what does the underlined part mean?
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u/jemar8292 3d ago
Not something I'd use because it immediately charges interest and it's so high.
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u/Comfortable_Arm7159 2d ago
Definitely a cash advance however there’s ways around it to make it not be taken as a “cash advance” so say you have a Wawa or family dollar and you need 20 dollars you can do the option where you get money back and that makes it so it’s not considered a cash advance but just a normal credit card transaction :)
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u/pakratus 3d ago
There is a Cash Advance fee, probably 5%.
If you don’t pay a cash advance balance in full by the due date, it will end your grace period for purchases too. Meaning all new purchases will start to accrue interest from day one also.
If you were in a situation where you needed a cash advance, you would want to pay it off as soon as humanly possible.
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u/Confident_End_3848 3d ago
Basically, you can go to an ATM and get a cash advance. As noted, interest starts immediately and there could be a cash advance fee.
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u/InterDave 3d ago
Cash advance. You use your credit card like a debit card, and take money out of an ATM, it will typically be financed at a Higher interest rate than the regular interest rate (see YOUR specific rate information for the details), and there may be a fee associated with cash advances.
tldr: You can withdraw up to $1,200 in actual cash money.
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u/stderr2 3d ago
You do not want to carry a balance. The credit limit is the most you can borrow without getting blocked and or in hot water. People who just start with credit may think that carrying a fraction of the credit limit over payment periods is okay. It's not okay!
Get a small loc and attach to your checking account. This is to protect against overdrafts. Set your credit cards to autopay minimum. This is the least likely to end in a late payment or problem. It also means you need to look at your account and pay the rest so you don't pay interest. Setting to pay entire balance with autopay discourages you from keeping track of your account. You need to keep track of your account!
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u/_love_letter_ 2d ago
Personally, I always opt out of overdraft protection. In the event of fraudulent charges or withdrawals, I want them to be declined and not to drain my savings or charge to a credit card. I keel the bare minimum in checking to maximize interest and minimize what can easily be stolen via debit/ATM. I just move money over from savings to checking when I need to. But I'm the type of person who stays on top of things so it works for me.
I don't use autopay either. I manually schedule a payment and also schedule an internal transfer from savings to checking the day before the payment is scheduled for, to make sure there will be enough in the account when the payment starts processing.
I don't really follow the logic of how autopaying the statement balance would cause one to lose track of their account.
To each their own.
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u/stderr2 2d ago
I'm talking about a small personal line of credit. It allows you to keep nothing in checking but still cover your minor mistakes. Yes, fraud could go through but it's not your money so more problems should not cascade.
I keep another checking account at a different bank just for the debit card. In that case, I usually have less than a hundred dollars there, it declines above that.
Debit cards are risky, somehow that account was already compromised by someone who tried to systematically drain it of funds. Very crazy but hardly any money mostly blocked them.
Auto pay minimum payment is just to make as sure as you can nothing will be returned. Your way is free climbing without a net, not a good idea in my opinion
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u/No-Light-7896 3d ago
Pro tip, if you need cash, buy something at a store and get cash back. It's a regular purchase then.
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u/No-Light-7896 3d ago
Again, as others has said, only use your CC to get cash if you REALLY need it.
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u/No-Muffin8342 2d ago
Don’t do it. Better yet clear any debt you’ve used from discover and throw the card away forever!
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u/UniquelyPeach 17h ago
Had the card for two years and they always declined my cli. Always paid on time, on autopay. SMH. Still stuck on $500.
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u/AltairLeoran 3d ago
It's called a cash advance. Don't use it. It lets you take a loan from your credit line that immediately starts charging you interest