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Cash Advance Fees (05/26/04)
FULL STORY:
Going to a bank or hitting an ATM for a cash advance using your credit card has always been a bad deal, since you have to pay a special fee based on the amount advanced, a higher interest rate than what you pay for purchases, and interest charges start immediately. But the deal has gotten worse as the fee for taking a small advance has increased 250%, and the fee for larger advances has soared by 900%, over the past fifteen years. In 1989, nearly all major bank card issuers charged a cash advance fee of 2% with a $2 minimum and a $10 maximum fee. Today, all major bank card issuers charge a 3% fee with at least a $5 minimum and no maximum. Cardholders taking small advances or big advances are most impacted by the change. As a result, the fee for taking a $100 credit card advance for 30-days has gone up 250% ($2 versus $5) and the fee for taking a $3,000 cash advance has increased 900% ($10 versus $90). If you need cash in hurry, using a debit card at an ATM is a better deal but only if you are using it at a no surcharge machine. Using your ATM card to take a $100 advance at an ATM that is not in your bank's network could cost nearly as much as a credit card. Best bet: squirrel some cash in your shoe.
CASH ADVANCE FEES - $500 Bank or ATM Advance
1994 2004
1. Citibank $10.00 $15.00
2. MBNA $10.00 $15.00
3. Bank One $10.00 $15.00
4. Chase $10.00 $15.00
5. Discover $12.50 $15.00
6. Capital One $15.00 $15.00
7. Am Express $10.00 $15.00
8. Bnk of Amer $15.00 $15.00
9. HSBC/HH $10.00 $15.00
10. Providian $25.00 $15.00
AVG $12.75 $15.00
Source: CardTrak (www.cardtrak.com)
CASH ADVANCE FEES - $1000 Bank or ATM Advance
1994 2004
1. Citibank $10.00 $30.00
2. MBNA $20.00 $30.00
3. Bank One $20.00 $30.00
4. Chase $10.00 $30.00
5. Discover $25.00 $30.00
6. Capital One $30.00 $30.00
7. Am Express $20.00 $30.00
8. Bnk of Amer $30.00 $30.00
9. HSBC/HH $20.00 $30.00
10. Providian $50.00 $30.00
AVG $23.50 $30.00
Source: CardTrak (www.cardtrak.com)
CREDIT CARD CASH ADVANCE FEES
1994 2004
1. Citibank 2% ($5min/$10 max) 3% ($5 min/No max)
2. MBNA 2% ($2 min/No max) 3% ($5 min/No max)
3. Bank One 2% ($10 min/No max) 3% ($5 min/No max)
4. Chase 2% ($2min/$10max) 3% ($5 min/No max)
5. Discover 2.5% ($2 min/No max) 3% ($5 min/No max)
6. Capital One 3% ($10min/No max) 3% ($5 min/No max)
7. Am Express 2% ($2.50min/$20 max) 3% ($5 min/No max)
8. Bnk of Amer 3% ($2 min/No max) 3% ($10min/No max)
9. HSBC/HH 2% ($2 min/No max) 3% ($15min/No max)
10. Providian 5% ($3 min/No max) 3% ($10min/No max)
Source: CardWatch (www.cardwatch.com)
CURRENT CREDIT CARD CASH ADVANCE APRS
1. Citibank 19.99%
2. MBNA 19.99%
3. Bank One 19.99%
4. Chase 19.99%
5. Discover 22.99%
6. Capital One 19.90%
7. Am Express 18.99%
8. Bnk of Amer 19.99%
9. HSBC/HH 19.99%
10. Providian 19.99%
AVG AVG 20.18%
Source: CardWatch (www.cardwatch.com)
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