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Credit Card v10
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thesurveyor
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 May 14 2010, 07:16 PM
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Getting Started
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Hey, got a question regarding finance charge due to cash advance. If I already has some outstanding balance (balance from retail transaction) for my CC and then later I make a Cash Advance transaction. When I want to pay up, can I differentiate the payment only for the cash advance?
Say outstanding balance is RM100 and Cash Advance later on is RM100, so end total would be RM200. Then I just want to pay up the cash advance amount RM100 only, would the payment be considered for the cash advance payment? Or I need to pay up RM200 to settle the Cash Advance payment.
Sorry if it is a stupid question, hope can get some explanation. Thanks in advance!
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thesurveyor
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May 14 2010, 11:42 PM
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Getting Started
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» Click to show Spoiler - click again to hide... « QUOTE(hye @ May 14 2010, 08:18 PM) Let me try ... guys you could correct me if I'm wrong. Banks treat the various transactions according to a hierarchy and may slightly differ bank-to-bank. Generally ... 1. Retail transactions 2. Outstanding balance 3. Cash advance and etc. What this means is that your payment priority will go to item 1 -> item 2 -> and so on. This enables the bank to ALWAYS maximize returns on the interest that they are able to recover from the consumer. In your case if you pay RM100, the money will go to outstanding balance. You still owe the bank cash advance. You need to pay RM200 ++ to clear the Cash Advance. Why I say ++ is that don't forget your interest is being charged on a daily rest. Lesson here : Please don't use Cash Advance and if possible avoid outstanding balance as once the bank is able to charge you interest, they will maximize the opportunity to the max. Don't blame the banks ... they are there to make money from the consumer. They are not charities. Period. Thank you for your sound explanation. So, banks do have hierarchy system, though, sounds abit unfair. But as you mentioned, banks are not the one to be blame in the end  |
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