Is it possible to have a $50000 credit card cash advance limit?
Question by : Is it possible to have a 000 credit card cash advance limit?
I have been trying to learn about credit card cash advances, as I’m curious to learn how they work. How do credit card companies determine this limit? How high can this limit be? Thanks guys
Best answer:
Answer by Barnesy
Neither you or the lender would want a cash limit this high. If you need this level of cash then you would take out a personal loan. The interest rate would be less and the entire arrangement would be more manageable for all parties.
Typically, a credit card issuer does not like to see large cash-advances against a credit card. They often signify that a borrower is in some kind of financial stress.
The most sophisticated credit card issuers can see a cash-advance inside (or nearby) a casino and make rapid status changes on the account. e.g. a customer that has maxed out their daily card limit on debit card cash and then proceeds to run credit card cash-advances is probably not going to be the best credit risk.
This whole area is extremely complex. Banks hire large teams of statistical analysts to perfect lending models around cash advances. They then spend millions on systems that can act upon the models in real-time.
Know better? Leave your own answer in the comments!
$ 50,000 yes and far higher. Millions.
Credit card companies hold the answer to your question very close and encode that decision in one of two ways that I know of:
1) In computer software that makes the decision.
2) Private banking relationships.
I think you have a motive for your question that you have not stated. Knowing your actual goal would have been helpful to me to suggest a possible answer.
CONTACT: daveschram at sbcglobal dot net
ATMs apparently only hold about $ 35,000 at a time, but maybe after a lot of scrutiny a branch of the bank that issued the card would fill your briefcase with $ 100 bills. A few seconds on Google didn’t turn up much information. There might be some discussion of massive cash advances on gamblers’ forums. Interesting question. I might look into this more later.
It might be possible if the card had a $ 75K to $ 100K limit. Cash advance limits tend to be a percentage of the limit (for purchases). But someone with good enough credit to qualify for such a high limit card would have more sense than to take such a cash advance. They probably could easily set up a personal line of credit at a much better interest rate.
Credit card cash advances have fees of 3% to 5%, depending on the card terms. Interest begins to accrue immediately at the much higher cash rate. Not a very economical way to borrow moneyl
Even with no-limit cards their cash advance is not that generous…
Very doubtful
And, if someone were to withdraw 50k from their credit card the fees would be outrageous!
Most ATMs would not be equipped to spit out 50k either LOL