Avoiding Finance Charge

[sworshs]

I will be travelling to Asia during Christmas, my dilema is that I don't want to carry too much cash around with me. I probably will be spending about $1000 - $2000 in HK, however, that will be too much cash for me to carry around. I was thinking about prepay my credit cards, and later on just take cash advance against it. In this case, I don't have to carry cash around, and I can also avoid finance charge. By the way, many places do not accept traveller's cheque, or else, that would be the best thing to do. I called to verify with couple of the credit card company, they ranged from saying plain "NO" to bullsh*ting me around saying that's against the law to avoid finance charge. According to Bank of America, they won't do it because their terms and condition state that I cannot overpay my amount. Citibank was cool with my idea, but my cash advance limit was only $250! AT&T platinum was the worst, the CSR just tries to bs the h%ll out of me. She told me that it's against the law to avoid finance charge, I was like what da fock!?!?!?! I would like to know if anyone has done this before, and which credit card you used. Thanks!

 

[IBhacknU]

I'd be surprised if you can find a CC that offers cash advance without some type of charge. I think most cash advances have no grace period either, meaning you'll start accumulating fiance charges right away.

I'm not sure about the legality of it all. You may go to www.gomez.com as I think they rate banks and lenders and that sort of thing.

 

[Dameon]

Yeah, most of the time you would have:
- The ATM fee
- The Transaction Fee (% of cash advance)
- Daily interest (often @ higher rate than normal)

Overall, I would put credit card cash advance at the ABSOLUTE LAST on the list.
Have you tried looking into those "stored value" cards they offer nowdays from Visa & AMEX?

 

[sworshs]

Well, this is my logic: I prepay the credit card, so I will have a credit balance. Say before I leave for the trip, I put in $1000. When I am in HK, I withdraw the $1000. I am just withdrawing my own money after all! I should not inccur any cash advance fee or interest! Won't the credit in my credit card immediately pay for the debit amount????

On my previous trip, I was carrying traveller's cheque, and it gave me nothing but hassle. I was unable to use them because it's international cheque, and they been having fradulent cheques in the past. I can't even cash a traveller's cheque in the Bank! That's why I came up with this idea.

 

[kranky]

That idea sounds good, but as Dameon pointed out, you still would have to pay the transaction fee. On most of the cards I have that is 3% of the cash advance amount.

You can pay in advance on your cards - it's not "against the law". But again, you'd still have to pay the transaction fee which is pretty high.

Could you take travelers cheques and cash them at a bank? Or use your credit card to buy things instead of cash while you are there. Don't count on finding a card that has no transaction fee on cash advances - the cards that offered it got abused badly by customers.

 

[geoff2k]

How about getting one of those VISA cheque cards (I think Mastercard has them as well) that draw directly from your bank account?

 

[denali]

Use an ATM card to get cash in HK. Yes you might have to pay a fee check before you go. The advantage is that you will get very good exchange rates. When I travel I usually use my ATM card to get money because of the exchange rates are good. If using and ATM or CC make sure that you get one that uses a 4 digit pin, in amny countries they cannot handle anything else.

 

[IBhacknU]

you may also have to pay a fee for the conversion of currencies. Does HK use US dollars?

 

[bcterps]

There's no way around the finance charge for the cash advance. I understand that you're upset, but CC companies dont owe that obligation to you to give you the credit on your balance in the form of a cash advance. While a lot of places wont take traveler's cheques, you also arent gonna get the best deal on stuff by paying by credit card. Cash always speaks the best. Either withdraw money from an ATM or carry the cash seems to be the only solution, either way you're gonna be carrying the cash so just be careful with it. HK $1000-2000 really isnt that much to travel with, you dont have to declare it or anything.

--Ben

 

[StageLeft]

I think when I cash advance all that happens is I pay interest on the cash instantly - but we all know that when you buy something on the CC its interest free until the end of the period, so you can get a few weeks or more... just do that and put the cash in once you've made all the purchases.

I've carried a balance as low as $-80.00 on my credit card for a few days, I don't think its a problem for that...if its a couple of k just move the money in right after purchase if you want to.

 

[jjm]

In general, AMEX cards are the most accommodating for international travellers.

I think I read that all of the cards (VISA, AMEX, MC) offer a better exchange rate than you get walking into local banks. Before you go, convert a limited amount of US dollars to HK dollars, and then pay for most things with your credit cards. If you need to take a cash advance, so be it. I would not worry about it.

 

[cxim]

another thing to do is go to Western Union, Thomas Cooke or American Express & wire money to yourself that you pick up there. they will tell you how long they will hold it for pickup ( usually 10 to 14 days ).

Or have a relative here wire you money as you need it.

Some banks have branches there, pending where you live. They will wire money for you to pickup at the branch there ( all this involves a fee of course )

Money belt.

 

[irie]

You should get one of those new pre paid credit cards visa just came out with.

 

[sworshs]

Wow, thanks for the tips. Unfortunately in HK, most banks doesn't take traveller's cheque! I was in HK 2 years ago, trying to cash a traveller's cheque in Bank of China. They said in order to cash this, they will have to open a bank account for me, and I won't be able to withdraw until the cheque is clear which will take about 3 months! According to them, they said because they had a high volume of fradulent traveller's cheques! I was just curious how does the visa debit card works...where can I find more information on it???

By the way, when I say $1k - $2k, I don't mean HK$, I mean US$. I really don't want to carry the money around if I don't have to, cuz HK is my last stop of the tour.

Again, thanks for the suggestions.