CHAPTER 4, SECTION 4 Cash Advances

I CAN…  Calculate total finance charges on cash advances.  Calculate credit card balances that include cash advances.

SO WHAT’S A CASH ADVANCE?  When you get cash from an ATM using your credit card, or by using checks provided by the credit card company.  Charges for cash advances are HIGH!!! There is usually a fee and the APR is higher for a cash advance than for purchases.  Periodic charges begin on the day you withdraw money and there is NO grace period!  Example 1  Check you understanding A & B

SO WHAT HAPPENS IF I MAKE PURCHASES & GET A CASH ADVANCE?  You must calculate your finance charges separately because the rates for each differ.  Example 2  Check your understanding C & D

LET’S PRACTICE  P. 151, 10-17