Anyone used citibank credit card cash-advance as a large-sum short-term loan?

[jmc0]

Scenario:
-Need to get $15k to pay someone fast; that person requires a draft/cert-cheque in their name, by next business noon.
-Current bank account only has $100 cash, other sources of funds are mostly locked-in.
-Will have $17k (i.e. able to pay back CC) when GIC matures in 9 days.
-Citi credit card currently has available limit of $16k.
-No other CC, or LOC has been setup.
-Cash advance rate: ~18%

1) Has anyone done this before using a Citibank mastercard at BMO, HSBC, etc.? (i.e. withdraw large sum of cash from credit card as cash-advance, and then have that bank write a draft payable to someone else with that cash)
2) Any gotcha?

Get Cash In Branch: Get a cash advance from a teller at any MasterCard-issuing financial institution around the world. Just look for the Cirrus logo and present your Citi Platinum MasterCard card and two pieces of photo ID to the teller. For a nominal fee you’ll get a cash advance up to your available limit. No withdrawal limits, no waiting, just cash in hand — fast.

Cash Advance Fee: Citi Cash Transfers and Citi MasterCheques, while treated as Cash Advances, are not subject to Cash Advance fees. $3.00 each for all other Cash Advance transactions.

[logik]

Scenario:
-Need to get $15k to pay someone fast; that person requires a draft/cert-cheque in their name, by next business noon.
-Current bank account only has $100 cash, other sources of funds are mostly locked-in.
-Will have $17k (i.e. able to pay back CC) when GIC matures in 9 days.
-Citi credit card currently has available limit of $16k.
-No other CC, or LOC has been setup.
-Cash advance rate: ~18%

1) Has anyone done this before using a Citibank mastercard at BMO, HSBC, etc.? (i.e. withdraw large sum of cash from credit card as cash-advance, and then have that bank write a draft payable to someone else with that cash)
2) Any gotcha?

There are no catches aside from having to pay 18% for the period of time you borrow the money. At 18% you're looking at just a little over $66 of interest over 9 days...although it'll probably take an extra couple of days for the payment to post.

If your willing to take the hit due to the circumstance, there are no catches...since you're already aware of the cash advance fee. That being said, some branches may not be able to accomodate a 15k advance, so you may need to split it up.

[tmms]

-Citi credit card currently has available limit of $16k.
[...]
2) Any gotcha?



Check, if there isn't another (lower) limit for cash transactions.

For example:
- credit limit: $16000, but...
- limit for cash transactions: $4800 (30% of the above limit, for example).

If so, buying a draft for $15000 could be problematic :(



.tmms

[halflife150]

Watch out for cash advance fees. I believe there was a recent change by Citibank that raised cash advance fees from 1% to 3% of the amount advanced. Strongly suggest reading your cc terms to see if that is true for you. That would almost be an extra $500 so you would only be able to send about 15.5k., pretty expensive but if it's the only option you have then you'll have to eat the excessive fees.

[joe1487]

Why not just ask your bank to give you a 9 day loan against your GIC? Most bankers are dying to offer secured loans against guaranteed investments. You'll probably get it at prime, too.

[bs9999]

Why not just ask your bank to give you a 9 day loan against your GIC? Most bankers are dying to offer secured loans against guaranteed investments. You'll probably get it at prime, too.

+1

[noob666]

just get a line of credit from the bank if you have assets with them. most of them is around 10%, it's sure better than all the fee with credit card

[nuberific]

Why not just ask your bank to give you a 9 day loan against your GIC? Most bankers are dying to offer secured loans against guaranteed investments. You'll probably get it at prime, too.

Lol.. he needed the money like 3 weeks ago. But oh well.

[jmc0]

just get a line of credit from the bank if you have assets with them. most of them is around 10%, it's sure better than all the fee with credit card
The bank I deal with will not approve loan or LOC on the spot. And I needed the cash basically within the same day...
Why not just ask your bank to give you a 9 day loan against your GIC? Most bankers are dying to offer secured loans against guaranteed investments. You'll probably get it at prime, too.
I haven't got the CC statement yet; but I already repay back everything, and do not expect any additional charges.