CHAPTER 4, SECTION 4 Cash Advances. I CAN… Calculate total finance charges on cash advances. Calculate credit card balances that include cash advances.

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