Is Cash advance finance charge and Balance transfer finance charge the same?
These are set by your credit card company: They offer, and you may either accept or decline. It is typically the case that interest rates for cash advances are substantially higher than those for balance transfers. The company is anticipating that you will use balance transfers to move funds from a competing company’s card to their card, and hence sees a competitive advantage in offering a lower rate for balance transfers; however, savvy card users will obtain cash advances by transfering balances to cards with less outstanding balance than the amount transferred, and subsequently requesting a refund of the credit balance from the company which recieves the transfer. Sources: Terms of service notices and balance transfer offer letters of several banks.
