Cash Advance Discover IT (NOT "Cash Over")

Question

I saw in another post that cash advances from Discover are not recorded as a cash advance on your Discover account, rather listed as just a purchase. Anyone know if this is true? I use my Wells Fargo Visa as my overdraft protection for my checking acount and 14 months ago I used that service. When applying for a CLI that was the reason used for the denial - that I had a cash advance in the last 18 months. I don't know if I could even use a credit card not issued by Wells Fargo as overdraft protection. To sum up: 1) are cash advances not seen as cash advances, but rather just a purchase, by Discover2) are cash advances always looked upon negatively (obv Wells Fargo Visa views them this way or it would not be used as a reason to deny a CLI)3) if the answer to question #2 is yes, would I even want to use Discover as overdraft protection for a Wells Fargo checking account, would Discover see it in a bad way4) since an overdraft is not reported on your credit report, yes the balance is, but I don't believe anyone could determine if a cahs advance was made just by looking at my CR - when I apply for a mortgage could this be identified?

Answer 1

kdm31091 wrote:
tufa4311 wrote:
kdm31091 wrote:
But if you don't care about interest, then what does it matter whether the cash advances comes up as a cash advance or a purchase? You're not coming across rude; just a bit unclear as to what you are asking. Anyway, I don't understand why you are so concerned about overdraft/cash advances. In my opinion, there should be no reason to ever plan to take a cash advance i.e. it should be an emergency. And why you would ever expect to have an overdraft is confusing to me, too. In short....why are you planning for this to happen? It's confusing. No offense but if you are planning to take on a mortgage I think you need to be able to manage your money without resorting to cash advances and/or overdrafts. That sounds rude but it's the truth. No an overdraft will not hurt your credit but I could see lenders looking on it poorly because it's showing lack of responsibility for your money.As I noted in my original post - I was denied a CLI due to the fact that I took a cash advance on the card. There is no planning on getting an OD or CA, there are no worries on managing money, I pay all cards off in full after reporting every cycle, I was already approved for a mortgage 15 months ago but decided to wait. I am in a better financial situation now, money and credit score wise, then I was then - there is only trying to determine what harm the advance I took in the past has done. And, no, it doesn't sound rude, why would that sound rude? As for why I am asking these final two questions - becuase I am interested. I did not realize a cash advance was looked at in a bad light by creditors and I am a person that has an interest in educating themselves on these issues. When I joined myFICO I knew about as much on credit as your average Joe, now I know much more but will always be a student. I did not realize I had to justify why I have the questions I have but I hope I have justified them to your satisfaction. Now, where were we, ah, yes, my last two questions: 2) are cash advances always looked upon negatively (obv Wells Fargo Visa views them this way or it would not be used as a reason to deny a CLI) 4) can an over-draft be indentified on a credit report, and if so, can this affect a mortgage application (I edited this question for clarity)I think being denied a CLI because of a cash advance is because of risk. Generally someone who is taking a cash advance is desperate for money and has no other option. This doesn't bode well for a creditor wanting to extend you more credit and therefore more risk. That is why it is looked upon negatively, and also why if you notice, with most cards your cash limit is far, far less than your actual credit limit. I don't think an overdraft can show up on a credit report so no it would not hurt your mortgage app.Thank you, those spoke directly to my questions, much appreciated. With regard to the cash advance, it was my fault done when I knew less about credit. I used a credit card to make my monthly car loan payment at my credit union thinking I was showing good use, however, I did not realize that it was not a credit card charge. They were first taking a cash advance, then putting it towards the car loan payment. It was my ignorance on credit at the time for not realizing that it mattered how they did it at the credit union counter. With regard to the overdraft protection, I had multiple accounts with multiple institutions, checking and saving, that I don't really need but were set up when I first opened the accounts. I had an auto-transfer set up to take X amount of dollars out of one account and deposit it into another. I then changed the account that my salary is auto-deposited into thus leaving nothing in the account that the transfer was supposed to come from.  Time came for the auto-transfer and nothing was there so overdraft protection was used. Happened once which then kicked me into closing all these extra accounts I don't need - but the damage was done. How much damage, how long it would affect me, and who could see it I did not know thus the reason for my post.