Credit cards cash advance to fund down payment

[Pirom Ting]

My wife and I are thinking to take out cash advances from her credits cards, to gift over to my account for a down payment on an investment property. We're looking to get $15K-$20K out of it.

We're looking for advice on whether this is a good idea or not. 

The property we're looking to buy is between $75K-$100K with repairs needed. 

In the end, worst case scenario, we would be able to sustain payments on the credit card and the mortgage if necessary. We are just trying to get the down payment faster than just saving up for it.

Thanks

Pirom

[Alexander Felice]

This can be a really good strategy, or a catastrophic one.

Borrowing cash against your credit card is really no different than any other line of credit. You just have to be careful because the terms for credit card cash advance are downright LOUSY to say the least.

things you want to look for:

1. cash advance limit and credit card limit are generally not equal. a 20k credit card might have 5k cash advance limit.

2. cash advance has a different rate than for purchases. I have cards that are 18mos @ 0% but for cash advance the rate is 22%. Make sure you KNOW the terms that you're borrowing, don't assume you know

3. cash advance has a fee. This is the most minimal part, but make sure you know if there are any fees associated with an advance. usually it's ~$15

if you can use the card and still be profitable then go for it. The ease of use is very appealing. The cost can be brutal though. Heloc would be a much better method if available.