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Your post is confusing so I will stick to the basics.

If you want $5,000 apply for a credit line and withdraw from there. There are no limitations on cash withdrawals and a lower interest rate.

If you take a cash advance from a credit card, high interest will start immediately. There may also be a limit on the credit card how much cash you can withdraw as an advance.
 

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I do not find the post particularly confusing. Inelegantly drafted perhaps (as my posts here tend to be), but no worse.

I disagree that "high interest will start immediately" if you take a cash advance on a card which has a positive balance of greater than the advance amount. Been awhile since I have done it, but I know I have done it with both Canadian and U.S.-based credit cards.

For a lively on-point discussion of the topic, see:

https://www.canadianmoneyforum.com/showthread.php/135196-Credit-Card-with-positive-balance-for-foriegn-cash-withdrawl?highlight=credit+card+cash+advance

I'll leave you to deal with LTA who, if the content of the thread cited is any indicator, will scold you about using a credit card and not a debit card.
 

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Just seeing the thread's title "Credit card with credit balance" asked by a "knowlegeable" "ex-banker" is surprisingly (shock?) enough.
 

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I need to start asking for a commission every time Beaver quotes me. Makes you wonder why this site has only a few dozen active members.
Apparently all the experts have all the all answers. Disappointing that it’s assumed everyone knows all the answers all the time.
 

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I need to start asking for a commission every time Beaver quotes me.
... yes, you should do that. Helps with the sales, even in retirement.

Makes you wonder why this site has only a few dozen active members.
... you could ask the longest resident on this forum that question. Regardless, a few dozen is better than a dozen I guess.

Apparently all the experts have all the all answers.
... aren't they supposed to? I mean there're a couple forum members that I'm encountered who had provided the know-it-all-responses and they too have inferred about "charging" or "billing" their time here for their theoretical (or more like rhetoric :rolleyes2:) responses.

Disappointing that it’s assumed everyone knows all the answers all the time.
... I didn't merely assumed "everyone" knows the answers all the time, only those who claimed they were in the industry or the "professionals". Actually, I had expected such "professionals" (aka these "industry experts") to have known the answers. Afterall, they are "paid handsomely" (non-commissions of course) for their "expertise".
 

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We have just come back from an 8 week trip. We use a Home Trust card when we travel.

We establish a credit balance and we monitor it to ensures that it always remains in a large enough credit position. We get our funds via cash advance on this credit card. We have never been charged interest. We make certain that we are at a credit balance when we take the funds and when our monthly billing statement is processed.

There is no FX charge BUT there is a 1.5 percent service charge levied by our credit card provider. The bank ATM`s that we use charge different amounts and to date have always been one time fixed charges. In Thailand it was about $7Cad. In Mexico it was $0 at Santander bank branches and $2 if the banks ATM was in a store. We paid zero in Australia.

Never had a cash advance in Canada so I cannot comment on the ATM fees.

We have used this method for the past six years or so. First on the Marriott Chase Bank visa. Now, on the HT card since the Marriott Chase Bank card was withdrawn.

I have no idea what banks charge for a credit line. One thing though. Our Capital One MC has had a credit balance from time to time. because of a refund or overpayment. On two occasions the credit card has actually sent us a cheque for the credit balance-both times under $300. I was quite surprised at that. This has not happened at HT but is one reason why I monitor the account after the statement date to ensure that the credit balance has not been wiped out with a refund cheque from the card issuer.
 

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I guess I am wrong. I thought the OP said they were going to increase the limit on the credit card from $5000 to $10,000 and then withdraw $5,000 as a cash advance.
 
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