subject: Things You Need to Know About a Cash Advance Card [print this page] Things You Need to Know About a Cash Advance Card
Many people who have access to a credit card will probably be aware of the fact that they have the ability to use some of their line of credit to obtain cash advances. But before you jump in headfirst and see this as a way of solving your short term money problems, you will need to be aware of some of the hidden costs of a cash advance card.
When people are faced with cash emergencies that cannot be charged to their credit card in the conventional manner, it is often tempting to take advantage of the cash advance facility that most credit cards offer. But, before you use you credit card as a cash advance card you will need to be aware of some of the hidden costs associated with credit card cash advances.
When you use your credit card as a cash advance card there is an almost certain chance that you will be charged a cash advance fee on these transactions. These fees can range from 5% to 10% depending on the type of credit card you have, and in addition to these fees you will also be charged interest on the amount you withdraw from your cash advance card.
Most credit card companies offer an interest free period on credit card transactions, but in the majority of cases when your card is used as a cash advance card, the interest free period does not apply and so you will be required to pay interest on your cash withdrawal from the moment you make this transaction. Not only that, most credit card companies will actually charge a higher interest rate on cash advances and you could end up paying up to 23% interest on cash advance card withdrawals.
Now, sometimes the need for cash is unavoidable and the good news is that if you find yourself in a position where you do need cash urgently there is a better way to get it than through a cash advance card. Payday loans or cash advance loans can provide you with the cash you need within 24 hours and the fees charged for these loans will end up being far less than you would pay your credit card company if you were to use your card as a cash advance card.
Payday loans are easy to get and because they are unsecured, the application process is fast and hassle free. These loans are settled from your next paycheck and so, unlike a cash advance card where you can end up spending years paying back your cash advance, a payday loan is settled within a month and so won't add any more strain to your household budget.
There are many lenders who deal exclusively with payday loans and most of these can be found online. The application process can be done over the Internet and the money transferred to your bank account generally on the same day.
So, before you jump straight in and use your credit card as a cash advance card be sure to first check out a payday loan lender, as you could end up saving yourself a fortune in interest and fees.
