Posted on: 03rd Dec, 2009 01:26 am
A credit card cash advance will help you borrow money against you credit card balance. The cash available in this case will be a small percentage of your overall credit limit. There are some credit card companies which also use "credit card checks". These checks can be used as credit card cash advance. The borrower of the credit card cash advance would require a PIN from the credit card company in order to access the cash.
So, how can you get a credit card advance?
Are there any problems related to credit card cash advance?
Most of the consumer advocates are against the cash advance as there are some hidden strings attached to it. Have a look at some of the problems associated with credit card cash advance:
So, how can you get a credit card advance?
- The credit card user has to swipe his card at an ATM.
- The user needs to enters a personal identity number (PIN).
- He/she will receive cash in exchange.
Are there any problems related to credit card cash advance?
Most of the consumer advocates are against the cash advance as there are some hidden strings attached to it. Have a look at some of the problems associated with credit card cash advance:
- The cash advance comes at a high fee.
- The interest rate is higher than that of other purchased with credit card.
- No grace period available with purchases.
- As soon as the cash is taken out, the interest charges start accruing.
- Additional fee can be charged ATM access by both the credit card company and ATM owner.
It is true that cash advance comes with some strings attached to it. Repaying a cash advance can take a long time and can even turn out to be costly. It's better to go for the alternatives available in the market rather than going for credit card cash advance.
Here are some of the alternatives to cash advance:
Here are some of the alternatives to cash advance:
- 1. Local emergency hardship programs.
2. Loan from friends or relatives.
3. Payday advance from your employer.
4. Loan from your bank or credit union.
5. Due date extension from your creditors.
People are interested to take a credit card cash advance in cases where they require immediate cash. However, using a credit card to get cash means spending cash which you actually do not have. It's always better to take out a personal loan from a bank, or to use a home equity line of credit if situation permits rather than going for a cash advance.
It is true that people face lots of issues once they've taken a credit card cash advance. However, there are ways to handle these issues. Have a look at some of the ways which will help you handle the cash advance smartly:
Go through your credit card agreement - Reading through your credit card agreement will help you understand the terms and fees of cash advance. Call the customer service representative and ask if you've any doubts.
Take out what you need - Do not withdraw extra money. Though you're tempted for more, yet take out the exact amount you need. The little you take out, the easier it will be for you to pay it off.
Cash advance limit - Knowing your cash advance limit is very important. May be the cash advance limit is less than your credit limit. You'll have to pay overage charges as well as higher interest rates if you exceed the limit.
Go through your credit card agreement - Reading through your credit card agreement will help you understand the terms and fees of cash advance. Call the customer service representative and ask if you've any doubts.
Take out what you need - Do not withdraw extra money. Though you're tempted for more, yet take out the exact amount you need. The little you take out, the easier it will be for you to pay it off.
Cash advance limit - Knowing your cash advance limit is very important. May be the cash advance limit is less than your credit limit. You'll have to pay overage charges as well as higher interest rates if you exceed the limit.
You must know that the payments are first applied towards the lower interest rate. Thus, credit card cash advance or other higher interest rate balance keeps on increasing with finance charges. Thus, your cash advance can become more expensive. So, cash advance should be taken only during emergencies. Do not take cash out for regular expenses like paying off utility bills or buying groceries. Use it only when a sudden expense like medical emergency has cropped up.
you want o avoid using a credit card cash advance like the plague if it all possible.
You start paying interest on advanced funds IMMEDIATELY - there is no interest free period to pay it back and the interest rates are of course huge. as an emergency, sure, but really - get yourself a bank overdraft instead.
There's often a fee for cash advances too. Cash advancing is a trap for the unwary.
You start paying interest on advanced funds IMMEDIATELY - there is no interest free period to pay it back and the interest rates are of course huge. as an emergency, sure, but really - get yourself a bank overdraft instead.
There's often a fee for cash advances too. Cash advancing is a trap for the unwary.
You may be planning to take a credit card cash advance to pay off certain bills or other debts. However, check out some of the other options which you may look out for rather than cash advance:
Side job and overtime - If your boss permits, you can work overtime and get a overtime pay. You can use this money to pay off some of your bills. If possible, you can also go for a side job. Your hobbies can sometimes help you earn some extra bucks. You can use this extra dollars to pay off your creditors.
Extend due date - Rather than taking a cash advance, negotiate with your lender and extend your due date. Negotiate with him so that he does not charge a late fee for it and try to pay off the dues within the given time period.
Cut off unnecessary bills - If you want to get out of debt, you should first cut off on your unnecessary bills. Buy items which you desperately need. Don't overspend when you hit the malls. Make a budget for yourself at the starting of the month and stick to it. This will help you save quite some dollars. Use it to pay off your debts.
Side job and overtime - If your boss permits, you can work overtime and get a overtime pay. You can use this money to pay off some of your bills. If possible, you can also go for a side job. Your hobbies can sometimes help you earn some extra bucks. You can use this extra dollars to pay off your creditors.
Extend due date - Rather than taking a cash advance, negotiate with your lender and extend your due date. Negotiate with him so that he does not charge a late fee for it and try to pay off the dues within the given time period.
Cut off unnecessary bills - If you want to get out of debt, you should first cut off on your unnecessary bills. Buy items which you desperately need. Don't overspend when you hit the malls. Make a budget for yourself at the starting of the month and stick to it. This will help you save quite some dollars. Use it to pay off your debts.
all good advice here - the basic message is that you need to be completely clear on what the conditions of cash advances are. if you have other sources of cash availability, they are likely to be much cheaper and far better solutions to a cash shortage.
i might suggest, however, that i'd prefer to see someone who has a credit card get a cash advance long before i'd want them to go get a payday loan. those things are not nice.
i might suggest, however, that i'd prefer to see someone who has a credit card get a cash advance long before i'd want them to go get a payday loan. those things are not nice.
I agree, George, that rather than taking a payday loan, it's better to go for credit card cash advance. However, what about a payday cash advance from the employer? Do you think it would be a good alternative to the option of cash advance?
sounds good to me, sara, if there's an employer who'd be willing to do that. do they still exist? with the economy as it is now, companies' payrolls are not exactly as liquid as they might have been in the past, i'd think.