What Is a Cash Advance on Credit Card?

| May 15, 2013
Cash Advance on Credit Card

Cash Advance on Credit Card

A cash advance on credit card is the facility of using your credit card at the ATM or over the counter at banks and other financial institutions. Credit card companies often offer convenience checks so that you can draw out a cash advance. However, when you are looking for information like ‘this place offers cash loans’ you might want to look otherwise than taking out a cash advance through your credit card. There are other alternatives like payday loans or local credit unions, from where you might obtain cash loans. Cash advances through credit cards always have heftier financial repercussions in the long term.

Make an informed decision

In case you feel like using your credit card at the ATM, make sure you are aware of the terms and conditions of cash advance through your credit card. If the service is available with your card, you should definitely check out the rate of cash advance interest of your card, as this is going to be the major extra expenditure that you have to repay. Other minor fees include ATM fees, and transaction fees among others. In addition, credit card companies usually do not offer any grace period on the repayment of cash advance loans, so, you might want to check this aspect of your card. Read thoroughly the terms and conditions of your credit card, and in case you do not understand something call them at the customer care and get clear. Ask about your cash advance limit and other aspects mentioned above. Do not forget to ask how a cash advance is going to affect your credit report.

Alternatives to cash advance

Your best bet to get emergency financial assistance to find a company that advertises its services as ‘this place offers cash loans’. Mostly, payday loan companies market their services in such a manner. Therefore, it is reasonable to check out the various payday loan companies. Compare the various interest rates and see what is going to be more expensive, the credit card cash advance, or the payday loans. Comparing is the best way to go about this matter, as it provides a clearer perspective on your financial burden. In case you find that the credit card interest rate for cash advance is much more than that of a payday loan, you should go for the latter one.

Check out the various aspects of the loans

So, you find yourself a company that claims, ‘this place offers cash loans’. You inquire there and find that the interest rate is lower and there are no additional fees. To top it all, you find that the company is offering you a loan despite your poor credit score. Although you may be finding all the facilities and repayment conditions convincing enough, yet you should definitely verify whether there are any hidden costs. In financial matters, the ‘too good to be true’ adage prove true almost every time, so for your own safety, you should thoroughly go through the terms and conditions that defines the taking of the loan and the repayment of the loan.

What Is a Cash Advance on Credit Card?

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