It is easier for getting a cash advance from your credit card than ever. Before you insert your credit card into an ATM machine, there is one factor you should consider, the expenses associated with taking a cash advance from your card. There are number of fees and other fine print issues that must be considered, while withdraw cash as cash advance credit card is allowed to be one of your credit line.
Recently, unless you take the advantage of a zero (0%) interest of credit card cash advance offer, you will also being charged a higher interest rate on the money you take out. This is the example, one of a popular credit card with a variable 11.23% interest on purchases will going to charges 23.49% on cash advances. The rule with no exception, regardless of your credit card, you will be charged 23% or maybe the higher interest rate on your cash advance balance.
Not stop there, but there is another sticky issues here. When you repay your loan amount, your money will go to the balance that is being charged in the lowest rate first. For example, you have a $1500 balance from your purchases at 11.23% and a $500 balance from credit card cash advances at 23.49&. Until you have paid off the $1500 from the purchases, you will continue to pay the higher interest rate on your credit card cash advance. Yes, this is an unfortunate trap that make many cash advance users fall into.
To avoid the messy interest rate situation having purchases and cash advance balance on the same card it is probably better to get a new credit card for your cash advance, if you have balance with your current credit card. It does not cost any money when taking a cash from your credit card, however the wise use of a cash advance can limit the very high expense taking a cash advance often entails.
You should consider another cash advance sources for your unexpected need like payday cash advance loan. You can go online for looking to compare the interest rate between the online quick loan companies.
You may read my other articles about unsecured loan for bad credit & instant loan cash.
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