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CREDIT CARD CASH ADVANCES
Did you know that you can get a cash advance in the
amount of your credit card's available credit line? In
fact you can utilize a credit card cash advance from
anywhere in the world. Please note that you will likely
pay higher interest rates when requesting a cash advance
while in a foreign country.
What is a credit card cash advance?
A cash advance is a loan. Companies like American
Express, Discover and any type of travel or
entertainment credit card issuer can not grant credit
card cash loans. Why? Because they are not bank. A money
advance can only be obtained from bank issued credit
cards like Chase, Citibank, Bank of American, Bank One,
What are the main differences of charging cash with
your credit card and getting a loan?
Credit cards offer a grace period from the time a
charge is made to when you will be charged interest
fees. Typically a grace period is for twenty or
twenty-five days. So, if you pay off your credit card
within the grace period time frame, you will have
avoided paying interest. Whereas with a credit card cash
advance, you will pay start incurring interest fees the
instant your loan is received.
What kind of interest rates are associates with
advanced credit card cash?
As with regular credit card interest rates, cash
advance fees are going to vary for each card offer. You
will need check out the terms and conditions of the card
you are interested in to learn what its cash advance
**Please note that it is not uncommon for grace period to
be eliminated when a cash advance is being utilized.
This is one sneaky way credit card issuers make money.
Additional fees associated with credit card cash
Most card issuers will charge a fee as much as 4-5%
of the amount of money you receive from your cash
advance. Its like a clothing store charging you a
purchasing fee in addition to the cost of the new jacket
you are buying. This can be very costly. In
essence, you can be paying an APR of 100% or more when
you total this extra fee to the the 17-21% interest you
are being charged for cash advance!
When should a cash advance be utilized?
Credit card cash advances should only be used for
emergencies or when traveling. Combined with the high
interest rates and no grace period, you will end up
paying a great deal of money for credit card loan.
Writing a check or getting cash from your savings
account is going to cost you nothing in interest, and is
a much wiser idea.