Cash Advances thru Your Credit Card

Cash Advances

Credit card cash advances can provide consumers with a solution in those times you really need cash, but should be avoided at all times.

Admittedly, it is so easy to use your credit card for a cash advance. One, you already have the card and only need to use it, and two, it's more private because nobody need know that you are making a cash advance.

However, if you need cash fast, there are other ways to get it. Fast cash may seem very convenient, but when you look at the terms of how these advances are provided, then you realize that the convenience may come at too high a price.

Read on to know more about this type of cash advance. Interest rates for these types of loans can go as high as 20% to 25% whereas average credit card rates are typically around 13% only. A credit card cash advance also accrues interest immediately and have no grace period

Aside from interest rates, a cash advance is subject to fees at 1% to 4% or a flat fee.

As if these weren't enough, using an ATM to get your cash advance also has a fee.

So with so much money lost to interest and fees, is it still wise to get a cash advance? Probably not.

There are a few banks that do not charge large fees or high interest rates, but there are not many of them. In order not to be trapped into these kinds of fast cash loans, a little basic finance planning is all that's needed.