Use the Cash Advance Offer on a Rare Occasion By Michael Huch At Isnare.com Ezine Articles

Being able to get cash when you need it most is a good thing. But using your credit card to get it may not be as good a thing as you may think. Many times credit card companies tack on more finance charges for a cash transfer than they do for using your card for a purchase.

Getting a cash advance through your credit card can be more trouble than they are worth. Once you get the loan then you have to pay it back and many credit card companies use one of a few methods to calculate what you have to pay back. First some companies charge a percentage of the cash advance. It could be 1% to 4% of the cash advance. Another way is that they charge a flat fee meaning that they may charge a $10 flat fee for any cash advance. Some companies use both of these methods meaning they can charge 3% for the advance and charges $10 no matter how much the cash advance is for.

It is a good idea never to use an ATM machine to get your cash advance. Most ATM owners also charge a fee for using their machine. If you get a book of checks from your credit card company remember every check you write is just like a cash advance and you will be charged the same charges.

Cash advances begin immediately acquiring finance charges are not subject to any grace period. Many issuers apply payments to the credit card before they apply the cash advance payment. If you carry a credit card balance from month to month this can result in a dramatic increase in finance charges.

So the bottom line is that when it comes to getting the cold cash you need right away you may be better off taking out a loan or borrowing the money from a family member than getting a cash advance on your credit card. It sounds like it may be a solution to your problems but in reality it can be what makes the problem worse. Cash advances are what the credit card company is hoping you need because they make tons of money and you get deeper in debt.

The only time you should use cash advances is in extreme emergencies. Only if there is absolutely no other way that you can get the money. You should always try to pay back any cash advances as soon as possible. Since a cash advance is going to cost you more in the long run because of the higher APR rate and finance charges you should only take out a small loan when you absolutely have no other choice. When getting a cash advance off of your credit card remember that your interest rate will not only depend on the amount of the cash advance but the balance that you carry on the card. So the next time you need cash for an emergency weigh your options carefully before you get a cash advance from your credit card.

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