While cash advance credit cards allow you to use part of your credit line to withdraw cash, there are a number of fees and fine print issues that must be considered before proceeding with a cash advance. Getting a cash advance from your credit card is easier than ever. However, one must be aware of the expenses associated with taking a cash advance before inserting their credit card into an ATM. While there are a limited amounted of credit cards that offer 0% cash advances for 1 year, most charge much higher interest rates on cash advances than they do on regular purchases.
First off, there is a 99% chance of being charged a cash advance fee. Of the over 70 credit cards covered on Credit Card Depot, I could not find a single card that charged less than a 2.9% cash advance fee. Some cards even impose a $10 minimum fee. That means the cash advance fee can be 5-10% if you are only taking $100 or $200. Taking out less than $300, therefore, can be expensive.
Now, unless you take advantage of a 0% interest cash advance offer, you will also be charged a higher interest rate on the money you take out. For example, a very popular credit card with a variable 11.24% interest rate on purchases charges 23.49% on cash advances. This is not the exception, but the rule. Regardless of your credit, you will likely be charged 23% or higher on your cash advance balance.
There’s another sticky issue here. When you repay your credit card, your dollars go first to the balance that is being charged the lowest interest rate. For example, let’s say you have a $2000 balance from purchases at 11.24% and a $1000 balance from cash advances at 23.49%. Until you have paid off the $2000 from purchases, you will continue to pay the higher interest rate on your cash advance. This is an unfortunate trap many cash advance users fall into.
Now, there are ways to limit the expense of taking a cash advance from your credit card. First, you can find offers that will give you a 0% interest rate for 1 year. At the end of that year, you can pay the cash advance balance in full or, if your credit is good enough, transfer that balance to a 0% balance transfer credit card. However, if you do not repay the cash advance, you will get hit with an interest rate in the mid to high 20% range. Also, you may be charged a balance transfer fee.
If you have a balance on your current credit card, it is probably better to get a new credit card for your cash advance to avoid the messy interest rate situation having purchases and cash advances on the same card creates. Also, if you cannot repay the cash advance in a short period of time, you could transfer the balance to your current credit card and pay a much lower interest rate on your cash advance.
Taking a cash advance from your credit card does cost money. However, the wise use of a cash advance can limit the astronomical expense taking a cash advance often entails. By taking interest rates, cash advance fees, and the fact that paying off a cash advance on a credit card with a balance is not that easy into consideration, one can effectively use a cash advance credit card without falling prey to the traps in your credit card’s fine print.
©2006, Credit Card Depot Inc. This article may be reprinted as long as a live link to http://www.credit-card-depot.com remains intact.
The author is President and CEO of Credit Card Depot Inc, an online credit card comparison site, featuring over 70 current credit card offers, including 0% cash advance credit cards. At Credit Card Depot, you can compare credit card applications and apply online for instant credit card approval.
Article Source: ezinearticles.comSometimes it does happen that before payday comes, one completely runs out of funds and it becomes very difficult to carry out his/her daily activities. So, if you are short on cash, a company that offers cash advances may be able to help you. Deferred deposit loans, are commonly known as “cash advances” or “payday loans”. Typically, a cash advance is a short-term advance that is due on your next payday that is the reason it is also known as “payday loan”. Day by day it is becoming more popular method for consumers to access speedy liquid cash.
As every loan is given for a certain time period, payday loans are also given for a period of not more than a month; however under special circumstances the period of time can change. Some people are under the misconception that cash advances or payday loans are taken in advance for their payday and are not to be returned. But in reality they are just loans and are to be cleared off. If one has taken a payday loan, no matter what the time of repayment be, one has to pay a flat fee, as it is a compulsion. If someone is in need of fast cash and wants to opt for advance cash, he/she should be employed and must have an active bank account. As it comes to the amount of the fees payable, it is generally fixed at 25% of the total amount of money borrowed. Another important fact to be considered is that there is a limit to the amount one can borrow as payday loan. The loan amount is generally fixed up to a maximum of $500 to $1000. With such a high fees attached with it, they are very expensive way to borrow.
Previously, it was not very easy to get cash advance loans, but in the present time with the advancement in the field of technology and financial aspects, one can very easily get the cash advance. If one needs a loan, then one can easily find a company of his preference as there are plenty of them offering ready cash advance.
Now, one also has the option of getting cash advances online with less hustles and more efficiency. The process of getting cash advances has been simplified enough to get all the requirements completed without much trouble. The days of waiting for a long period of time to get the loans are no more there.
Tyson J Stevenson writes on a wide variety of "every day" subjects, most often with valuable news & reviews.
A related resource is http://compare-cash-advance.info.
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Article Source: ezinearticles.comYou can now get quick online cash when you apply online for a cash advance payday loan. What we mean here is that the cash is deposited into your checking account through an electronic check. QuickOnlineCash.com is a payday loan company that understands the need for quick processing of cash advance applications. The site has been designed in a way that even a newcomer to the payday loan system will be rushed through the application process online and will not be confused by fees, rates and terminology. The system is crystal clear, as well as very quick!
Just complete the online application or call 1-877-262-CASH, and you will be guided by seasoned cash advance professionals through the entire application process. For the first-time applicants, there may be a short delay in disbursing the loan amount to the bank account because of the online security and verification procedure that takes a few hours. But for the returning customers, the entire process takes just a few minutes and the cash is instantly transferred into the checking account.
If you want to have access to a swift cash advance system, just log into QuickOnlineCash.com and complete the application form. We suggest you do it now even if you don’t need the cash immediately. You will get a username and password for future use after your credentials are verified online. With the username and password, you will be able to get as much as $1,000 transferred into your account within minutes. This is because when you apply for the first time you pass through a security check that does not need to be repeated.
Of course you can always visit on of the 1200+ CheckIntoCash Payday Advance Centers or call 1-877-262-CASH anytime. Our friendly team of cash advance specialists will advise you on the process of completing your initial loan application online. Once this procedure is completed you will always be just a call away from emergency cash.
This article is originally published here: Quick Online Cash Check
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