Cash advance credit allows credit card holders to borrow actual cash money against their current credit card balance. The cash amount available to most is a small percentage of the overall credit limit but it comes in handy during those times when an unexpected expense comes up. People rarely carry cash anymore as most places accept debit and/or credit cards. There are still some services and vendors, however, who require cash payment.
In addition to the amount of the cash advance, interest and finance charges are also added to the credit card balance. The interest charges on a cash advance credit loan is often higher than it is for store purchases and there is often no interest-free period on the cash advance loan as there normally is for card holders who pay their balance in full every month. This means that interest starts accruing as soon as the transaction is made. Interest on some unsecured cards can be as high as 23%!
Cash advance credit payments are fairly easily accessible. They can be obtained over the counter at a bank or other financial institutions or at many electronic bank machines, as long as the amount requested does not exceed the actual cash advance limit. Whenever the amount requested exceeds the cash advance limit, the ATM is still able to dispense money. However, the exchange will be flagged electronically.
Cash advance credit loans can be expensive so be careful when you chose to use them. Use them only in true emergencies, such as a medical emergency. Try to avoid using them for everyday expenses. Know your cash advance limit so you do not exceed it. Try to pay back your cash advance as soon as possible. Try to use a credit card with a $0 balance and only take out the amount of cash you need. Do not give into the temptation to take out a little bit extra “just in case”.
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