Sometimes it is necessary to attain some fast cash due to an emergency or lack of funds. Taking a cash advance can be a simple fix for this situation. However, it is important that you are aware of how to handle it safely. Cash advances are tricky in that they can end up being costly. Here are some tips for using cash advances to your benefit while minimizing or completely avoiding extra costs.
Cash advances are easily accessible from a number of different locations. You can use your card to charge a cash advance at any bank of your choosing. You can even get one at a foreign bank if you are on a trip abroad. There is also the option of using your card and personal identification number to receive a cash advance from an ATM machine anywhere in the United States or internationally. Customers can also get a cash advance through a check to their credit card provider.
Understand Your Credit Cards
Make sure that you are familiar with your credit card agreement. Read through it very carefully to find out what fees may apply to your situation. This way you will be prepared to sidestep these hidden fees. Also, check the APR on the card’s statement to be aware of all interest charges. If you have questions, feel free to contact a representative or professional to assist you in finding the best option. Being knowledgeable about your finances is key!
Know Your Limits
Realizing your cash advance limit is essential in cutting down the costs. It is not the same as your credit card limit. Usually, the separate cash advance limit is shown right on the monthly statement but at times, research will need to be conducted so that you can ensure you are not taking more money than you are allowed. Exceeding this limit will result in tremendously high fees that you want to avoid at all costs.
Only take out as much money as you need. It is not wise to use a cash advance to fill your pockets with some extra spending money. Paying the money back will only be harder if you take more money than you truly need. If in the future you need more, it is a better and safer choice to take another cash advance transaction.
Juggle Your Credit Cards
When you are taking out a cash advance, remember to not use the card that is your favorite. This credit card should not be the one you use for all of your other purchases and expenses. Different balances on a card lead to different rates of payment. In other words, you may be stuck paying off the cash advance sum while all your purchases are collecting interest. Using a card that has a very low, or preferably a zero, balance is the best option.
Be a Tightwad
Once you have the advance, make sure you keep your spending to a minimum until it is completely repaid. You should save your money to put towards your existing balance, instead of risking the accumulation of debt. The faster you can pay back the money you owe, the better.
Cash advances are very convenient and can create many positive benefits. However, if you do not use them wisely, they can end up costing you more than can handle financially. Before you take any cash advances and make this financial commitment, make sure you know what you are getting into. Follow the tips provided above, and if possible, contact a professional to aid in this process.