Basics of Credit Card Cash Advance |
Posted: November 22, 2019 |
Aside from the fact that credit cards greatly help every individual to make a purchase or transfer a balance to another credit card, what most people don’t know is that you can also get cash from it. Some people are able to do this with their credit card issuer or simply by using the feature of AUB Gold Mastercard. However, taking this route also means that you are taking one of the most expensive credit card transactions in your life. With this being said, here are some of the basic things that you need to know about credit card cash advance. What is a cash advance?A cash advance, in its simplest meaning, is the act of borrowing money from your credit card that is against your credit limit. Think of it as withdrawing money from an ATM with your debit card, except the cash that you have comes from your credit limit. With this in mind, this only means that the money that you acquired in that transaction should be paid back with interest. Cash advance can be done in several ways. However, the most common ones are by using your PIN at an ATM machine or by simply using a convenience check that is mailed by your credit card issuer. Moreover, keep in mind that your credit card cash advance is tightly tied to your credit card. This only means that you can have the option of paying it over a period of time — just as long as you make the necessary minimum payments. With this in mind, what are the other facts and questions that you should know about credit card cash advance? Here are some of them: How much can you withdraw when you have a cash advance?When your credit card cash advance is approved, you can get and withdraw cash up to your credit card limit. This means that it may be lower than the credit limit that you are given for your purchases. However, make sure that you check the recent copy of your credit card statement to check the limit of your cash advance and the amount of your available credit for a cash advance. Keep in mind that your available cash advance limit can be lower than your total limit if in case you already have a balance on your credit card. What is the basic cost of getting a cash advance?One thing that you should know about cash advances is that it has a higher cost compared to the regular transactions. You will definitely be charged with a cash advance fee and have a higher interest rates that you will need to pay for purchases. This cash advance fee can be charged as a percentage of your cash advance or a flat rate. In addition, cash advances don’t have a grace period. This only means that the interest rate/s begins to move as soon as the transaction is complete. You will always pay a finance charge on a cash advance, even if you chose to pay it in full. With this in mind, how can you then reduce the amount that you will pay? Just make sure that you pay it off as soon as possible, at least paying it before your billing statement comes. In summaryApplying and getting a cash advance on your credit card entails that you are willing to take on a very expensive short-term loan. Given that this is really not a good idea, however, there are instances that acquiring a credit card cash advance will benefit you — most especially when you need to settle something important as soon as possible. Nonetheless, make sure that you follow your credit card issuer’s instructions in order for your cash advance to be approved in no time.
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