Is a Credit Card Cash Advance a Good Idea?

When you’re strapped for cash and still have some available credit on one of your credit cards, a credit card cash advance is one way to temporarily make ends meet. Considering the cost of a cash advance, you might question whether it’s such a good idea?

A cash advance fee is one of the costs of a credit card cash advance. Cash advance fees can be a percentage of your advance – typically between 1% and 4% of the amount you take out. Or, the fee could be a flat rate. Some credit cards use a combination of the two to come up with your cash advance fee. For example, you might pay $15 or 4% of the cash advance, whichever is greater.

When you use an ATM to take out a cash advance on your credit card, you’ll also pay an ATM fee to the bank who owns the machine

The highest costs of all are the finance charges that are applied to cash advance balances. Different types of credit card balances typically have different interest rates. You might have one interest rate for purchases, another for balance transfers, and yet another for cash advances. Of all the interest rates, cash advance rates are the highest. This means you’ll have the highest finance charges on your cash advance.

Unlike purchases, you don’t get a grace period for cash advances, so interest starts accruing the day you take it out. You’ll pay interest on a cash advance even if you pay off the balance when your statement comes. Until you pay off the cash advance in full, your balance accrues monthly interest, making it harder to repay.

The way credit card companies apply payments to your credit card could mean your cash advance balance increases rather than decreases. When you have multiple types of balances on your credit card, your issuer probably applies your payment to the lowest interest rate balance first. Meanwhile, the highest interest rate balance (your cash advance) isn’t credited any payment at all until it’s the only balance you’re carrying.

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If you want to take out a cash advance on your credit card, make sure you understand the cost. Use a credit card that currently has a $0 balance to keep your cash advance from growing out of control.…

Why Keep Your Credit Cards Active

Credit card issuers are on a rampage – cutting credit limits, increasing interest rates, and closing inactive credit card accounts. Though you don’t have much control over rising interest rates and decreased credit limits, you can keep your credit cards open by using them every once in awhile.
Why are creditors closing inactive cards?

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Credit card companies don’t make any money on accounts that aren’t used. In fact, it costs them money. During this credit crisis, it’s risky for credit card companies to have unused credit cards on their books, because it’s hard to predict what you’re going to do with the credit card. You could decide to max out the card one day and never pay back the balance. In this case, it’s cheaper for the credit card company to just let you go.
Why should I care?

Another part of your credit score measures your level of debt by comparing your total balances to your total credit limits. The higher your credit card balances in relation to your credit limits, the lower your credit score will be. Having a credit card closed raises your ratio of balances to credit limits – your credit utilization – and lowers your credit score.
What can I do?

If your credit card has recently been closed, call your credit card issuer and request to have your account reopened. It helps if you’ve been a long-time, timely-paying customer.

Keep your credit card open by using it periodically and paying the balance off when the billing statement comes. By doing this, you’re letting your credit card know that you still appreciate and use the credit card.…

Using Payday Loans Appropriately

The impression that all payday cash loans are sinful and may divert your checking account is likely something that you have noted quite regularly. Genuinely, the cash advance industry tends to receive a bit of a beating; nonetheless, if you are savvy in how you manage a cash advance they can be a highly useful tool to have at times. The trick is you should not become humbled on them to be able to actually cover your normal daily bills every week. Mournfully, tons of shoppers choose this blunder and they suffer dearly in interest charges and penalties. Conducting investigation and knowing how to manage them responsibly could spare you a lot of money though.

The primary aspect you must forever comprehend is a cash loan is considered a temporary answer to a cash complication. Because of this, it typically has a loan lifespan of only two weeks. This is an extremely brief period; however, it is usually long enough to last in advance of someone’s next payday, which may enable them to repay the debt. The reason for the loan is not to give you income to live upon for the next year, rather it is serving as an advancement of your pay check by allowing you to have the money before you get your check and paying back upon obtaining your paycheck.

If you are only searching for a method to pay a couple of obligations that you have due in the future before you getting your paycheck then a payday advance is a wonderful device to use. It can assist you to abstain the NSF fees that credit unions assess, in addition to avert the late charges that occur from submitting an obligation after the due date. Furthermore, the fees for a online payday loans are generally a lot less than the charges you would be charged if your water were shut off and were assessed a reconnect fee. As you can observe, there are clearly situations when using a payday advance is a quite preferable choice rather than simply dropping a check, or praying for the best.

It is critical that you study your budget very carefully to make sure that you can really afford to repay the money that you are seeking. If you cannot pay the money back in full, you are typically able to roll the loan again, however this means that you at least pay the interest rates that are due on the advance. If you are unable to stand to even repay the interest charges, then you might not be capable to use a payday advance to manage your budget problems. If you may at the quite least bear to pay the interest rates every time the loan payable it makes a wonderful benefit that could permit you to be sure you are able to take care of all of your cash needs.

It is extremely crucial to continuously make certain that you concede the total costs of a payday cash advance thoroughly before you actually seeking one. If you are fully alert of the expenses then you can be assured you choose great budget decisions. Regardless, if you do not take the effort to carefully compare the costs, you may realize you are in a worse budget place than where you first began. A bit of time used for analysis can be quite worth the time.…