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ARE YOUR ADVANCE FEES GETTING YOU DOWN?
Having a credit card can definitely help you when you might need it the most, but those darn advance fees can really hurt when your statement arrives. By getting your credit card cash advances can assist you with getting quick and immediate cash for your emergency financial need, but at a price. If at all possible you should try to avoid getting cash advances on your credit card as those fees can end up costing you more than you bargain for. Just remember that receiving your credit card cash advance there are no grace period with this. So, remember to read your credit card statement and become fully aware of all of those hidden fees that might be charged to your credit card statement.
Those fees that are charged for receiving cash advances on your credit card can be very costly to you. These fees are acquired by the creditors calculating your fees using two methods. Some credit card companies base their fees on a percentage basis, which can add up to 1% - 4% and some other credit card companies may to charge you a flat fee. A flat fee charge would not fluctuate solely based on the advanced that you received with your credit card as this fee would remain the same.
As some credit card companies might charge you with both of these methods. For example they might charge you a certain percentage based on the money that you received from your credit card and a flat fee for the opportunity to do this. So, be sure to read your credit card statement and if you have ANY questions with regarding to any fees that you see on your credit card statement call their customer service immediately and inquire about it. It never hurts to ask and you never know it just might be an error on their part.
If you are one of the lucky ones that your credit card company does not charge this fee you would be in great shape just remember to make your payments on time.
If you have decided that you need to get an advance from your credit card make sure you don’t use an ATM machine. As most ATMs machines will charge you a fee for this service, remember that the fee is being charged by the financial institution that you are trying to retrieve money from.
One of the biggest pitfalls for us when we get an advance on our credit card would be the finance and interest fees. The interest rate will often be much higher than the normal purchase rate. If you get a cash advance on your credit card the cash advance rate is usually between 20% to 25%. So, remember the average credit card purchase rate is between 15% to 17%. So as you can see this could drastically increase your monthly expenses, so use this credit card cash advance wisely as it may cost your more in the end.
There may also be other finance charges that involve the grace periods and the payment method that you may use to make your payment for your credit card. When you have received your credit card cash advance at this time is when your interest starts accruing and that is why there would be no grace period. So you believe that if you pay your credit card bill in full when your statement arrives that you will be ahead of the game you will be wrong. So, when you do receive your credit card statement make sure you review it carefully and be aware of all of the fees and charges that you are paying for.
As you might not beware of it, but thus the manner that your payments are applied to your account can make a difference. When you make your payment most credit cards issuers make their credit card payment towards their purchases, as a rule most creditors automatically apply your payment to those credit card purchases that you have made. So, if your credit card has a balance this might be the reason for any extra finance and/or interest fees that you might see on your credit card statement. When making your payment for your credit card cash advance call your creditor and make the payment over the phone and specifically ask for your credit card payment to go directly to your cash advance.
Have you ever received those credit card checks in the mail with your credit card statements? Have you ever been tempted to use them? Well after this you might want to shred them as the credit card company sees them as credit card cash advances and are subject to the same terms as your credit card cash advance would be. We as consumer find those checks to be another easy access to our credit card cash advance and easy spending money. Just remember when something seems to free or easy to utilize it usually comes with some hidden agenda or large fees.
If you have become dependent on your credit card cash advances there might be some debt problem. If you regularly rely on your credit card cash advances to be able to make ends meet you might want to find another alternative to pay your bills off and these fees can quickly accumulate over time and before you know it your fees can and will be more than what you actually borrowed against your credit card.
Even though the credit card cash advance is very easy to use, don’t get into the habit as using this as a quick fix as there maybe another issue at hand. There are many additional financial resources out there that can be beneficial to you and may save you time and money from those credit card fees. A great way to stop this cycle would be to consider having a monthly budget.
Get out of credit card payments by applying for cash advance |
