Are you in need for some extra cash to spend?
Is there something you have to pay at this moment, and you cant use your card to do it?
If you are in this kind of situation, one of the solutions you might take in consideration is a cash advance.
Before you choose to take cash advance loan, be sure to understand well what cash advance is.
Let's try answering some of the most common questions.
What is it?
Simply said, it's a loan, cash money, you are taking from your credit card.
Most banks will provide you with this option. When you take money from your credit card, you will be charged a fee. Charging the fee is the bank's way to get its money which would otherwise be charged from the merchant. Your credit card has two limits: the first one is your credit limit, and second one is your cash advance limit. Usually your cash advance limit is lower than your credit limit.
How to get it?
It's quite easy, with your credit card you can take the money from almost any ATM machine. Be sure you are within your cash advance limit and there should be no problem.
How much is it going to cost?
This is probably the hardest question to answer. Through web you can find many calculators which can be very useful to calculate how much money you will have to pay overall.
Best thing to do is to visit your bank and get exact information, or you can consult your accountant.
Make a monthly budget and stick to it. If you have problem making your monthly or longer period budget, ask for help at your bank. Also there are many websites and public agencies that are offering free advices.
Is it the right thing for you?
In some cases of the emergency, when you are without cash, choosing this option can help you a lot. But you must stay disciplined and not use it too often. If you decide to use cash advance be aware of the fact that when you take money from ATM you will be charged a fee, and your overall debt will increase, as well as your monthly obligations. Like with any other loan program, it should be approached carefully.
Remember, if you are borrowing money, do it within the amount you would be able to handle in the future.
You should always pay your monthly obligations on time so you would avoid paying high interest rates.
High interest rates could take you into the deeper debt, but if you are disciplined and if you fulfill your obligations on time, there should be no problems. Sometimes the hardest thing to do is to change our habits of handling the money. And, sometimes that's just what we need to do. Make a budget plan and stick to it, it's not so hard!!!