Are there extra fees associated with cash advances?
Tuesday, June 23rd, 2009
Cash advances and additional fees
Cash advances on most credit cards – obtaining cash from the available funds on your credit line – may result in extra fees and a higher interest rate.
Before you take a cash advance, first look at the fees associated with cash advances. You may be charged a cash advance fee by both the credit card company and the bank that issues the funds to you. If you use an ATM, you may have to deal with ATM fees as well.
Often, a credit card company may begin charging interest on cash advances immediately. This means that you do not have the same grace period as you would with a regular purchase made with the card. And the interest rate may be higher with cash advances than the interest rate you are used to paying on purchases.
Be sure to understand all aspects of obtaining a cash advance from your credit card. Check the terms and conditions of the card so that you are familiar with the fees and interest rate involved with such transactions.
Oftentimes, it is best to try not to use credit card advances as a default means to get cash in your hands. Instead, use your debit card or write a check at the bank.
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