There are times when we all need access to cash, if you do not have any on hand you may decide to use your credit card for a cash advance. If you are applying for a instant approval credit cards for the specific purpose of making a cash advance you may be best to look at other options that we will discuss at the conclusion of this article.
One of the most punishing ways you can use your credit cards is to make frequent cash advances, this of course depends on your credit card provider but in general the interest charged for cash advances is much higher than the standard purchases rate on all but rewards cards and can be anything up to 22%.
Terms and conditions of almost every credit card on the market specify that cash advances will be devoid of interest free days – meaning that not only will you be paying he very highest interest rate associated with credit cards but you will be accruning interest on the cash daily from the day you make the withdrawl.
A trap many have fallen into is that many transactions where there is no physical withdrawl of cash are classed as cash withdrawls and therefore incur the same fees, charges and interest rates. These include but are not limited to:
- Additional cash at a electronic point of sale sale – the cash back element of the transaction will be classed as a cash advance by your provider.
- Transfers from your credit card account to any other account.
- Any travellers cheques you buy may be subject to a cash advance fee.
It is as always to read and understand the terms and conditions of your credit card – not only when the card application is made but whenever there are changes to terms and conditions. These are sent out by the banks to your postal address. While no one can be blamed for not looking forward to an evening spent reading through a financial institution’s changes to terms and conditions, it is really important to be familiar with them and remain abreast of changes and what they mean to you and the way you use your card.
This is particularly relevant when discussing cash advances as errors can be particularly costly, if you hold a debit card then there is normally no fee for cash withdrawals, and it will work out much cheaper than using the cash advance feature of your credit card, this is an often overlooked feautre of the debit card.
If you are considering instant approval credit cards for the sole purpose of using it for a cash advance you may be better off applying for a pay day loan. As with credit cards it is important when applying for a pay day loan to read and understand the terms and conditions of the advance and repayments before committing to the application.
