How many people actually read the fine print for credit card terms and policies? Credit cards market their cash advances in similar ways as online cash advance for quick cash would approach the subject. They are both opportunities for someone to get money in a short period of time without having to drive to a “brick and mortar” location.
There are some distinct differences between the two which some people find confusing and direct them in the wrong direction for their particular financial situation.
Credit card cash advances:
This fast money can be obtained at an ATM or bank which will give the customer cash in hand to take care of a money matter. There are no questions asked nor are there credit checks. The credit check was already processed when the credit card application was approved. There is a personal identification number (PIN) which is used with credit card cash advances. Swipe the card, enter your PIN and the amount requested and you have fast easy cash. What happens next is where it is important to know what is stated within the fine print of the credit card agreement.
Cash advances carry a higher interest rate than purchases on credit cards. The marketing used to get you to obtain your credit card advertises the interest applied to purchases, cash advance rates are always much higher. The amount of money which is available to for a cash advance is limited by the credit card company. Once you take the money out, the finance charges start accruing. With purchases, there is a grace period that gives you time to pay it off at the time of the next statement. If not paid in full, purchase balances will accrue interest. Either way, interest on purchases or cash will continue to add on to the balance until your balance is paid off.
In general, a cash advance may be obtained online or at “brick and mortar” locations. Many people choose the online option from their home, office, tablet or smartphone. It really is that convenient. If you can get online, you can apply. Online banking has made the qualifying process quicker by having easy access to your account statement.
You pay a one-time service fee which is attached to your payoff. There is no up front money to be paid, and absolutely no interest if you pay it back on time and in full. The online cash advance is a short-term loan. If you do not make the full payment on your next pay cycle, you will then have to pay interest on balance owed. The interest is higher for this type of loan based on the high risk value of lending with no credit check. Many people use the high interest as an incentive to get the balance paid off.
Depending on your financial situation, you may find one of these choices a better option for you. If you do not have enough cash available to you on your credit card, attempting to go over your limit may get your request denied. If approved, be aware that additional over limit fees will also be applied to your balance. An online cash advance limit is regulated by the state you live in and the amount of money you take home each month in income.
I am a Blogger, Web Content Writer, Teacher, Mom. A woman of many hats. As an elementary teacher, I had always encouraged my students to write more. I find myself falling back on my own teaching techniques to share what I know about building and rebuilding personal finances.