Disadvantages of Cash Advance Credit Card Deals

There are many cash advance credit card deals on the market.You can easily go to any ATM and get cash from your credit card. It is a very attractive option, because sometimes you really need to use some cash instead of your plastic. You may think that withdrawing cash from your credit card should be the same as using your plastic to make purchases, but hold your horses! The rules of getting cash and making purchases are completely different and unfortunately, they are not in your favor! That's why it is very important to be informed about rules and regulations regarding withdrawing cash from your credit card! Think twice before you even consider getting one!

You may have low rate credit card, but the interest rate for cash advance will be much higher than the rate on your plastic! The usual interest rate on cash advances is about 25%, but of course it can vary from one credit card company to another. You should also expect to pay a flat fee for any cash advance every time you make them, regardless of the amount you take. It means that Visa, American Express or MasterCard will charge you some money just for the privilege, no matter if you take $20 or $200! But that's not all! You will also have to pay a fee to the company that owes the ATM that you use in order to take out your cash advance.

Do you think it is bad enough? Hold on! Most credit card companies don't allow a grace period before the sky-high interest rate kicks on your cash advances, the interest starts accruing the second you take your money from the ATM machine.

On top of that, sometimes credit card users don't even know that they use cash advances. Have you ever received "credit card checks" in the mail? I am sure that many of you wanted to use them in order to get your hands on big sum. But what you don't know is that your credit card company treats these checks as a cash advance and you will pay a heavy price for them!

I used this check just once and it turned out to be pretty expensive for me! I did that, because I didn't have the information! My credit card company preferred not to inform me about the fact that I actually used cash advance! That's why every time you get nice offers from your credit card companies, you should always find out about their costs!

As you can see, it is obvious that the benefits of cash advance are outweighed by what it will cost you. The worst thing is that people usually use cash advances when they are financially insecure and have big credit card debt. For some reason they don't understand that it will be very difficult for them to cope with huge interest rates and fees. Don't use cash advance if you don't want to get loaded with debt you will not be able to pay off!