Credit Card Cash Advance Fee
If you are a regular user of a credit card, you must have been acquainted with the cash advance. You cannot completely avoid this. The implication of this in a sense is much similar to collecting money using your debit card. The only difference is that rather than use your ATM card, you are using a credit card. Every time you request for a cash advance, it is debited on your account as a debt which you have to repay later. This is where it is similar to a credit card.
Fees are usually charged for cash advance
At times it can be easy for people to forget that the credit card company’s gesture of letting you enjoy money in advance is nit to usurp advantage but for their own benefits. Do you know that the see making a lot of profit from your credit card cash advance? Firstly, you are required to pay interest from the very moment you order for a bit of cash advice. Besides that, they also charge you some money every opportunity you have to make withdrawals using your cash advance card relative to your credit limit.
How much are you likely to pay?
There are usually two methods by which the cash advance utilizes to ascertain what to charge their clients. The first one is by using a genres land established fee. Secondly, they could charge you based on the proportion of the cash advance which is higher. Let me kind of give you a break down of how you can analyze it by yourself. Assuming that the cash. advance fee is 20$ or 10%, and you withdraw say $200. By my simple calculation, the cash advance charge will be about $20. Remember, that 10% of $200 is $20.
In the same way, the charge for $1000 is $100 and so on. I am sure you can simply work out yours by now.
How charges are determined | Credit Card Cash Advance Fee
When you are a user of certain specific cards, you are liable to pay a cash advance fee for the same transaction. This type of transaction icons are usually looked at as cash advance despite the fact that you haven’t ordered for a cash advance with the use of ATM machine.
Another way that will warrant a charge is when you take an overdraft using your ATM card, or in the event test you purchase a ticket to play the lottery when you load in money in order to withdraw using a gift card, or on your attempt to transfer cash to someone else.
It is not advice able yo go ahead with a credit card without first getting an insight about the parameter that will be used to evaluate and decide what you are supposed to pay as charges. You can always ascertain thus parameters by looking up the contract located behind the billing statement for further relevant details. Any step you take in ignorance is dangerous, so don’t be charged in ignorance or taken unawares, be sure to get every relevant detail. And just in case you need some form of further clarification, please feel free to call the company responsible for giving the credit card to customers.
It is possible to exonerate from the fees?
As long as you benefit from cash advance, you will have to pay a fee for it. However, there is a possibility to reduce the fees. And that’s not so difficult. Simply reducing your rate of withdrawal. Another thing you can do is to start your repayment plan with immediate effect. Remember, your charged starts counting from the very moment you choose to use the cash advance.
I always advise that you do due diligence when making a credit card choice.