Home

Feature Article:

RPG:table and computer
RPG: table and computer It’s not a secret that table RPG games are not so popular as they used to be. However a certain number of amateurs are still fond of them. What is so particular about a pasteboard box or a book with rules? It seems that all...
...Read More


Convenience Can Be Costly - Understanding Cash Advances

Additional Reading

You’ve just opened your credit card bill and attached to your statement you find a “convenience check” included. It may already be filled out with a dollar amount such as $300, $500, or even $1,000. Your mind fills with ideas of what you could buy with this “instant” money. A new summer wardrobe, a nice dinner and tickets to a concert, a weekend getaway.

But before you go off on a shopping spree, you should be aware that your “convenience check” is nothing more than a cash advance on your credit card. Cash advances on credit cards carry many extra fees, often overlooked or misunderstood by consumers.

Here’s a quick look at the types of fees most card issuers charge for a cash advance:

1) Upfront fee of 2-4% of the amount advanced. On a $1,000 cash advance your fee will range from $20-$40 in addition to the interest charges.

2) Higher interest rate than on purchases. Many credit card companies charge 18% or more on cash advances. In addition, most companies apply only a small percentage of your monthly minimum payment toward the cash advance.

Some require that you pay down the balance on your purchases first before applying payments to the higher-interest advance. In other words, you’ll be paying fees and interest on your cash advance for a long time, especially if you only pay the minimum payment.

3) Cash advances normally carry no grace period. This means interest charges accrue as soon as you withdraw money or cash the convenience check.

By law your credit card company must disclose any fees associated with a cash advance. The easiest way to find out what fees are charged is to carefully read your credit card statement or to call your credit issuer’s toll-free customer service number and ask questions.

Credit card companies charge these fees for two main reasons. One, to cover the costs to process this transaction which are often higher than a regular credit card purchase. And secondly because of the percentage of defaults among credit advance users. These costs are then passed along to you the consumer in the fees and interest rates associated with a cash advance.

The next time you are tempted to cash that convenience check or withdraw money from an ATM using your credit card, be sure you understand the fees and long term effects of using a credit card cash advance.

About the Author

© 2005, http://www.yourfreecreditreportnow.com
Author: James H. Dimmitt
James is editor of “To Your Credit” a FREE weekly newsletter focusing on managing your personal finances and credit. Subscribe and get a FREE copy of your credit report when you visit: http://www.yourfreecreditreportnow.com

 

More Reading:


High Profit Real Estate Investing make A Good Deal Every Time

Choosing A Countertop That Is Right For You

Making the Most from Free Online Survey Taking

So Is It Possible To Earn Free Money Online Fast

How To Mine Gold From FREE Stuff

 
Free Stuff Email

Five Free Tools To Help Make Your Business Grow

How To Get Paid Instantly Via Stormpay

Free Stuff

Why You Should Use Fruits For Constipation


High Profit Real Estate Investing--make A Good Deal Every Time!
Knowing what a Good Deal is – Is the Key to Success in Real Estate. Knowing and being able to negotiate good real estate deals every time is the key to real estate investing success. What to look for, and how to calculate your profit, cashflow and...
...Read More

Choosing A Countertop That Is Right For You
Choosing a kitchen counter material can be an overwhelming task in the midst of a huge kitchen makeover. Before you select a material, try to decide what look you are going for. Scour magazines and take a trip to your local home improvement center...
...Read More

Making the Most from Free Online Survey Taking
Taking online surveys has proven to be an exciting, legitimate way of making money online. Market research companies have questions they want answered, they pay you to answer them, and consequently are able to make better marketing decisions...
...Read More

So, Is It Possible To Earn Free Money Online Fast?
The answer is – yes! You can earn free money online fast, even without any web site or affiliate marketing. You'll only need to invest some of YOUR time and a small amount of money. It doesn't matter if you are a stay-at-home Mom or Dad; a college...
...Read More

How To Mine Gold From FREE Stuff!
This article will show you: 1. How to avoid wasting your time with FREE stuff! 2. How to identify real bargains! 3. Some top FREE programs and services Entering "Free Stuff" in Alta Vista will yield a colossal 521,442 results. Over half a million...
...Read More