Why Take The Burden Of Cash Advance When You Can Get A Personal Loan

Loans

Cash advance is a service provided by most of the credit card companies. Using this feature, you can take out cash from an ATM or make any type of payment that comes under cash payment.

Though a cash advance will make funds easily available, the interest rate that you pay for a cash advance will be much higher than purchasing a product using the same credit card. Moreover, the time count for interest starts the very moment you raise the money.

Typical for cash advances to charge a transaction fee, which varies a little from one credit card company to another but has an average value of about 5% of the total sum raised.

Clearing your debts becomes more difficult when the interest rates are higher

Credit cards can be thought of like traps of credit as it encourages you to spend more money. Once you make a certain minimum required payment using your credit card, you may keep paying money for years just in order to clear the interest without clearing much of your original debt. If your interest rate is greater than 20%, which most of the cash advances certainly have, then it becomes much more difficult for you to pay the remaining principal amount of the loan. Moreover, the credit card companies charge heavily if you are unable to pay your monthly interest.

Pages ( 1 of 3 ): 1 23Next Page»