When we urgently need money, we consider many ways. You can take out a loan, you can borrow from friends, you can take on additional work, such as a delivery man. But each of these methods has its own drawbacks. Friends may not have the amount you need. It takes time to process a loan. And in order to earn the necessary money, sometimes it takes even more time.
In case of an emergency, taking a cash advance from a credit card is the easiest way. All you need is a card and an ATM nearby. You are not limited in time. However, the amount is limited by the limit on your card. Nevertheless, this is a really quick and easy way to get some extra money. But in order not to get into debt for a long time, there are a few steps that you should take before getting a cash advance from a credit card.
Check Your Credit Card Terms And Conditions
Knowledge is power, especially when it comes to credit cards and finance in general. So the first thing you should do before withdrawing a cash advance from a credit card is to check the terms and conditions. This will let you know if cash withdrawals are allowed and what are the commissions and interest rates. You can find this information on your credit card issuer’s website. In addition, almost all credit card issuers have a support service that you can call and clarify all the details.
Know Your Cash Advance Limit
You can be sure that you know the limit on your card. And, of course, you may be right. But the fact is that quite often, another limit can be set for cash withdrawals. And almost always, this limit is lower than your total credit limit. So if you need a specific amount, make sure your credit card allows you to borrow it.
Find an ATM That Accepts Your Credit Card
You can get cash at those ATMs that accept your credit card. Usually, there are not many problems with this. However, not all ATMs accept cash by credit card. So be sure to check before you try to withdraw cash. You can use Google or check with your credit card issuer for the location of suitable ATMs in your area.
Keep Track of Fees and Interest Rates
Cash advances usually come with high fees and interest rates. So it’s critical for you, and especially your budget, to keep track of how much you’re being charged. Fees and interest will be added to your credit card balance. Keep in mind that interest will continue to accrue until you pay it off.
Of course, this part refers to what you do after you receive a cash advance. However, this is something that should not be overlooked. Cash advances should be paid off as quickly as you can, and your budget allows. It is better to postpone any non-urgent purchase but deposit more on the card. Your mandatory payout is the minimum payment. But it is better to try to repay the amount more than this payment. Thus, you will pay less interest and lose less money.