If you have any credit cards that have available balances on them, you might be able to apply for a cash advance. People often turn to their credit cards when they need some money right away, as this method offers a way to get instant cash. The downside of using a credit card for a cash advance is the high-interest rate you might have to pay after taking the cash. If you need some money and plan on taking a cash advance from a credit card, here are some tips to help you handle this event wisely.
Know Your Available Balance, Fees, and Interest Rate
Before you take a cash advance from a credit card, it would be helpful to find out three primary things:
Knowing these three things is vital when borrowing money from a credit card.
Use One of These Methods to Obtain the Cash
Once you have the information you need about the cash advance, you can find a way to borrow the money from it. You can use three main methods. The first is using an ATM. You cannot take a substantial amount of cash from an ATM, though, so find out if you can borrow enough with this method before using it.
The second option is visiting a bank and asking them to complete the transfer for you. The third option is using a check from the credit card account. You can use any method you wish, as they may all offer the same results.
Transfer the Balance to a Different Credit Card
After taking the cash advance, the goal is to aim to pay the lowest rates on the transaction. One of the best ways to handle this is by applying for a new credit card and transferring your balance to that card. New credit card accounts might offer low introductory interest rates. If you can transfer the balance of your card to a 0% interest card, you will still pay fees, but you will not have to pay interest on the money.
Carrying balances on credit cards might result in paying a lot of money in interest charges. You can reduce this amount by applying for a 0% credit card through a bank, credit union, or credit card company. Learn more about credit cards by contacting services like FCCU - First Community Credit Union.
Share8 July 2020
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