Your day was very boring so you decided to do some window shopping. While at the mall, you happened to pass by a gadget store and found the newest and current trend in cellphones and had yourself drooling to buy it. Your birthday is quite near anyway so might as well buy a birthday gift for yourself in advance, right? This would be a lovely reward for yourself once in a while after all the busy days at the office and at home. You got your bag and you checked on your wallet then realized you got no cash left but found your credit card instead. So, are you going to use your credit card and buy that to-die-for phone you always wanted? Your dilemma begins.
So, let me help you decide on that. Before you buy items using your credit card, please read the basic tips we provided below and know why a credit card cash advance is not always a good option:
- Soaring Interest Rates
Most credit card cash advances have higher interest rates. So instead of just buying the normal and actual price of the item you have purchased, you will also be in debt of the interest rates which you will be paying also by the end of the month.
- Greater Charge on Fees
Other than the interest rates, you are also obliged to pay the charged fees for the transactions. Prices and charges may vary depending on the bank. You can check this by visiting your local bank and inquire on their charges.
- No Grace Period
Most credit cards used to have a 30-day grace period while others have shortened it to 20-25 days. However, there are some banks who do not have any grace period at all which can be really frustrating. Once you purchase an item, the interest charges for the purchases you have bought has already started and the fees began ticking.
So, are you still going to buy that phone using your credit card? Hope not! These items listed above are just a few but these are important tips to help you decide whether to use a credit card cash advance or not. I am sure there are other ways and means you can use to buy those gadgets you have always wanted and using credit cards are surely the last on the list. This means that you cannot or you don’t even have the chance to pay it full for you to stop the fluctuating growth of your financial charges. Mostly when you make purchase using your credit card you are allowed of the grace period. you are able to pay before the interest accrue that isn’t applicable on cash advances.
The moment you have a cash advance, the interest starts to rise as well. Cash advances are not like plants that makes you happy when it grows but it can cause you stress and much bigger problem. It’s like when you’re sick, then you are not given the sudden treatment and makes you ill. So, you must cure it at early times to avoid it from getting worst. Pay your debts early and have your credit repaired by a reputable company that can fix my credit.