Credit Card Cash Advance Information

April 10, 2012 by  Filed under: Credit 

There are many instances where a person may need cash immediately and cannot wait until his or her next paycheck. Examples can include needing to pay for unexpected repairs, needing to help a friend or family member with expenses, needing to pay a bill, and many more. In many cases, using a charge card can be convenient as credit cards are accepted nearly anywhere for a variety of payments. There are however, instances where a charge card cannot be used to make a payment but with cash advance options offered by credit companies, a person can get the cash they need right away.

Not all credit card companies offer the option for cash advances. For those that do, there are specific rules that may apply that are different than those that regulate typical charge card usage for purchases. One of the varying rules that many companies enforce is there is a different interest rate that is applied to the amount of cash advanced. This rate can be significantly higher than the rate for purchases made with the credit card. Because of this, it is recommended that cash advances be limited to rare cases that they may be needed.

Cash advances can be available in a couple of ways. Some credit card companies issue a limited number of checks that can be used to make payments or purchases. These checks function much in the same manner as checks used for bank accounts in that they are made out to a specific payee for the amount specified on the check. The payee can then cash the check as he or she normally would with any other check. The maximum amount available for use with these checks is limited and is typically noted clearly on the checks.

The other method is through the use of the credit card at an ATM machine. This method requires a PIN number that is issued by the charge card company and works similarly to banking ATM cards. Cardholders may be limited to specific ATM machines that feature the logo of a specific card issuer which can typically be found on the back of the card and clearly posted on the ATM. Failure to use these specific ATM machines could result in the cash advance being denied or the card not being accepted at all. Cardholders can borrow up to the maximum amount allowed by the card issuer.

Charge cards offer the conveniences of making payments and purchases anywhere cards are accepted. For the rare instances that using a charge card to make a payment or purchase is not possible, using the cash advance option offered by credit card companies is a convenient alternative. Using the cash advance option does come with additional responsibilities and should be carefully considered before taking a cash advance. Additionally, using cash advances and credit cards as a way to supplement income is highly discouraged as they can cause a person to go deeper into debt.

Visit http://www.creditcardrates.com to find the best credit cards for you and some of the lowest credit card rates around.

Article Source:
http://EzineArticles.com/?expert=Greg_M_Beaumont

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