The Convenience of the ATM Cash Advance
This may be convenient when you really need the money on hand, but there are downsides to this as much as there are ups. Most credit card companies will charge you a high amount of interest for that advance cash payment along with your usual monthly credit bill balance.
Despite the fact that most transactions these days can be done from bank to bank, there are still some transactions that require money upfront. Withdrawing an ATM cash advance is one of the most convenient options for financial relief. You can withdraw any time for any purpose and get that money to pay for whatever it is that you need.
You also have to be careful with your ATM cash advance withdrawals. Aside from the interest rates, other people may know your pin and other information, and you could lose your credit card in the process. As much as it is convenient, extra care should always be the main practice with a credit card cash advance, or any form of credit card transactions.
Acquiring a PIN
To make sure that you are secured in using your account, you can ask your bank or your credit card company to activate a four-digit PIN number for you. This can usually be automated and usable at the same time that you request for it.
The purpose for the PIN is additional security for whenever you use your credit card for an ATM cash advance. You can always have your PIN number changed, depending if you lost it or you suspect that someone else is using your credit card for something else. Remember, this is for your own protection, so be careful that no one else knows your account number unless it is someone you really trust. Granted that an ATM cash advance allows you to access funds when money is short, it is your emergency ticket, so make sure that your account is safe.
Maximum allowable cash advance
Unlike getting a cash advance from your regular payday lender, there is no cash advance limit to how much you can withdraw from the ATM. However, you can have a very outstanding bill by the end of the month. This is where the down side happens.
If you have a bad credit record to begin with, you will not be able to pay off the ATM cash advance and its interest until you have cleared off your credit bill. Another unfortunate part of this is the fact that the longer you are not able to pay the cash advance bill, the larger the interest will get. Despite the convenience of a cash advance using your credit card, if you are not careful with your finances, you could end up in a bad financial status with only one withdrawal.
What you can do
You should read the fine print of the stuff you get in the mail from your credit card. Most people shrug it off as advertisement, but more often than not, it also includes updates on the increase or decrease of interest rates.
In this world driven by commercialism and instant everything, it is not easy to keep yourself from falling into pitfalls or buying sprees because there may be discounts when you have your credit card. It can be difficult to realize if what you see is something you just want, or something that you really need. It is something that you must always be able to differentiate if you want to save up money, and you should only use your credit card when you need it.
An ATM cash advance may not always be the answer, but there will be times that you will need it. All that is left for you to do is to be really careful on how you spend it.
If you are already the type to spend money conveniently using your credit card, try listing down your expenses, and the things that you usually spend on. Try listing the instances when you would go for an ATM cash advance instead of other means of payment. Look back and think if those payments have been used for something you really needed or just wanted. Being critical of your own spending can help save you from a lot of financial grief later on.
As much as an ATM cash advance is a convenient way to buy things when you need it, there are disadvantages to it. You will most likely see this on your credit card bill at the end of the month. Unlike regular payday loans, which you can pay off at the end of the 14 day or 30 day period, an ATM cash advance is not payable until you get your current credit bill paid off. What makes it worse is the fact that the interest will increase the longer that you cannot pay for it.
If you cannot buy an item or service with your regular finances, it is best that you learn all you can about an ATM cash advance and decide if it is best for you.