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Credit Card Cash advance Finance Charge

 Cash advance Finance Charge
Introduction
None of us are strangers to the convenience of having a credit card. There even different types of credit cards that you can use for different purposes. A lot of US citizens would usually have more than one credit card for their different needs. As convenient as it may be, you may have to pay for some charges.

When you get your bill, you might even be puzzled to the total that you have to pay for the month. One of the breakdowns involves cash advance finance charge, and this article will shed light on what it is all about.

What is cash advance finance charge?
Cash advance finance charge is the interest you have to pay for using your credit card as a debit card or to get money on hand. The charges happen because you’re not supposed to use your credit card like you would withdraw money from your bank account. Remember, your credit card is basically part of a company that lends money whenever you don’t have money at hand to pay for something. But unlike the typical payday loans that you can pay off on your next payday, you get your credit card statement at the end of every month. Although like payday loans, you get ridiculous interest rates for borrowing money from them, and it would usually double or triple until you get to pay off your balance from the company.

Blank checks
Some credit card companies would send you blank checks when they send your bill, and these can be convenient to use when you want to transfer your balance to another credit card or to have money on hand. This is usually a trap for those who own credit cards because of the interest rates the follow when you have to pay for the next month. The reason for this is that, unlike usual online or electronic transactions, using blank checks requires the companies to print these checks on paper and send it to you. Unlike payday cash loans, this is a completely different type of cash advance transaction, and if you’re not careful, you will sink into a deeper pit of debt.

What about the grace period?
The grace period is the usual time period for you to be able to pay your credit bills without having to deal with any interest rates. It’s basically that chance for you to not lose more money than you should when you use your credit card. The grace period before gaining interest doesn’t really apply when it comes to your cash advance finance charge. You used credit to get money and this costs you instantly. The interest rate you get for your usual credit card charges only take effect after the grace period set for you to pay your debts. But for the cash advance finance charge, it increases instantly after you had made the purchase or passed the balance. The tricky part to this is that you can’t pay the cash advance until you actually clear your regular balance with your credit card first. If you can’t pay at once to clear your balance, then you’re in trouble. This is why you should never bite off more than you can chew when it comes to doing a cash advance or using up your credit card too much.

How do I not get a cash advance finance charge?
As convenient as it is to get a cash advance, it causes you more grief than good, especially if you have a balance waiting to be paid off. If you could really do without a credit card, then you should opt out of having one. But as already mentioned, a lot of people actually find owning credit cards very useful with several companies making it more convenient for consumers to get what they want in their moment of need.

Bundle of Cash
One of the ways for you to not get a cash advance finance charge is to not use your credit card as a debit card to withdraw from the ATM. A credit card is a credit card and it will get you into more debt by cashing out money. Always read the fine print on the credit card terms in using the credit card because it will save you a lot of grief in the long run. There are also different interest rates when it comes to different credit card companies, so before you actually apply for a credit card, you should read on these companies and what they can offer you in the long run.

If you already have a credit card and already having a cash advance finance charge, then you should make sure that you can commit in clearing your credit balance for the month and quickly be able to pay the charge. Make it a point to not always use your credit card for small transactions that you can pay for with your regular salary. Credit cards should always be only used for extreme emergencies, because otherwise you will be caught up in a vicious cycle of debt.

Start trying to save up your salary to cover your usual bills. Stretch out your finances to cover your expenses in the span of one month and compute things that you can do without. In this way you can always be sure to cover your bills without the need of using your credit card too much. In this way, you can get more money in the bank and at the same time be able to get out of the debt cycle.

Check on your credit card company’s annual percentage rate regarding their interests because they can fluctuate, depending on the company. Usually your credit card bill would come in with little leaflets to announce these changes in the company. Make it a habit to always read everything that you get in the mail, because it might just help you from overshooting your expenses when you really need to balance out your money for the month.

Conclusion

Cash advance finance charge doesn’t always have to be a big problem, so long as you just keep yourself in check with what you purchase online or what you use your credit card for. There are a lot of ways for you to avoid the pitfalls of getting into a lot of debt and you must take extra care when you need to spend on something big. Read the fine print, keep yourself updated with the interest rates of your credit card’s company and you would probably get to avoid majority of the problems most people get from owning a credit card.

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