How to Get a Cash Advance From Your Credit Card

How to Get a Cash Advance From Your Credit Card

When it comes to obtaining a cash advance from one’s credit card company, the process can appear pretty simple: Find an ATM machine, insert the credit card, enter the PIN and receive the cash. However, if you’re dealing with a bad credit score, then the latter steps are often unconceivable and can generate numerous difficulties along the way. Instead of attempting to obtain such a loan from your credit card company through an ATM, receive your cash advance online for bad credit!

If you have a habit of withdrawing cash from your credit card on a regular basis, then you probably already know just what kind of financial difficulties you could be getting yourself into. Beware however; even without such a habit, doing so just once can still still get you landed in a sticky financial situation.

The truth of the matter is, credit card companies take advantage of individuals in desperate situations. In fact, a cash advance from your credit card is probably one of the worst transactions one can proceed to – leading to poor credit rating as well as a negative credit score. Before you start taking the steps toward accessing a credit card loan, you should probably keep reading in order to have all the necessary information.  

The Dark Side of a Credit Card Cash Advance

Credit Score

Keep in mind that every single financial decision one makes has a direct impact not only on credit score, but equally on the FICO score. The latter scores can be viewed as the “heart of your financial life”. In order to keep a positive credit rating, it is important to pay off and credit card payments made within a 30 day period. However, taking a large cash advance, or even several small ones, from your credit card can make paying back the totality rather difficult. Credit card debt over an extended period of time has a direct negative impact on credit rating and scores – making obtaining loans of all kinds next to impossible, let alone applying for and being approved for a future mortgage.

Once your credit card rating gets spotted with debt, late payments and other negative elements, you will quickly become an undesirable candidate for a loan in the eyes of most banks. You credit report will demonstrate the loaning money to you is a highly risky situation and many lenders will refuse to work with you entirely. More so, if ever you were to be approved for a loan, then don’t be surprised at the outrageously high interest rate!

Fees

There is a world of difference between using your debit card at an ATM machine and using your credit card. When using a credit card, you will automatically be charged a cash advance fee for borrowing the money from your said company, which can easily range between 10$ and 20$, as well as an extra ATM fee. Think about it: The request for 20$ off your credit card can easily end up costing a good 30$ or even 40$!

Interest Rates

If the unexpected and incredibly high fees haven’t yet discouraged you from withdrawing money from your credit card, than the interest rates might do a better job. Just as with an credit card transaction, a given interest rate is associated to such. However, unlike traditional purchase transactions, a cash advance has absolutely no grace period. In other words, one begins to pay interest on the said credit card loan immediately.

Furthermore, the interest rate in an of itself is much higher than one might expect. Depending on your credit rating as well as your credit company, interest rates for credit card cash advances can range anywhere from 1% to 7% higher than under regular circumstances.