Your heading to a mall then you got two cards, your credit card and your debit card in where you got your salary, which one will you use? Some would say their debit card but probably most would say the credit card. Mostly, your debit card has lesser amount than of credit card so you pick it and swipe to get some cash. Then you have a cash in your hand by just one swipe, now you can go shopping. One of the perks of having a credit card is that you got the privilege of making a cash advance. credit card cash advance is easier than other loan transactions for you to be convinced easily to avail this. You got in mind that this cause you no hassle, forgetting the price you will be facing in the future.
Many would say that having credit card is such an advantage, but there are things you need to think about. People truly believe that owning it can make your shopping life convenient and easier. Yes, by this card you can buy things you needed and also what you wanted that isn’t on your necessity list.
Having a credit card is a luxury that can increase your debt. It’s like you’re swimming in a pool then all of a sudden someone or something pulls you down. Your living comfortably then one day someone knocks on your door giving you an envelope, inside is your billing statement and ready to drown you financially. You pay it on or the next month of your salary without noticing that you are about to face a problem. A big problem, a huge mistake.
Credit Card Cash Advance is a big NO,NO! Lots of people are discouraged to avail this kind of debt. There are some certain things you need to consider. Before making a decision, you must first weighs its pros and cons. Here are some of the bad phases of having a credit card cash advance:
1. Super Fees
Enclosed in this transaction are a lot of fees that you didn’t pay attention with. These are the ATM fees, cash advances fees and transaction fees. ATM fees are being charged. The amount that you will be paying depends on which bank you are using.
Cash advances fee are ranging from 2 percent to 5 percent still depends on the agreement you’ve made. Lastly, transaction fees caught you in surprise. The transaction you made is being paid off or the feeling of being convenient, charges you around 2% to 5% just like the cash advance fee. WOW! that’s a lot of fee excluding the interest. Look how big your payment will be.
2. High Interest
You may not realize that you are making a huge mistake until you reach the bottom. What else can you do if you already have a cash advance? I think you got no other option but to just pay it up for you to close your debt or repair your credit. The rate or your purchase is way far from your cash advance interest which ranges from 20% or even higher than that. Bear in mind that the longer you left your debt unpaid the more it is likely to increase. So, settle your account as soon as possible and repair your credit score with the help of a qualified Jacksonville credit repair company.
Do you know the difference between credit cards and debit cards? Credit cards are different from debit in a way that the debit card is directly linked to a checking account or money market and debited from your available balance in that same account. There are no interest charges or monthly bill because, there’s no money due after your transaction, unlike the credit card. In addition to that, credit cards give you an opportunity to create credit not like debit cards which do not.
Credits cards also have a credit line in which it has a maximum amount of available credit in order to make purchases. Furthermore, the credit line is also being determined by a lot of factors, which include the credit history of a person, income, as well as how much their existing available credit is. As purchases are being made, the balance that’s available is the amount that’s usable for spending at that given moment. When you use a credit card in a responsible manner, credit cards can be really valuable in terms of traveling, earning rewards, handling emergencies, as well as any other unplanned expenses, not to mention building credit.
Basically, a rewards credit card can be used exactly what its name implies. This means that the cardholder will be able to get some rewards for making purchases. Furthermore, rewards can also vary per card type and issuer. Some certain rewards gain from purchases can also come in forms or gas discounts on station purchases, cash back, food coupons, and even travel miles. Aside from that, for those cardholders who use their credit cards in a regular manner, earning some rewards is also one of the major benefits of using credit cards, since people can be able to redeem them for certain things that they’re going to buy already and the occasional treat. Next, a credit card can also be highly advantageous when traveling.
The reason is that some primary car rental companies as well as hotels need a hold on your debit or credit card in order to book a room or even reserve a vehicle, taxi, or car service. This certain procedure can surely take a few days or even weeks. So, hold amount during this time on either a debit or credit card isn’t available to use. Since you might not have a huge amount of money in your bank, chances are credit cards can be able to increase your purchasing power, which provides you with the needed funds at a certain period they’re needed. Some credit cards also offer fraud alerts in order for you to be safe if you happen to experience card theft during your travel.
Also, in cases of potentially fraudulent credit card activities, alerts might also be sent through text message, email, or phone calls and all the transactions will be forced to stop. Now that you know the benefits of using credit cards, you may want to consider using or accepting credit card for your business or personal use. On the other hand, if you happen to spend your credit in a wrong way, you may need to hire the service of a professional and experienced credit repair company.