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Beware of credit card cash advances
By Adam | February 27, 2007
Hello-
This article addresses an issue with credit card advances. Basically, avoid them as much as possible. The interest rates are very high and the fees are crazy too. The rates on a cash advance can easily be 23% or more. And the fees at 3% can get pretty expensive.
For example let’s say you borrow $3,000. The transaction fee is 3% which ends up being $90! And at 23% after one year if you don’t pay a thing, you’ll have racked up $690 in interest charges alone.
If you can avoid it do not do a cash advance. They are great for the banks because they get all that interest but are horrible for you.
-Adam
Pain lingers from credit card cash advance (Bankrate.com via Yahoo! Finance)
Taking a credit card cash advance subjects you to fees and higher rates, and you lose your grace period, warns the Debt Adviser.
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Topics: Credit Cards, Pay Off Bills, Personal Finance, Repair your credit |