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Old 08-13-2010, 08:05 PM
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DavidBibby DavidBibby is offline
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Join Date: Jun 2010
Location: Palm Bay, FL
Posts: 415
Default Don't take that cash advance!

If you've been thinking about getting a cash advance on your credit card.. might want to stop for a moment and consider what the costs are.

Let's say I want a $500 cash advance. How much is this going to cost me in all?

1) First, the upfront fee. Some creditors charge between 2% and 4% just for the privilege of loaning you money.

So that's a potential $20.00 right there down the toilet.

2) Second, creditors don't give you a 30 grace period on cash advances.. they start charging you interest from DAY 1. So if you're the type of person who pays the balance in full to avoid finances charges.... you're TOO LATE if you used a cash advance.

3) Third, the interest rates are HIGHER on cash advances (25% - 30%) then they are on regular purchases.. so not only do they stick you from DAY 1, but they REALLY stick you from DAY 1.

4) Fourth, most cash advances are done at ATM's so you get a fee from the ATM owner too.. So if the other three weren't bad enough... the bank providing the ATM has to get a piece too.

So.. the bottom line is.. avoid cash advances.

What's your cash advance horror story??
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