There are many situations in life where you need money that you just don't have. For big purchases like buying a house or a car, loans are the way to go. For buying groceries and other smaller purchases, there are credit cards. But what do you do when you need cold, hard cash right now? Not all transactions will allow the use of a credit card, for one reason or another. In those cases, you might want to try a cash advance.
What is a cash advance?
If you use a credit card to withdraw money, then that is known as a cash advance. The process is fairly similar to withdrawing money from a debit card. You go to an ATM, you swipe your card, and you get some cash. So what's the catch?
There is a sizable interest rate associated with getting a cash advance, which can range anywhere from 3-5%. Like normal credit card purchases, the interest can rapidly build up to massive amounts if left unpaid.
Why would you need a cash advance?
Maybe you need to pay a friend back or you need cash for an informal transaction such as a Craigslist exchange. Other times, you might just not want the purchase to be recorded, such as if you are buying a gift for a family member or spouse that has access to your financial records.
You should NOT get a cash advance if you don't need to. If you can use a credit card, you should do that instead. You will save money and the transaction will be recorded, which you might need to look at for tax purposes or to simply review your finances.
So how exactly do you get a cash advance?
As was mentioned earlier, you can get a cash advance at an ATM. You can also get one at your bank if necessary. You'll want to check the interest rate before committing to anything, because you don't want to accumulate any unnecessary debt.
As with credit cards, make sure to pay back your debt as quickly as possible. The interest rates are quite manageable at first, but they will increase quite a bit as time goes on. Banks tend to make more money from people who fail to pay back their credit cards on time. The last thing you want is to be buried under a mountain of debt with no relief in sight. To find out more, speak with a business like USA Cash Services.
How many times have you put off making repairs around your home because you didn't have the money to make them immediately? Have those decisions caused even more repair bills because you waited to make the repairs? I have done this several times in the past, and, oftentimes, not making those repairs have cost me far more to complete because the damage spread. The whole reason I created my blog was to help others find the financing they need to make home repairs without worrying about choosing the wrong type of financing option. Hopefully, my hard-learned lessons will help you avoid the same struggles that I have undergone.