The True Costs of Cash Advances
Taking a cash advance on your credit card is a dangerous game to get into. There are so many other sources that money should be obtained from – cash advances should be used as a last resort.
Cash advances are often available at any ATM that has credit card services and require a pin number which can be requested from the credit card company. This pin number is often issued after the card has been activated in a different envelope to ensure the highest level of security. Once you have committed this credit card pin number to memory, it is important to destroy the document.
Can this pin number be changed? A quick visit to the bank can change the pin number to something you are more familiar with. This act should not be advised as it makes it easier to take advantage of the cash advance from the credit card, which can lead to increased credit card debt.
Why do people choose to use cash advances? Although we are in a society filled with technology, there are still places that do not take credit or debit cards. These types of places are often local small businesses and some tourist attractions while travelling.
Cash advances taken from the credit card should be avoided while travelling, not only will you accumulate the fees for the foreign exchange transaction as well as the exchange rate but you will also accumulate the cash advance fees that come with the credit card.
It is important to know how cash advances on your credit card work before taking advantage of the loan. Cash advances are charged at an interest rate which is higher than the standard interest rate of the credit card. This interest rate is commonly upwards of twenty three percent, depending on the type of credit card that you have. Not only is it higher than the interest which is regularly charged, the interest rate is charged on a daily basis.
What does this mean for your interest charges the month that you have decided to take a cash advance? From the moment that the cash advance is taken, you are being charged these high interest rates. Cash advances should be avoided to ensure that you are saving money on finance charges and credit card fees on a monthly basis. It can be a dangerous cycle to enter in to that can leave the card holder owing much more than they originally borrowed from the loan.
There are many alternatives to cash advances from credit cards. Consider withdrawing money from the bank to keep in the wallet in case of emergency, or in case of travelling to a place that does not have credit card services. This, combined with the fact that money can be withdrawn from a bank account should replace the high convenience fees that come with taking a cash advance.
Five Tips to Credit Card Safety
For those customers making use of a credit card than it is essential to practice techniques to maintain your safety while taking advantage of credit. How can you keep yourself safe and ensure that your purchases are protected throughout the shopping process? Use these tips to keep yourself safe while shopping with the credit card.
Keep Only the Cards that You Use
When you have more cards than you use with zero balances it can leave you susceptible to identity theft. There are many risks that can come from credit cards that have been lost or stolen. If you have multiple credit cards than chances are you won’t realize that one of the credit card has gone missing. Having only as many credit cards as you need allows you to decrease the risk of all of these occurrences.
Keep Record of Card Numbers: Front and Back
When you lose the credit cards it can be difficult to find the credit card number. Some statements show only portions of the credit card number. For this reason, it is essential to maintain photocopies of the front and back of the credit card – but be sure to keep these records in a secure area such as a safe. These records can be used when you are purchasing an item on the internet rather than having to find the credit card information.
Check Your Statements
Checking the credit card statements can ensure that you are given the opportunity to catch any suspicious activity or fraud from the very beginning. When you check the credit card statements you can ensure that all are purchases that you have authorized. Check the dates, amounts and location of the purchase to ensure that they are legitimate. This can help you to avoid identity theft when it comes to your credit card.
Do not Make use of the Cash Advance Pin
When you do not use the pin that is associated with the card and ensure that it is destroyed you can decrease the likelihood that the credit card will be used for cash advances which can save on interest rates while reducing your chances of being taken advantage of. If you do have pins for your credit card commits this number to memory and destroy the paper that has arrived with the pin number on it. Keep this information safe, as there are often no limits on withdrawals that can made from the credit card account.
Never Give Your Credit Card Number to Strangers
This seems like an obvious statement, but there are many consumers that give their credit card numbers to people over the phone or signing up for special offers. It is important to know just who you are dealing with when it comes to giving out your personal information.