Guild of Health

If you still confuse about cash advance, here are the smart tips from us. Read your credit card agreement; to understand the terms and fees. If you don’t understand something, call a customer service representative and ask. Use a cash advances for true emergencies; like unexpected medical expenses. Avoid taking out a cash advance; to pay for ordinary everyday items like groceries and gas. Know your cash advance limit; it could be less than your credit limit. Exceeding your cash advance limit; it will result in overage charges and higher interest rates. Take out only what you need; nothing more. Avoid the temptation to withdraw just a little more so you have some extra money. That little extra will only make it harder to repay the advance. Use a credit card with a $0 balance; if you have multiple types of balances on a credit card – purchases, cash advance, and balance transfer – payments are applied to the lowest interest rate balance first. Meanwhile, the higher interest rate balance; your cash advance and continues to increase with finance charges. This make the cash advance more expensive and more difficult to repay.