Friday, November 24, 2006

Avoid using cash advances in credit cards


Avoid using cash advances in credit cards

I love using credit cards to my advantage. Easy payments, rebates, rewards programs are just some of the great features of a credit card. If there's one thing I would like to avoid using is the cash advance feature.

Except in extreme emergency cases when you absolutely need the cash, using cash advance is a BIG no-no. Aside from the outright 500 pesos cash advance charged by most credit card companies, you are subject to an additional 5% charge of the amount withdrawn. You can withdraw a maximum of 30% to 50% of your credit limit.

On the positive side, it's convenient when you need the cash since it can be withdrawn on any ATM nationwide. You just have to use the PIN that came with the card. You must also watch out which ATM machine you withdraw with because some will charge you $1 just for a balance inquiry!

Picture: www.i-atm.com.tw

Related Links:

Credit Card Fraud
Credit Cards
Credit cards are better than cash
Earn using your credit cards

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  • 1 comment:

    Anonymous said...

    I completely agree that a cash advance is not the best feature to use since there are many risks involved. For example you can't learn straight away about the fees. Interest rates are high and which is more there are security risks concerning personal information.
    But still can be used in urgent situations. I personally once used this feature and never regret.