Tips on Availing a Cash Advance Credit Card
Doug Smith

Defined Tag: Cash Advance Credit Card.

What is a cash advance credit card? It is a credit card that allows the cardholder to withdraw cash from their credit account as if he or she was making a purchase. This cash advance goes onto the cardholder's monthly statement as a sale, and is deducted from the available balance. Note, however, that this cash advance is not free. Credit card advances charge you interest rates the same as similar charge purchases. Sometimes the cash advance rate is different than the regular card rate. Check your cards to be sure.

There are many types and vendors of cash advance cards, including Visa, MasterCard, Discover, and maybe even your local bank has its own brand of cash card. Before applying for a credit card that will also advance cash to you, here are some details to consider.

Cardholders often need cash advances in emergencies. Money advances are usually needed while traveling, or even overseas! Determine whether the lending company will advance you cash when you are out of the state, or even out of the country. Sometimes certain vendors will not take charge cards, so a cash advance from the nearest ATM or bank will help you pay for car repair bills, for example.

Find out which credit card companies offer the highest cash advance percentages. Most cash advance cards have an upper limit on the amount of the advance. This limit may be 30% to 50% of the credit limit of the card. That means that cards with higher credit limits will allow you to withdraw higher amounts of cash during each advance you need.

Before choosing a cash advance card provider, find out how easy (or difficult) it is to obtain a cash advance. Some cards require you to visit the local branch of their bank, and fill out paperwork. Other cards allow you to withdraw cash from an automatic cash machine using the card and a PIN (personal identification number). The second method is obviously the easiest and fastest. Look for cash cards with that feature. Also, do not write your PIN number on your card, or a thief will have direct access to your credit card account!

Don't forget to check the interest rate. The rate charged on your cash advancements may be different than the card's usual rate, and possibly higher. The credit card company is going to make you pay extra for the convenience of being able to obtain cash advances. If all other card features are essentially equal, take the card with the lowers APR on cash advances.

Use your power of cash advancement wisely! Remember, you will be charged interest for the use of that money - it's not free. Consider all these tips before choosing your card provider, and you will end up with an easy and convenient cash advance credit card for your personal use.

Copyright 2008 by Doug Smith. All Rights Reserved Worldwide. Unauthorized Duplication Prohibited.