Cash advances
Sliding your
credit card into an ATM machine may seem like a convenient
way to get your hands on quick cash. But it also happens to be one of
the most expensive ways to put money in your pocket - borrowed money,
that is. For one, there is usually no
grace period on cash advances.
That means you're charged interest the second the ATM spits out the
cash. In addition, credit card companies often charge a higher
interest
rate on cash advances than for purchases. So on top of the fee you'll
pay to get a cash advance - typically around 2% of the total -
you'll pay higher interest from the day you get it. With all of this
in mind, you might want to reserve cash advances - loans - for
true emergencies.
Using a
bank debit card is a good alternative to cash advances
using a credit card. Not only can you use a debit card to withdraw cash
from your bank ATMs, but you can also use it like a credit card, with
purchases coming directly out of your checking account without interest
or fees. Some stores allow you to receive cash back on purchases with
a debit card for a minimal fee. Learn more about
the fine print in credit cards.