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Cash Advances – What Can It Cost You?

Raul Stevens March 8, 2018 Finance

Cash advances are a type of loan provided to you by your credit card company. The company allows you to take out a loan. How much money can a person borrow depends on the credit card company. Usually, there is a set limit. You can borrow the money from an ATM machine, the bank, or by filing a convenience checks issued by the credit card company.

Cash Advances vs. Credit Card Loan

When you use your credit card, you are borrowing money from the bank, but not in the form of cash. Since using a credit card to pay for something may not always be applicable such as paying for car repair or hiring a taxi, you may need cold hard cash. If you do not have sufficient funds in your bank account, you will need to use your credit card to receive a cash advance.

The Downside to Using Cash Advances

Although you can use cash advances to make quick purchases, but due to the limit, you will not get the entire amount you need to cover the costs of something. Cash advances do sound like a convenient option, but when you look at the costs associated it, you will ask yourself if it is really worth all that trouble.

Here is an example outlining the process of borrowing money against your credit card:

  • To make a cash-only transaction, you need $800
  • To obtain it, you need to obtain $40 to pay the upfront charge
  • Once you have $40, the credit card company will give you a deadline to pay a 24.9 percent cash advance APR
  • Over 20 months, you will have to pay approximately $1,000
  • Add everything together; you will have paid an estimated $1,040 to obtain only $800

Other Facts to Consider before Choosing a Cash Advance

On the surface, cash advances may look like a convenient, quick, and hassle-free offer. Once you become tangled in the mess of repaying the cash advance, then that is when you fully comprehend what it is and how it was not the best option for you take.  Here are some facts of why you should not borrow money using cash advances:

  • With cash advances, you have to pay interest fees from day one.
  • You will have to pay high fees to take out a cash advance against your credit card
  • The interest rates associated with taking out a cash advance is high
  • By taking out a cash advance, you will be lowering your credit card limit

In the end, it all depends on what you think is the best option for you. Should you take out a cash advance? If yes, will you be able to repay it in the given timeframe? You need to consider all the factors before you decide to apply for a cash advance. Conversely, you can always choose alternative methods to obtain cash such as borrowing from a friend or using your savings.…


Raul Stevens February 8, 2017 Investment

With the coming up of the internet, people have started shopping online, buying food, booking taxi for commuting, carrying out banking transactions, etc. Nowadays, online trading is the preferred means of stock trading. The online portal is used for buying and selling of stocks. The entire process becomes very quick and easy. You may place orders for stocks after considering investment options. Without leaving the comfort of your home or even talking to any of the brokers, you can learn a lot about the share market and gather information on investment options. A lot many benefits can be reaped with the online stock trading. So, if you are willing to consider this medium of finance or want to invest on the stock market, you can trade online. Let us now check out the merits of internet trading.

If you lack finances to work with a broker, you may consider the portal. It is not possible for most investors to hire full-service broker for stock trading. As the online trader, you may buy or sell the stock without even taking advises from the broker.

Online trading eliminates the need for any middle man. Many years back, it was not possible to trade in stocks without talking to the broker. Now, things are just a few clicks away. This has made online trading extremely alluring for the investors.

When the broker executes your trades or purchases and sells the shares, things become costly. But then, in the online trading, there is no need to pay brokerage fees. Even if you wish to take up brokerage services, online brokers would not charge higher amounts.

With the internet portal, you may trade whenever you feel like. Thus, you exercise greater control over your investment portfolio.

You can carry out instantaneous transactions without waiting for the broker and also know about the best bets and review your options.

There is every reason to consider online brokerage since they provide advanced interfaces to see how your money is performing in the market.

Most online brokers provide heavy discounts on services.You may check out the gains and losses throughout the day by simply logging into your account through smart phone or PC. Traders of all levels may even access the brokerage tools to trade better.With online trading, you enjoy more flexibility and control over your investment portfolio. In stock trading, time is the main priority and thus it is online stock trading which offers a lot of speed to the investors. Immediately you may execute any trade.

With the internet portal, you have the advantage of taking stock trading into your own hands. Most of the times advises offered by brokers are biased. For investors, they can be lot troublesome. It is online trading which saves you from such biases.With the option of online trading, you can access a lot many trading tools offered by companies. By accessing them, anyone can optimize trades. Monitor your investment in the real time with internet trading. The convenience offered by such a trading mode is worth considering.…

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