Credit cards are fast becoming the most popular medium of transaction in the modern era. The concept of credit card is not new to the world. And, as the use of the cards to make transactions is increasing, so are the services that are offered by the credit card companies. Cash advance is a very good service that is provided by almost all credit card service providers. The advance cash facility on credit cards is based upon the common feature of 'overdraft' that is offered by most banks.
In the following article the concept of cash advance has been discussed. The cash advance facility is offered by most credit card companies that include CitiGroup, Discover Credit Card, American Express and even Chase Credit Card. The advance cash facility has been recently highlighted, and criticized due to the high rate of interest.
What is a Cash Advance Credit Card
As mentioned above the cash advance on credit card is a facility that can be used by a credit card holder. The mechanism of a credit card is extremely simple. The credit card holder can use the card for making purchases and to spend as he wants. The company bears the expenditures for the time being. At the end of the billing cycle (which usually spans a month), the total expenditure plus the interest rate, often known as APR (Annual Percentage Rate), is added to it, and the bill is sent to the credit card holder. The amount that the holder owes to the company is often referred to as the credit card debt.
Apart from making purchases with the help of the credit card, the card holders can use different facilities that are attached to the credit card. Cash advance on credit card is one such facility. This service is also quite simple to use. Just as you use the credit card to purchase, you can also 'borrow' direct cash from the credit card company. The repayment and its interest rate is included in your regular bill. Here's who you can access such a facility.
How to get Cash Advance on Credit Card?
The procedure to avail advance cash from your credit card account is also quite simple. All you will have to do is check with the service provider whether you account has a cash advance on credit card facility. In some cases, the credit card companies do not provide such a facility in credit card offers, it basically depends upon your credit card agreement.
If you have the cash advance facility enabled, then it is time to check the specifications. When you are borrowing, the credit card company is bound to charge you with some or the other interest which, in most of the cases, is a bit higher than your ordinary interest APR. In addition to that you might be also charged with an upfront fee. Calculate and check how much you would owe to the company.
There are three basic methods that you can adopt in order to get such a cash advance on your credit card. First you will have to send an email to the company or you might have to fill in a form at the company's regional office. Then the company, in three options, either will wire you the cash advance to your bank account, which you may withdraw for use. Or you will have an option of withdrawing the same using the card at an ATM (charge may be levied). The last option is to collect the cash from the company's office itself.
The credit card cash advance is often considered to be a better option than payday loans and cash advance loans as they are cheaper and a credit report check does not come into picture. Cash advance is also a better option for emergencies, as the service is very fast. Just beware of the fees and interest, and make it a point to pay your credit card bills on time, as late or default payments may hurt you a lot.
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