What to Understand about Visa Cash Advance
Taking a cash advance with your Visa card is easy; however, it entails very high finance charges and interest rates. It can be ideal during emergencies, because it is as easy as withdrawing money from an ATM machine. But, you should be aware that the charges for this kind of short-term loan are not very budget-friendly. A visa cash advance has a preset limit, which may either be the same as or a percentage of your credit card’s assigned credit limit. It is treated like any expense paid by your card, it is deducted from your available balance. However, unlike using your card to pay merchants for their products or services, a cash advance has additional fees associated with it.
Depending on your issuing bank’s specific regulations, you will pay an additional percentage for your borrowed cash, on top of the actual amount of borrowed money. This may involve a cumulative interest that adds to your bill on a daily basis or a fixed interest rate and finance charge reflected on your account on a monthly basis. The maximum amount you can get depends on your total credit line, how much you have already used on your card and other terms coming from your issuing bank. In general, a one-time fee is charged for a cash advance, and, if you do not pay the amount back in full during the item’s grace period, the remaining amount is subject to high interest charges.
About Visa Cash Advance Regulations
All visa cash advance transactions, regardless of the issuing bank’s specific policies; generally have the same major regulations for the use of credit cards for cash advance purposes. Visa charges cash advance fees, finance charges and annual percentage rates (APRs), which might become a serious financial burden if you carry a balance on your account instead of paying it in full during its regular billing cycle. Make sure you study your card’s specific agreements and other account details to know your financial obligations when making cash advance. Take note of your available and outstanding balances, cash advance limit, finance charges, payment due dates, grace periods and APR.
In making a visa cash advance, you need to have your PIN available. This is initially provided by your card issuer. You can readily change your PIN according to your preferences by getting in touch with your financial institution. You can get your cash from almost any ATM machine with a Visa logo. You get your cash similar to any ATM withdrawal, and then you are billed directly on your credit card. As a rule, using your credit card to obtain a cash advance is a bad idea. As stated before, it seems like it should be the same as using your credit card to make purchases—but what people frequently don’t realize is that the rules for using your credit card to make purchases and the rules regarding cash advances are completely different, and not in your favor. You should be fully informed on the different procedures and regulations regarding cash advances before you even consider getting one.
Often your credit card company will send you “credit card checks” in the mail, offering them as an easy way to get your hands on big lump sum of money that you require to settle your debts. What people usually don’t know when they use these checks is that your credit card company will normally treat these “checks” as a cash advance, with all of the accompanying disadvantages. Clearly, any benefits of using a cash advance on your credit card are far outweighed by what it can cost you.
