The Pros and Cons of Credit Card Cash Advances

Are you thinking about getting a cash advance on your credit card? Do you feel that this is the best way to better your finances and to get cash in your hands instantly? If you are unsure of the pros and cons you will want to step back and learn more. There is nothing worse than opting for a cash advance without first thinking of the consequences.

Cash Advance Advantages

1. Fast Cash. If you have an immediate need for cash, using this option could be the answer you are looking for. Before you opt for this make sure you are aware of how much cash your credit card plan can offer , as well as what your current overall credit card spending limit.
2. Ease. It is more convenient to opt for a cash advance as opposed to applying for a loan. Your credit card company can get you the cash you need within a couple of days. Not to mention the fact that you already do business with them so you know they are trustworthy. This is fast cash without a lot of effort or delays.
3. Emergencies. Believe it or not, there are still some places that do not accept credit cards. Having a credit card with a cash advance option can make it easy to get the money you need so you can take care of your emergency without delay.

Cash Advance Disadvantages

1. High APR. Generally speaking, your cash advance APR interest rate is going to be much higher than the APR interest rate on your regular credit card debt. Are you willing to pay more in finance charges just so you can have cash in your hand? This is a question that you need to think about before starting the cash advance process.
2. Fees. Does your credit card company charge fees on top of a higher APR? Since most credit card companies do charge fees, this is something that you want to check into.
3. Fast and Easy to get what you need. This is both a pro and con. It is nice to be able to secure a cash advance almost instantly when you need one. But on the other hand, this convenience can also work against you. Fast cash means you may jump the gun and pull out cash quickly without first thinking of the consequences.

As you can see, you need to think about what you are doing before you opt for a credit card cash advance. There are definite benefits of a cash advance, but on the other side there are drawbacks as well. Once you compare the pros and cons you can then decide if a cash advance on your credit card is worth the time, effort, and added fees and finance charges.

The best place to find the information you need is to look at your credit card offers “terms and conditions”. In the fine print you will find the terms for a cash advance option with details on the interest rate you will pay on the cash advance as well as the amount of cash you will be able to get on the card and additional fee charges.