Credit card Cash Advance is expensive - Only for emergency

Think again when you plan to withdraw some money from atm with your credit card. Credit Card cash advance is quite expensive.

Credit card Cash Advance is expensive

Sometimes credit Card issuers announce that cash advance interest and retails interest have the same interest percentage.

But honestly they are difference. Counting retails interest is not the same with the way bank counts cash advance interest.

If you do a cash advance transaction today, bank will begin to count your cash advance interest from today.

I know that some banks have different policy about cash advance interest. Like American express credit card will not charge you any interest of cash advance if you pay it full in the next billing cycle.


Here are some bad things about credit card cash advance

Lower credit Score

Bank or Credit card issuer will lower your credit score after you do a cash advance transaction with credit card. This can effect your next loan application whether in the same bank or from others banks. Credit card is good to use to pay retails online or offline transaction and cash advance feature is only for emergency financial conditions. So they know that your financial condition is bad if you do cash advance.

High Fee

You will be charged fee for every cash advance transaction you did. And this fee is higher than transfer balance fee.

Daily Interest 

Credit cards issuers will directly begin to count your cash advance interest in the day you did that transaction. And this interest will only be stopped after you pay full all your credit cards bills minimum in two cycles.

So think again before you do any cash advance. Don't do cash advance to buy things that is not for emergency cases.