When you avail of cash advance
online, the cash will be transferred electronically to your account. However,
you can obtain your cash by using either your credit card or through checks.
Thus, before you proceed to getting cash loan it is important to know first the
methods of converting your loan to cash. This loan scheme in one way or another
is an expensive method of availing loan because of some reasons.
Reasons Why Cash Loans Through
Credit Cards is Expensive
1. Cash advance fee - This fee is
usually the percentage of the cash you borrowed. Although some lending
companies offer flat-rate fee but the percentage differs from one state to
another.
2. No grace period - From the moment
you receive your cash advance, the interest starts to accumulate until after
the loan is fully paid. Some lending companies do not allow grace periods to
the cardholder.
3. High interest rate - Cash loan
through credit cards charge higher interest rates than the normal purchases.
Although the card issuers abide by specific regulations, the interest rate
ranges at about 20%.
To avoid incurring high interest
rates, it is advisable not to use credit cards when you are going to avail of
quick cash. Although it is very convenient to use credit cards in converting
your loan to cash, the benefit is outweighed by its cost. Hence, when the time
comes that you are financially challenged, understand first what method you should
use to obtain your cash loan. You can ask from lending company what method is
suitable to your needs.
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