Credit Card Consolidation Loan Explains Credit Card Advance

August 22, 2014   Business News
(PRLEAP.COM) August 22, 2014 - Credit Card Consolidation Loan discussed in an article published recently how consumers can be guided in taking out cash advances on their credit card. The article titled "4 Questions Before Taking Out A Credit Card Cash Advance" shares four specific questions that can be used as a checklist before heading to the nearest ATM to get cash from credit card.

The article shares that getting a cash advance is a very costly endeavour. The normal cost for cash advance is 1 to 7 percent on the annual percentage rate or APR. This means that if the credit card has a 15% APR, the rate for the cash advance could be as high as 22%. That is a a very high interest rate on credit and can lead to further debt when left unchecked.

The first question that a credit card holder needs to look into is how long it can be repaid. As lenders provide teaser rates of 0%, this usually does not apply to cash advances. As such, if the consumer will not be able to repay the whole amount within one billing cycle which is about 30 days, it is better to look for other sources of cash. This is because charges and fees will start to be added on the bill.

The article shares that the next question that can be used to guide a consumer in taking out a cash advance on the credit card is if there are other sources of funds besides cash advance. This can mean relatives and friends. The most usual suspect are parents and best friends. The reason for this is that these people might be able to give better terms than those in cash advances in credit cards.

The next one is to know if the purpose to take out a cash advance is to meet a need or a want.If it is a want, then it is better to just save up for it with cash. If it is a need, then taking out a cash advance can be a valid course of action. The consumer just has to make sure that it is repaid at the soonest possible time.

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