How To Use A Credit Card For Cash
When it comes to credit cards there's one big rule
. Actually, there are a few big rules but this is certainly one of the biggest: don't ever use a credit card to take out cash.
Cash transactions on a credit card are also known as cash advances and cover a lot more than just getting cash out a hole in the wall.
What does make up this category is very much up to the lender's discretion but, depending on the card, it tends to include: getting cash back at the till when you make a purchase; buying foreign currency from an exchange and making any gambling transactions.
In fact, the gambling prohibition is so tough that some people have been charged even for buying food in a casino.
Even after that, the cash advances are bad because they are charged a very high interest rate - usually at least five percentage points higher than the interest charged for purchases - and that's without an interest-free period so there's no grace period.
Many credit card providers also charge a fee when you make a cash advance transaction. This is a lump sum, typically around two percent of the fee or five pounds, whichever is the greater.
This is true of most plastic from instant decision credit cards to application-heavy reward cards but it doesn't count for debit and pre-paid cards which have their own rules.
That doesn't mean you need to rule out cash altogether when you do a credit card comparison, though.
There are ways and means around this problem.
The first thing you can do is look at 0% balance transfer credit cards which also have a money transfer facility.
These are sometimes known as super balance transfer credit cards and all it means is that you're doing a sort of backwards balance transfer.
Rather than moving a high-interest balance from elsewhere you're moving money from your credit limit on the card into a current account.
Like a normal balance transfer, you pay back at 0% and need to avoid other transactions on the card and pay it all back within the zero percent offer period.
The second thing you can do is look for a credit card which is attached to a bank account. This way you can just move money fairly freely.
However, these accounts are becoming increasingly hard to track down so don't hold out too much hope.
Finally, you could pay for an item in a shop using a credit card and then take it back and get the amount back in cash. Most retailers don't do this, though, so check before you go for it.
by: Julia Cook
Aarkstore Enterprise---fipronil Survey In China Aarkstore Enterprise---metalaxyl Survey In China Turning Negative To Positive Cash Flow With Factoring What Makes Business Evaluation Systems Your Best Choice For Your Clients? All About Cash Gifting Programs Entrepenur Business Opportunity Small Business Loans In Ontario For Working Capital 3 Solutions! Follow The Business Standards To Ensure Fast Property Sale Business Intelligence Solutions Using Utah Business Movers Cash In After Training For A Career As A Professional Plumber Your Favorite Utah Mover Is Also Your Favorite Corporate Relocation Company Effective Blogging Strategies For B2b Businesses