Most people do not realize that the two or three cards (hopefully not much more than that!) that are sitting in their wallet hold a powerful punch in the world of financial matters. Credit cards give people ability to purchase items yet pay for them later - sometimes much later! Carrying credit cards means you can carry less cash and checks. Credit cards bring safety, security and a peace of mind to many people.

Whatever the brand (carrier) your cards happen to come from, you can enjoy the benefits that credit cards possess. Whether you have VISA, MasterCard, Discover or American Express it can come in handy for you when you need it the most. Credit cards equal power for many people- a power that often goes unnoticed!

Credit cards can be used at ATM's for cash advances, they can be used at the counters of millions of retailers and they can be used to pay the bills.

The best thing is, credit card companies seem more willing than ever to pony money over to card holders in the form of loans! Credit card companies are very competitive when it comes to their customers and they will do whatever it takes in order to keep them. That is part of the reason potential card holders are becoming bombarded with credit card offers of the ‘best credit cards' or the most rewards in a card. The best thing a person can do is compare credit cards to find the best one. But that is a whole different subject, right now we are concentrating on the powerful benefits these credit cards have. But remember shopping around can be very beneficial!

Cash Advance Never Cost So Much!

Your credit card can be used to make purchases over the counters of millions of retail shops around the world. But it can also be used at ATM's for cash advances. A cash advance is when you borrow off of your credit in order to get cold hard cash. Usually when people use their credit cards they never come in contact with cash at all. They pay with credit and sign their receipt and leave the store. However, when you go to an ATM and punch your PIN number in, you have the opportunity to use your credit card to access cash!

There are some downsides to cash advances however. Credit card companies realize the convenience of this form of exchanging credit for cash so of course, they charge for it. Cash advance fees can get pretty expensive. Not only will you pay for the service charge of the actual ATM, you will pay your credit card company for allowing you to use the card in this way.

The details on cash advances are usually hidden among the fine print on the card applications. If you get a lot of online credit card offers make sure you read them carefully before choosing a specific card. There are all sorts of selections but make sure you look for a card that has a low cash advance fee. Fewer than 20% would be decent but fewer than 15% on cash advances would be ideal.

So why would a credit card company charge so much more for cash advances? When their normal APR is 11% why would they charge 25% for a cash advance? They say it is because it costs them more to process than other purchases. Whether you choose to believe this or not you'll still be stuck paying fees if you decide to use a cash advance.

Use Cash Advances Wisely.

Using cash advances is pretty attractive to everyone because everyone loves convenience. If you are a USA, UK or Canadian resident then you are especially used to the impatience of society and the lean toward convenience. Your credit card is a powerful tool that can be used in a variety of ways- good or bad. Many people abuse their cards by misusing them either by maxing them out or by choosing cards with high interest and then letting their balances carry over month after month. There are all sorts of ways to take care of both your credit score and your credit card when making purchases.

A great way to prepare for cash advance would be first of all to get a debit card. A debit card can be used much in the same way as a credit card but instead of credit being used, a person's checking account is directly involved when they use their card. Debit cards, otherwise known as ATM cards, usually have very little fees (if any) for ATM usage and when you use your card at the same ATM as your bank you won't have to pay any fee at all! If you are a person who does a lot of cash advances then it is advisable to get a debit card. There is no point in paying high interest rate just in order to access your own money!

As long as you are a smart consumer and know how to exude self discipline in your spending then credit cards (especially when combined with debit cards) can end up being a powerful daily tool for you!

Copyright © 2007-2008 www.unioncreditreport.com. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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Comments

Karen, 11:56 PM, September 09, 2007
I used to have both a credit and a debit card. It's great that you have mentioned that debit cards are the best for cash advances. I understood it by my own experience. Why do I have to pay for getting my money from my account?

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