Whether you are trying to build your credit score or need cash to off-set last minute holiday purchases, a cash advance can be a wonderful tool. However, there are a few things that you need to consider before writing that check against your credit card.
1. Only request an amount that you can afford to pay back. While the thought of an extra thousand dollars may be enticing, chances are, unless you normally have an extra thousand dollars in your account, it may be difficult to pay back that large of a sum. Consider your income for the next several months. How much can you actually afford to finance?
2. Pay attention to special interest rates. Credit card companies often offer special low interest rates for cash advances during certain times of the year. These can be very beneficial. However, be aware that these rates are usually time-bound. They may only last for six months to a year. This is great if you can pay off the amount within that time frame, but if you can't, the interest rate may jump to well over 20% at the end of the promotion period.
3. Keep an eye on your credit score. The amount of revolving debt that you have compared to the total amount of credit available can impact your credit score. Cards that are close to being maxed out may hurt your rating, while cards that contain a small balance that is consistently paid off can have a more positive impact. When considering making a cash advance, it is better to use a card with either a higher limit or a smaller current balance.
4. Make sure to pay your bill on time. Many times, promotional offers are based on your good credit rating. If that changes, it can damage your chances of getting offers in the future, as well as destroy the credit history that you are working to build. Paying your bill on or before the due date is a great way to ensure your creditworthiness, and can help you to protect the promotional cash advance rate that you worked so hard to earn. Late payments may cause your account to default, causing you to loose your good interest rate.
Borrowing only what you can afford to pay back, paying attention to the interest rate, keeping an eye on your credit score, and paying your bill on time are all great ways to ensure that the money your borrow is a helpful financial tool, rather than a burden. By following these simple tips, you can request that cash advance from a place like USA Cash Services with confidence.
There are a lot of people out there who have a negative view of payday advances and loans. However, many of the people who think negatively about them have either used them incorrectly or have never been in the position where they have needed to use them. I have used payday loans when an unexpected expense popped up, like a car repair. They have helped me out extensively. I decided to create this website to discuss the positive aspects of these loans and how to properly use them. If you need money, I hope my website helps to educate you on the benefits of such a loan.