Beware Credit Card Cheques And The Cash Advance

If you've got a credit card did you know that you can do more
with it than just use it for payments. 

For one you may receive a credit card cheque book which will
enable you to pay with your card account via a cheque. For those
times when a credit card will not be accepted.

You may also have the opportunity to get a cash advance. A means
of withdrawing cash directly from your credit cardeither from a
cash machine or directly to your bank account. This is great if
you need cash in an emergency. But there's a catch to both these
credit card account features, so be wary.

You Will Pay Much More Interest for the Service

Almost all credit cards charge a much higher interest for credit
card cheques or a cash advance. You may forfeit any
interest-free period, which means that you will start paying
interest on the money the minute you spend the money. You will
also find that most cards will also charge a fee each time you
take a cash advance or use a credit card cheque. Plus using an
ATM could raise the fee further still.

You Will Pop Up On The Credit Company Radar

Whenever you use a credit card cheque or take a cash advance,
you're revealing the fact that you're not just using a credit
card for it's convenience, you really do need the money. This
will be recorded and noted in the credit card company's records
and mark you as someone who possibly shouldn't receive the best
deal. As they see it, you won't be going anywhere.

Spend With the Credit Card Where Possible

Try avoiding using cash to pay for small things and only to find
you have to take a cash advance or use a credit cheque to pay
for bigger things. Instead do it the other way around. If you're
in a situation where you're relying on a cash advance, you
should start using your card for the smaller things where you
wouldn't usually consider it, in order to avoid taking the
advances and paying the extra interest. Think carefully how you
spend.

There are few bills now that need to be paid for with a cheque,
consequently there are fewer reasons to ever use a credit card
cheque. If you're willing to make a call and wait in their queue
for a while or there's a facility to pay online, the chances are
you can get them to accept a credit card payment. Most companies
accept credit cards now. The fact is they're loosing out if they
don't.

Be Wary Of Advance Limits

If you start to rely on cash advances, you'll eventually run
into an advance limit. The credit card companies don't advertise
it, but many of them have limits on how much of your balance can
be cash advances and how much must be in purchases. Check these
limits before you start taking cash advances.

Cash Advances Get Paid Off Last

When you begin to pay back your credit card balance, most
lenders will put your payments towards the lowest-interest
money, your purchases, first and once this is cleared towards
any other lending. This being the case you will always be paying
the higher interest on the cash advance or cheque until you
clear your credit card debt completely and get your balance back
to zero.