 |
How To Save Money On Credit Cards
Some credit cards offer a cash advance option. But how good a
deal is this?
Not very. In fact, it can be downright expensive.
Why?
Because every time you use your credit card to withdraw case,
more fees kick in:
- Cash advances can carry an upfront fee of 2 percent to 4
percent of the amount advanced.
- The advances have a higher interest rate than regular card
charges.
- Interest charges begin to mount as soon as the money comes
out of the ATM.
- Many issuers also require you to pay down the balances for
purchases before you pay down the higher-interest cash advance
balance.
Here's an example of how these fees kick in:
Assume you bought a television for $500 on your card and then
took out $50 in cash. Even though you pay the $50 back the next
day, you still lose your interest-free period because the credit
provider deems you pay the cash back last.
As a result you will still owe the $50, but you will now only
owe $450 on the $500 worth of purchases.
You'll continue to forfeit your interest-free period up until
you have completely paid back the full $550. Any future purchases
will still be ahead of the $50 in the payback line.
The lesson is simple: Avoid using your credit card to withdraw
cash wherever possible. You'll save money as a result!
About The Author
Paul Davis is financial writer and contributor to http://debt-elimination-4u.com. Stop by and pick up
your FREE guide on how to get out of debt now at: http://debt-elimination-4u.com/get-out-of-debt.htm
MORE RESOURCES:
MORE COLLEGE CREDITChicago Sun-Times, United States - 11 hours agoDespite the current nationwide credit crunch, the State of Illinois secured $100 million for the student loans by tapping a new source -- credit unions. ... |
Credit Report Need Fixing? Take Action YourselfHartford Courant, United States - 9 hours agoMike Ferrara wants to buy a house in a few months and is worried that mistakes on his credit report will keep him from obtaining the loan he will need. ... |
Credit - Google News
|
|
|
RELATED ARTICLES
Credit
Worthiness
Credit Worthiness is an important business and personal
asset each person has to manage. I mean this is an asset
which could make or break business relationships and
interestingly in some cases personal relationships.
Harassment of People in
Debt by Creditors
HarassmentHarassment of people in debt by creditors or
their agents is a criminal offence under the Administration
of Justice Act 1970. It is often difficult to know what to
do when you feel a creditor is not dealing with your
account fairly.
Using Credit Cards
Wisely
"I think money was stolen from my card" or "I might have
blocked my card in the ATM" - these are frequent problems
that bank customer-support officers usually hear from
agitated clients. Incorrect use of credit cards or wrong
interpretations of their functions are frequent even after
tens of years of credit-card extensive use.
Tips for Credit Card
Surfers
Moving money from credit card to credit card to take
advantage of interest free balance transfers and
effectively borrowing money for free. It's even possible to
make money by borrowing money, transferring the debt to an
interest free card and investing the cash in a high
interest savings account until the interest free period
expires.
The Truth About
Credit
What you might not know about credit.Some people don't know
about a loop hole in the credit reporting system.
Like It Or Not, You Have
A Score To Settle!
Like It Or Not, You Have A Score To Settle! (Part 1 of 2 on
Credit Scoring)Just when most people finish with school and
can stop worrying about test scores, there's a new kind of
scoring that enters the picture. It's called credit
scoring.
Identity Theft
Exploding: Here's How You Can Avoid Becoming A
Victim
Americans are more concerned about identity theft than
unemployment or corporate fraud, according to a survey of
2,000 people conducted by Star Systems.Nine out of ten
Americans demand new federal legislation, while two-thirds
say the financial services industry needs to do a better
job of verifying the identity of customers who open bank
accounts (66 percent) and credit card accounts (72
percent).
Our World Of Credit
Cards! Which One Is Right For You
There are not many of us who do not have a credit card
these days. But, not all of us are as wise in the area of
understanding how they work and how they make money.
The Credit Card Surprise
That You Need to Look Out For
Companies that issue credit cards want to make a profit. No
one disagrees with that.
When You Are Eligible
For A Free Credit Report
By Federal law, you are entitled to one free credit report
per year directly from a credit-reporting agency only if
you certify that:1. You are unemployed and seeking
employment in the next 60 days.
Have You Ever Opened a
Checking Account?
Maybe some of you are saving it in your trusty piggy bank,
under your mattress or way back in a sock drawer. Although
I'm glad that you are saving, your money is not doing
anything for you locked up in your house.
The FICO Score
Misconceptions
There are many misconceptions about credit scores out
there. There are borrowers who believe that they don't have
a credit score.
Credit Card Rates -
Negotiating Rates with Your Credit Card Company
Ok, let's face it, everybody hates high credit card rates,
and they drain hard earned money out of your wallet. As a
valued consumer, it is apparent that you learn how to
negotiate to get the absolute best rate that you possibly
can.
Inflexible Friends and
Plastic Assets, Why Money isn't Buying Love
Anymore
Consumers reject financial advice in favour of financial
frivolityIt would appear that even though their "friends"
aren't as flexible as they used to be, consumers are still
stretching their credit cards beyond the comfort zone.The
vicious circle of debt manipulation involving banks,
consumers and commercial credit companies is putting
consumer spending under strain, as funds begin to dry up.
Credit Card Debt: How To
Control It
A lot of people spend more money than they can afford to
repay toward their credit card debts. To regain control
over your finances and to manage your debt, here are some
solutions you can try.
How To Survive In A
Plastic World, Qualifying For Credit Card
Let's face it, having credit is no longer a choice. "Don't
leave home without it" is more like "can't buy a home
without it.
3 Free Credit Reports
For You
If you were to tell someone that they can have a certain
item for free, more than likely their response would be,
"what's the catch?" In the case of credit reports there is
no catch, you can now get a free copy of this report
through the three credit reporting agencies: Equifax,
TransUnions, and Experian. Let's take a look at the law and
how you can benefit from it.
Different Ways to Borrow
Money
There are many different ways to borrow money. Outlined
below is a useful guide to some of most common ways of
borrowing money.
Will Inquiries Lower
Your Credit Score?
What are inquiries?When you apply for credit the creditor
or lender checks your credit report to verify that you
qualify for the credit or loan you are applying for. The
"inquiry" is then reported to the credit bureaus and shows
up on your credit report.
What Are the Most Common
Ways to Commit Identity Theft or Fraud?
It's the number one source of consumer complaints at the
Federal Trade Commission (FTC), and unfortunately, it's one
of the simplest crimes to commit. Identity theft involves
information from your daily life, from shopping,
bill-paying, and even applying for a job.
|
|
