If you have a credit card, you likely receive blank checks from your credit card company. You can use these checks in a crunch to pay a bill or get some quick cash. It’s a good idea to save the checks so you have them available to use in a pinch. They provide a good alternative to payday loans or the pawnshop.
But, you should make sure to read the fine print so that you know what it is going to cost you. Most card companies charge a transaction fee equal to about 3% of the amount you borrow. Some companies cap the fee but others have no limit so you will need to proceed with caution. For example, if you took a cash advance of $4,000, your fee could be as much as $120. You should be aware that you will probably incur a higher interest rate with cash advances than with regular purchases. In addition, there is usually no grace period when you take out a cash advance. This means that the interest will start to accrue as soon as you get the cash.
Another thing that you should know before you take a quick cash advance is that if you take out too much and exceed your cash advance limit, you will be charged additional fees as well as higher interest rates.
It’s a good idea to contact your credit card issuer before you use a cash advance check to get quick cash. You should negotiate to see if you can get a better interest rate. It is also possible to negotiate a lower transaction fee or to get the fee waived entirely.
Note that there is a difference between a balance transfer and a cash advance. Cash advances tend to incur expensive transaction and processing fees and can have very high interest rates. So, in the long run, you may be better off charging the expense on your card rather than taking a cash advance to pay for it.
If you want additional information regarding how to obtain fast cash, check out Quick Cash Corner.
Sunday, July 26, 2009
Saturday, November 10, 2007
Proper Preparation Prevents Post-Holiday Credit Card Panic
“Holiday Hangover.” You may have heard the phrase in years past. It’s that anxious feeling you get when you’ve spent too much during the holidays. These simple steps will help you to avoid the struggle to pay off credit card debt after this holiday season. Instead you'll feel in charge and ready to face the upcoming New Year free of overwhelming debt.
1. Set A Spending Budget: As a family, review your monthly budget and decide how much you can actually afford to spend on holiday gifts without going into debt. Factor in all holiday expenses including such items as cards, postage, decorations and anything else that you will purchase using your credit card during the holidays. Don't spend more than you can pay back in one month.
2. Make a Complete List: Make a list of each and every person for whom you need or want to buy a gift. Be sure to include gifts for teachers, postal workers, co-workers, etc. The costs of these small gifts add up quickly and can cause you to exceed your gift budget if you don’t take them into account.
3. Set A Limit For Each Person: Decide how much you will spend on each person on your gift list, then add it all up to be sure you don't exceed your total holiday budget. Include money you'll spend on holiday cards, postage, wrapping paper, etc.
4. Determine Which Credit Card(s) You Will Use: First, decide how many cards you are going to use for the holiday season. Often, one card is enough and the use of multiple cards is an unnecessary temptation to overspend. Second, use a low interest credit card to avoid additional expense. Third, stay away from new store credit cards. They often have higher interest rates then regular credit cards. An instant savings of 10 percent on a first purchase may be tempting but if your purchase isn’t a really expensive one then a store credit card is a poor choice. Each time you apply for a store credit card, a new inquiry goes on your credit report. If you are approved, you will have even more credit available. Multiple inquiries and too much available credit reduces your credit score.
5. Don't Let Guilt Get You Off Track: Some people compensate for not spending quality time with family by overspending during the holidays. If you are feeling guilty about a particular relationship, work to repair the relationship rather than spending too much in search of a quick fix.
6. Do Not Touch Your Emergency Fund: Your emergency fund is for emergencies, not the holidays. An emergency is a “sudden, urgent, usually unexpected occurrence or occasion requiring immediate action.” The holidays do not qualify as an emergency because they happen every year.
7. Be Wary Of Last-Minute Shopping: Those last minute panic shopping sprees can ruin your budget. Plan ahead and give yourself plenty of time to shop.
8. Get Creative With Gifts: Try giving low or no-cost gifts such as washing the car, cleaning the garage or running errands. Most people also love to receive homemade cookies, cakes, or other treats. Take advantage of your cooking skills or other talents to make holiday gifts.
9. Stop Shopping When Your List Is Complete: As soon as you have purchased a gift for every person on your list, put your credit card away and stop shopping. Get your shopping completed then stay out of the malls until the holidays are over.
10. Start Saving Now For Next Year: This is the best step you can take to avoid credit card debt in coming years! Try joining a Christmas Club at your bank now to prepare for next year.
This year avoid overspending by planning ahead.
Happy Holidays!
By: CreditSearchPro.com
Please feel free to reproduce this article provided that the By Line is included as well.
1. Set A Spending Budget: As a family, review your monthly budget and decide how much you can actually afford to spend on holiday gifts without going into debt. Factor in all holiday expenses including such items as cards, postage, decorations and anything else that you will purchase using your credit card during the holidays. Don't spend more than you can pay back in one month.
2. Make a Complete List: Make a list of each and every person for whom you need or want to buy a gift. Be sure to include gifts for teachers, postal workers, co-workers, etc. The costs of these small gifts add up quickly and can cause you to exceed your gift budget if you don’t take them into account.
3. Set A Limit For Each Person: Decide how much you will spend on each person on your gift list, then add it all up to be sure you don't exceed your total holiday budget. Include money you'll spend on holiday cards, postage, wrapping paper, etc.
4. Determine Which Credit Card(s) You Will Use: First, decide how many cards you are going to use for the holiday season. Often, one card is enough and the use of multiple cards is an unnecessary temptation to overspend. Second, use a low interest credit card to avoid additional expense. Third, stay away from new store credit cards. They often have higher interest rates then regular credit cards. An instant savings of 10 percent on a first purchase may be tempting but if your purchase isn’t a really expensive one then a store credit card is a poor choice. Each time you apply for a store credit card, a new inquiry goes on your credit report. If you are approved, you will have even more credit available. Multiple inquiries and too much available credit reduces your credit score.
5. Don't Let Guilt Get You Off Track: Some people compensate for not spending quality time with family by overspending during the holidays. If you are feeling guilty about a particular relationship, work to repair the relationship rather than spending too much in search of a quick fix.
6. Do Not Touch Your Emergency Fund: Your emergency fund is for emergencies, not the holidays. An emergency is a “sudden, urgent, usually unexpected occurrence or occasion requiring immediate action.” The holidays do not qualify as an emergency because they happen every year.
7. Be Wary Of Last-Minute Shopping: Those last minute panic shopping sprees can ruin your budget. Plan ahead and give yourself plenty of time to shop.
8. Get Creative With Gifts: Try giving low or no-cost gifts such as washing the car, cleaning the garage or running errands. Most people also love to receive homemade cookies, cakes, or other treats. Take advantage of your cooking skills or other talents to make holiday gifts.
9. Stop Shopping When Your List Is Complete: As soon as you have purchased a gift for every person on your list, put your credit card away and stop shopping. Get your shopping completed then stay out of the malls until the holidays are over.
10. Start Saving Now For Next Year: This is the best step you can take to avoid credit card debt in coming years! Try joining a Christmas Club at your bank now to prepare for next year.
This year avoid overspending by planning ahead.
Happy Holidays!
By: CreditSearchPro.com
Please feel free to reproduce this article provided that the By Line is included as well.
Saturday, September 1, 2007
How Many Credit Cards Do You Need?
A few years ago there was a story circulating about a guy in California, Walter Cavanagh, who had close to 1,497 valid credit cards. His total credit line was $1.7 million. And, guess what? His credit score was nearly perfect. His secret to credit success was that he paid off his credit card balances each month.
Mr. Cavanagh didn’t actually use all of those cards. He started collecting them because of a bet he had with a friend. Mr. Cavanagh ended up in the "Guinness Book of World Records" where he became known as "Mr. Plastic Fantastic." Unless you are trying to beat his record, there would obviously be no reason to collect so many cards.
The experts differ somewhat regarding how many credit "vehicles" are held by the average consumer. Some say most Americans have between 5 - 10. Others say that 13 is a more realistic number. But the real question is, "How many credit cards should the average person carry?"
Again, the experts have varied opinions on this issue. However, it appears that most think you should have a minimum of 2 cards and a maximum of 6. The bottom line is that there is no one correct answer. The number of cards that is right for you is a very personal decision. There are so many factors to consider. And those factors are largely dependent on each person’s habits, lifestyle, and economic circumstances. There is an excellent article here that provides further insight into this issue.
Mr. Cavanagh didn’t actually use all of those cards. He started collecting them because of a bet he had with a friend. Mr. Cavanagh ended up in the "Guinness Book of World Records" where he became known as "Mr. Plastic Fantastic." Unless you are trying to beat his record, there would obviously be no reason to collect so many cards.
The experts differ somewhat regarding how many credit "vehicles" are held by the average consumer. Some say most Americans have between 5 - 10. Others say that 13 is a more realistic number. But the real question is, "How many credit cards should the average person carry?"
Again, the experts have varied opinions on this issue. However, it appears that most think you should have a minimum of 2 cards and a maximum of 6. The bottom line is that there is no one correct answer. The number of cards that is right for you is a very personal decision. There are so many factors to consider. And those factors are largely dependent on each person’s habits, lifestyle, and economic circumstances. There is an excellent article here that provides further insight into this issue.
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