A cash advance fee is an additional charge by your bank for utilizing a personal credit card to acquire cash. This fee is stated in terms of either a fixed or a percentage of your cash advance amount. Banks will usually limit the total that is available to be borrowed to a maximum dollar amount, and then they will deduct the fee from the cash advance when the cash is repaid… The reason that the cash advance fee exists is to offset any possible lender fees that may apply at the time of borrowing.
For some people, cash advances are a convenient way to get quick cash when in immediate need of cash before payday. Others may use cash advances for making large purchases such as traveling, which requires a lot more cash than what is typically carried on most credit cards. Still others may use cash advances for making payments for items such as utility bills and insurance, for which a small monthly fee is usually required. The cash advance fee that you pay will depend on the bank that you use and also how much cash advances are taken out. Many banks charge a daily, weekly or monthly fee.
Some companies will offer a debit/credit card that allows the customer to make purchases online using their credit card. This type of cash advance fee may not be different from the credit card charges, but it is not widely advertised by the companies. When using a debit/credit card, there are no cash advance fees involved. The account holder simply uses the credit card to make purchases online.
Another category of cash advances are those provided by independent financial institutions that do not require a minimum amount of balance or a regular credit check. These fees vary from company to company, but there is typically a flat fee assessed. Some companies charge an annual membership fee that must be paid in addition to any fees. Others are completely online and there are no membership fees. In many cases, you are charged on a month-to-month basis.
There are some situations where these fees are generally applicable. For example, when an individual overstep their credit limit and needs to withdraw cash before their account falls below the credit limit, they will generally be required to pay a cash advance fee that may be up to ten percent of the full amount of the credit limit. This percentage can increase or decrease according to the company policies. If the customer has been paying bills on time, they will generally not be required to pay an additional membership fee for this service.
There are some situations where the requirement to pay a cash advance fee will not be applicable. For example, in cases where the person already has an account with them and has a credit limit that exceeds the fees that apply. In these situations, the customer is simply charged an extra fee for cash advances. In most other cases, the credit limit will be increased if it is higher than the fees that apply. Therefore, customers should make sure that they do not have a high credit limit and do not choose to take out cash advances that are higher than their available credit limits.
Finally, some people find that they only need fast access to money when they are in real need of money and cannot wait until their next payday. In these cases, they will be able to get the funds they need by taking out a loan with the company from which they have their account. This loan will generally have a one time application fee and may be higher than the fees for cash advances. Because these loans are for a short period of time and meant to be used solely for fast access to money, they usually do not require a membership fee.
Payday loans are designed to help people in real need of cash advance fees, but customers should look into the fees for cash advances before taking out these loans. Most credit cards already charge a fee for cash advances, so it is unnecessary to add to the total cost of paying by credit card for a short period of time. Additionally, if the customer needs to use their credit cards at a later time, they may find that they are unable to do so because they are out of money. In these situations, they should look to cash advance loans that do not require them to charge a membership fee.