Cash Advance Fees
Although cash advances can provide consumers with
convenient and instant access to "cold cash"
in times of financial need, you'd better avoid this
feature of your secured credit card at all possible
because the fees and charges applied to cash advances
Cash advances generally have a higher interest rate
and additional fees with no grace period. Cash advance
fees can be between 2% and 5% of the amount taken.
Fees for cash advances vary, but fees can be very costly.
Fees are computed using two calculation methods. Many
secured card issuers calculate fees on a percentage
basis, which typically ranges from 2% to 4%. Other issuers
charge "flat fees" for advances. "Flat
fees" are not based on
It is important to remember that a cash advance is
not free money and is in actuality very expensive money.
Key points to remember:
- You pay additional fees
- Higher interest rates on the advance
- No grace period even if you pay it back immediately
you will pay interest on the amount borrowed.