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 are enormous.

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.




 
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