You can use your card to make a cash withdrawal from an ATM. A credit card cash advance provides an affordable way to borrow money, especially if you now have a very bad credit history. It's an excellent source of emergency cash because you can get the money you urgently need within seconds of reaching a cash point machine.
Pay emergency bills with a credit card cash advance
The demand for express cash has grown exponentially over the last decade. This is because you're able to get the money you need within a few minutes and can use it for any purpose. There has been a dramatic increase in the number of people who have taken out a fast cash advance on a credit card to pay their mortgage or auto loan. If you have a bad credit history, there's nothing to prevent you from using credit cards to get an emergency cash advance. The agreement is already in place and the onus is on the issuer to revise your credit limit or change the terms of the agreement. If this hasn't happened, that isn't your problem. This means that you can borrow money quickly at the lowest interest rate. Issuers allow you to withdraw a defined percentage of your allocated credit limit from an ATM. You can find out how much money you can withdrawal by checking the terms and conditions of the agreement or by speaking to a member of your bank's call centre. You cannot withdraw your full limit, but you can still withdraw a substantial sum of money if you have a high credit limit.
Why do issuers allow you to get a cash advance on a credit card?
Not surprisingly, issuers are looking to make money from this lucrative activity. Finance charges include a higher rate of interest and a percentage fee based on the amount of money that you withdraw. You get some quick cash, but financial institutions get to enjoy a higher profit margin from people who are often very reliable and dependable payers. Interest accrues immediately so you won't get to enjoy a grace period on a credit card cash advance. The sooner that you repay the debt, the less interest will accrue. Don't fall into the trap of making the bear minimum repayment each month as this prolongs the life of the debt. Even if you're really struggling, try to pay back as much as you can afford at the end of the month.