Dangers of the Cash Advance

Dangers of the Cash Advance

The Check Is in the Mail

Whenever we get our credit card bill, we automatically rip up the alluring ‘check’ that comes in every statement without giving any thought to what is actually being offered. Getting blank checks in the mail just seems like a bad idea.  However, the other day, our friend Mary told us that she had asked a friend for a $500 loan…She explained that she could have gotten the cash via a cash advance from her credit card company, but she wanted to avoid the exorbitant interest charges.  Really?  So, that’s what those checks are for…

What Is a Cash Advance on Your Credit Card Anyway?

Though we have heard the term a million times, we have to say,  we weren’t exactly sure what the definition was and how one went about getting a cash advance.  In a nutshell, a cash advance is when you borrow money from your credit line. You can withdraw it via bank teller, ATM, or by writing a check against your credit card account - hence all those handy checks that come in the mail with your credit card statements that offer you seemingly easy cash when you need it… but buyer beware!

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