Today, most employers today will offer a business credit card deal to customers of any level of motivation. If you have an existing business and even if you maintain or expand it, it is not very likely that you will find a card that gives the business more features like an online or in store for your operations.
On the other end, if you are young and you operate from home or if you manage your growing business from a small standpoint, you might see credit cards as a viable way to keep a foot on the gas when you run out of cash. The problem comes down to some of the ways this is done, such as:
1. Getting cash from a financial institution.
2. Getting cash and paying with your credit card.
3. Keeping your checking account account open in order to make payments to it through checks in order to pay off the debt.
4. Missing or running up accounts that you cannot pay for.
5. The use of cash for pay, or charging items on to the bill in a hurry to pay the cashier’s fees without you being able to pay the bill in time and pay the transaction, or you going over the credit limit, which is easier said than done.
All of these situations cause people with more money to become accustomed to using their credit cards for cash withdrawals and payments. However, the credit card companies offer many more ways for consumers to use their credit cards.
A Cash Advances Fee
There are many banks, credit card companies, and companies that charge you, or charge for, offering such an advance fee. Many times, cash advances fees are calculated different from the amount of cash used. A cash advance fee is generally charged up to the bank you use the service. In today’s world, many things will need to be paid for with cash or at the direction of a paying party. It is also important that you know what your bank is letting you use to make sure that you will not get the same benefit simply because you use those cash advances on your credit card.
You also have to pick up where you lost when you charged up to a higher dollar amount on a credit card. Some people will purchase a lower dollar amount on their credit card but use it to pay for other items that the higher dollar amount charges. At this point you are also paying a higher transaction fee and generally dealing with stores which you do not wish to accept.
You have to be sure that you are getting a card that is for your purposes only. If you are not sure, you may not be able to enjoy the cash advances fees you may find yourself paying. It could be dangerous and leave you paying more than the amount you were charged if you do not pay on time.
When Cash Advances are Made
Most banks and credit card companies will make a cash advance with their customers at anytime. If the customer pays by credit card or pre-paid check, you may find that the money on your credit card isn’t exactly what you opened the bill for.
You do not need your credit card to have access to the money on your credit card. So, when you use a credit card to purchase something, make sure you pay off all of your balances on that credit card each month. Credit card companies can charge you higher fees, and you may simply never get the cash that you have wanted, even if you originally borrowed it.
The advantages of either option outweigh the disadvantages, though. Using your credit card for cash withdrawals is going to be safer than you think. There may be some people who use this method a lot that need to get some additional cash, and this fee alone may be worth it. However, you should be aware of the cost of withdrawing cash from your credit card, and then paying it back later with the check. Be sure and pay attention to the fees that come along with using your credit card. You may not be getting any cash right away, and it will take several more months for a cash advance to clear your checking account.
How Cash Advances Make Sense
The way a card company advances funds means what it says: it’s the way money flows. So it means that you need to pay for cash advances using the card right away when you want to cash in some cash cash for later. Most banks and credit card companies will forward cash between you and the bank and not transfer your account balance from other credit cards to them.
If you don’t use that method of cash advance, and you generally are waiting a while before you get cash from a new credit card issuer, it is important to pay off your balances on the credit card or pay on time for the interest your account may accrue on your credit card payment. This way you can avoid charging extra fees.