Cash Advances on your Credit Card

Don’t do it. Just don’t.

First off, the catch is, you start accruing interest from the moment the ATM spits out money into your grubby little hands. Yes, it’s cheaper than a payday loan, but you’re much better off if you’re in a bind paying your utilities or needs with your card as a purchase.

One: you have time to pay it back before being charged for using it. And Two: you won’t be paying 20%+ APR for the priviledge.

And don’t think for one second that we don’t know you’re using borrowed cash. That data goes to the bureaus like everything else, and you could end up having all your other cards and loans go to the universal default for the “We don’t think you know what you’re doing with borrowed money” clause violation.

 Be smart, do without that latte or that haircut until next payday. Better yet, work on your emergency fund for when things get rough.

~ by creditcardboffin on June 8, 2007.