Mastercard Cash Advances Explored In Basic

by David Jenyns on August 6, 2011

Think of the cash advance that you get from your employer. Now think of your credit card giving you the same option. That is what the MasterCard cash advances are all about it, it is instant cold cash accessed via your MasterCard credit card. And it is retrieved by swiping your credit card on an automated teller machine (ATM) using a special PIN that is specifically given for the credit card cash advance program.

Normally, when you receive your credit card statement, you will notice a part of your bill that tells you how much is still “available for cash” and this represents the money that you can still withdraw as a cash advance. This is usually a fixed percentage of your overall credit limit which can increase depending on how you paid your former cash advance transactions. If you are in great need of instant cash and you do not have the luxury of time to apply for bank loans which will take a considerable amount of time before it gets approved and released, one of the nest options would be your MasterCard cash advances. But, a lot of financial experts will caution you into thinking twice in taking advantage of your credit card cash advance features because it entails huge interest rates and there is no grace period on the payment, the charges automatically racks up once you withdraw your cash so unless you really badly need it and using it far outweighs the charges that you will get for withdrawing cash advance, then by all means go for it. Always keep in mind that cash advance feature provided by MasterCard should be used strictly for EMERGENCY purposes and only when credit card payment is not accepted.

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Fees can easily pile up on a credit card cash advance: the usual one to four percent automatically charged to the cash advance itself which instantly commences on the day you withdrew, the ATM fee, and the late payment fees once you are unable to pay on time. And of course, you know the whole scenario when you miss a payment – you get reported to the credit bureau, your credit score gets hurt, and the black mark stays in your credit report for the next seven to ten years.

Since financial emergencies may occur any time, it is best that you make yourself ready by reading thoroughly the terms and conditions set by your bank on MasterCard cash advances especially the fine print. Always be aware of your credit card limit since exceeding it with your cash advance may result in overage charges and, of course, higher than normal interest rates. The only way to be responsible with your finances is to know your limitations and you do not exceed it.

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