Maintain your old Siemens Hipath system

Convenience Can Be Costly

You've just opened your credit card bill and attached to your statement you find a "convenience check" included. It may already be filled out with a dollar amount such as $300, $500, or even $1,000. Your mind fills with ideas of what you could buy with this "instant" money. A new summer wardrobe, a nice dinner and tickets to a concert, a weekend getaway.

But before you go off on a shopping spree, you should be aware that your "convenience check" is nothing more than a cash advance on your credit card. Cash advances on credit cards carry many extra fees, often overlooked or misunderstood by consumers.

Here's a quick look at the types of fees most card issuers charge for a cash advance:

1) Upfront fee of 2-4% of the amount advanced. On a $1,000 cash advance your fee will range from $20-$40 in addition to the interest charges.

2) Higher interest rate than on purchases. Many credit card companies charge 18% or more on cash advances. In addition, most companies apply only a small percentage of your monthly minimum payment toward the cash advance.

Some require that you pay down the balance on your purchases first before applying payments to the higher-interest advance. In other words, you'll be paying fees and interest on your cash advance for a long time, especially if you only pay the minimum payment.

3) Cash advances normally carry no grace period. This means interest charges accrue as soon as you withdraw money or cash the convenience check.

By law your credit card company must disclose any fees associated with a cash advance. The easiest way to find out what fees are charged is to carefully read your credit card statement or to call your credit issuer's toll-free customer service number and ask questions.

Credit card companies charge these fees for two main reasons. One, to cover the costs to process this transaction which are often higher than a regular credit card purchase. And secondly because of the percentage of defaults among credit advance users. These costs are then passed along to you the consumer in the fees and interest rates associated with a cash advance.

The next time you are tempted to cash that convenience check or withdraw money from an ATM using your credit card, be sure you understand the fees and long term effects of using a credit card cash advance.

© 2004, www.yourfreecreditreportnow.com
Author: James H. Dimmitt - James is editor of "TO YOUR CREDIT", a weekly free newsletter. Subscribe to the newsletter by visiting http://www.yourfreecreditreportnow.com.

In The News:

Russia 'open' to Putin White House visit
Fri, 20 Jul 2018 11:59:00 +0100
Moscow is open to a possible visit by Vladimir Putin to Washington after a surprise invitation from Donald Trump, Russia's US envoy has said.

Macron fires aide who stamped on protester
Fri, 20 Jul 2018 09:30:00 +0100
France's President Emmanuel Macron is to fire a security adviser who hit and stamped on a May Day protester, the Elysee Palace has said.

Thirteen dead after 'duck boat' sinks in lake
Fri, 20 Jul 2018 04:43:00 +0100
At least 13 people have drowned after an amphibious "duck boat" capsized and sank in stormy weather on a Missouri lake.

Last survivor of Amazonian group filmed after 22 years alone
Fri, 20 Jul 2018 09:01:00 +0100
Extraordinary footage has been released of an indigenous man who has lived alone in the Amazon rainforest for more than two decades.

British rugby players 'took heroin' before deaths
Fri, 20 Jul 2018 14:09:00 +0100
Two British rugby players who died in Sri Lanka after being taken to hospital with breathing difficulties had both taken heroin shortly beforehand, a court heard.



tikatoshop.it

Erfahrungen mit Pallhuber Wein
Agen Bola SBOBET Terpercaya

Travel in comfort and at your leisure with CT Airlink Limousine & Car Service for top quality private transportation and exceptional customer service. We operate Sedans, SUVs & Vans for CT Car Services to covering all Connecticut airports including Car Service from CT to Newark Airport , Mohegan Casino Uncasville CT, Foxwoods Casino Mashantucket CT, Manhattan Cruise Terminal NYC, Brooklyn Cruise Terminal NYC and Bayonne Cruise Terminal NJ. CT Airlink hire licensed and friendly chauffeurs who have in-depth knowledge of the Areas.

Building Your Credit History

Today, credit is an indispensable part of our lives. In... Read More

Using Credit Cards Wisely

"I think money was stolen from my card" or "I... Read More

Bad Debt Recovery

Bad Debt IdentificationIdentifying bad debt is not as easy as... Read More

To Repair Credit Is No longer Satisfactory - Learn How To Earn A Millionaires Credit In 30 Days...

To repair your bad credit does not necessarily mean that... Read More

What is Credit Counselling?

Ever wondered what is Credit Counselling? There are occasions when... Read More

How To Repair Your Credit Report

A credit report is run on a buyer when he... Read More

Credit Scoring: What You Dont Know Can Hurt You

You've probably heard the term credit scoring. You may have... Read More

Addressing Bad Credit Card Debt

Spending HabitsSo you've just got your credit card. The first... Read More

Commercial Collections And Credit Granting

It is estimated that billions of dollars in delinquent commercial... Read More

Learning the Disturbing Facts about Credit Card Debt

When I received my first credit card in the mail... Read More

The FICO Score Misconceptions

There are many misconceptions about credit scores out there. There... Read More

Credit Card Benefits and Drawbacks

Credit cards have both benefits and drawbacks. It is wise... Read More

Rebuild & Keep Good Credit Ratings by Understanding Your Credit Cards

Secured Credit Card is similar to a prepaid credit card... Read More

Is it Safe to Use Online Car Finance?

Online car finance is convenient. You can apply over the... Read More

Improving Your Credit Report

Even if you think you have a wonderful credit report,... Read More

7 Consumer Credit Laws You Should Know if You are Trying to Repair Your Credit

There are seven consumer credit laws you should be aware... Read More

Bad Checks, Bounced Checks, & NSF Checks

Negotiable instruments like checks and drafts have become an indispensable... Read More

Balance Transfers Can Help You Stop Putting Money Down The Drain!

As you probably know, interest rates are at all time... Read More

Some Truth About Credit

Credit is currently and has been historically an integral component... Read More

How To Use Your Credit Card For Ultimate Financial Advantage

Using a credit card wisely is an important step in... Read More

Bailiffs & Council Tax - Knowing What To Do

This article is about bailiffs who may call trying to... Read More

What Is A Credit Report?

Even if you have heard of a credit report, you... Read More

My Student Credit Card Adventure

And some practical advice too!My first credit card?I remember my... Read More

Have You Checked Your Permanent Record Lately?

As a young student I feared getting bad grades because... Read More

A Debt Mentality

While working through my own debt situation, and helping others... Read More