Don't Be Talked Into Taking Out Cash on Your Credit Card

We all know that over recent months it has become more and more difficult to get any sort of finance, and with so many households feeling the pinch due to increased costs it seems that there could not be a worse time for credit conditions to become as tight as they have. However, since the onset of the global credit crunch lenders have really reined in on their lending, and have made it increasingly difficult for consumers to get finance such as loans and mortgages.

Many households are suffering at the moment due to increased borrowing costs, increases in bills such as energy bills, council tax, and water, and higher living costs including petrol and food, the prices of which have really soared. Because of this many people are finding that they have little or no disposable income each month. According to credit card guides this is something that a number of credit card firms have been playing on, with some trying to entice consumers to get their hands on 'instant cash' by taking money out on their cards.

What's more in order to plant the idea into customers' heads and to make the process easier some credit cards firms have been sending out mailings to customers outlining the benefits of being able to get instant cash to spend on anything - and have even raised the withdrawal limits so that consumers are able to get their hands on more money. Of course, the one thing that these firms don't make a big deal about is the fact that taking out this money is going to cost you a pretty penny.

No matter how tempting it may feel to grab your card, head to the nearest cash machine, and withdraw a wad of cash to blow on an array of luxuries you need to bear in mind that this is something that is really going to cost you. With most credit cards you will be charged a hefty cash advance fee, so even if you repay your balance in full each month you will still be hit by these fees. If you do not repay your balance in full then you will also have to pay costly interest charge on your withdrawal, making it even more expensive.

At the end of the day there is little point in withdrawing cash from the machine with your credit card when you can just as easily use your card to make any necessary purchases, thus avoiding the cash advance fees that will otherwise be applied. So, if you find yourself being encouraged to take out cash from the machine by your credit card company make sure that you think twice and consider whether you really need to take out cash, as otherwise you could find yourself wasting a small fortune on expensive fees and charges.

You should compare credit cards to make sure you have the best card for your needs, either by comparing low interest rate credit cards for purchases or if you really do need to withdraw cash on your card you should compare low cash advance rate credit cards to find the card offering the cheapest cash rates and fees.

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