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.


Looking at How a Secured Credit Card Works

Secured credit cards are credit cards wherein, to obtain one you need to deposit cash as collateral. This collateral becomes the line of credit for your account. If you deposit $600 in your account, your credit limit is also $600 that means whatever amount you deposit in the account becomes your credit limit. By depositing more money in account and making payments on time, the bank will increase your credit or reward you for timely payments.

Advantage of secured credit cards is that, it offers an opportunity to people with little less than ideal credit, poor credit as well as bad credit, to improve their credit score and still enjoy the benefits of full-fledged credit cards. So, make sure to choose the secured credit card companies that report your credit report to credit bureaus.

Secured credit cards improve your credit by sending your account report to credit bureaus, thereby helping you to fix up your credit. If you make the credit payments on time, the companies will eventually turn your secured credit cards into unsecured credit cards, so that you soon start enjoying the maximum benefits.

Costs, Eligibility Requirements and APR:

When you apply for secured credit cards, you need to pay some common fees as in other credit cards such as application fees, annual fees as well as processing fees. However, you need to consider the credit card company for which you are applying, since different firms charge different fees. Do not apply for secured credit cards from companies that charge fees because most of the security deposit goes in fees.

To apply for secured credit cards, you need to furnish basic documents such as address proof, SSN (social security number), income proof, and age proof (minimum 18 years of age) and so on. Some companies, which provide such services, require that individuals open an account with them before applying for secured cards.

Credit card companies do not charge with APR (Annual Percentage Rate) on the sum you deposit. Therefore, you can deposit the paycheck directly in the account. Normal credit card companies charge with late fees, finance charges and high interest rates if you default your payments. However, in case of secured credit cards, companies deduct the credit amount from the deposit.

Improving the Credit Score:

Check the credit report by obtaining a copy from all the three credit report bureaus at least once in a year. Sometimes, credit reports have some mistakes such as the statement of loan, which you had already paid off. Such instances hamper your credit ratings.

This is particularly crucial when you apply for the loan amount. Most lenders do not approve the loan amount if a credit report states debt. It usually takes up to 3 months for a change to appear in your credit report. Hence, it is important to check your credit report before applying for loan and accordingly inform the bureaus so that they take immediate action.

Do not use secured credit cards or other cards for every purpose, maintain decent amounts in the bank account and pay all the due bills on time.


How Does a Cash Back Credit Card Work?

The popularity of cash back credit cards is increasing with every progressive day. Unlike other credit cards, cash back credit cards help you receive some cash back after making every purchase. Therefore, if you wish to apply for such credit cards or own one, you are sure to gain by reading further.

The working of cash back credit cards depends on the type of cards you are applying. Few credit cards give back more amount of money for purchase of particular items. For instance, some credit cards may give you more amounts of cash on gasoline or grocery purchases. Therefore, you have to decide as to which type of cash back credit card you want. If you are a frequent flier, then you need to consider buying airline credit cards because the more often you use these cards, the more cash or free tickets you get.


The terms, policies and conditions of cash back credit cards vary from one company to another. However, the process of earning points or rewards is nearly the same. Usually, credit card holders receive one point on every single dollar, which they use to make purchases. Some companies offer two points for every two dollars. These points are later converted into cash, so the name cash back credit cards.

Companies may give cash back from one percent to twenty percent and it depends on the amount of purchase. Therefore, if you are applying for cash back credit cards, you need to read the fine print very carefully and understand the working of your reward system, before you use these cards.

If you are using airline cash back credit cards and you buy tickets worth $800, then the card companies may give you four tickets free. Every ticket is for $400, although this rule is not applicable for all companies. This is just a general idea about how the cash back credit system works. Most of the companies will offer reward points.

Once you have the reward points, you may want to know about what to do with these points. Well, you may use these points to buy some new products or even pay bills. While some card companies require that you use the reward points to buy products from certain selected stores, others provide flexibility to shop from any store.

Few cash back credit card companies impose a limit of cash points. After reaching the speculated limit, the person does not qualify for more reward points. However, ideal cash back firms do not impose such limits.

Using such cash back credit cards, you can earn desirable number of points until you are an active member of that firm.


Cash back credit card firms are all striving for attention to get more customers. Some of them are worth while some do not deserve the trust. Therefore, you need to be cautious enough while applying for cash back credit cards.

Cash back credit cards give rewards religiously if one makes the points on time. So, make sure to clear off all the balance every month, to obtain the rewards.


Credit Card - Best Place to Apply

A credit card is a plastic card that when issued allows the user to make charges on an account. This account then becomes a debt that the person holding the card is responsible for paying. Most commonly people will apply for credit cards and depending on what your credit score or rating is you will be approved or declined. If you are approved then there is a limit that is set on your card which is the amount they are loaning you. If you go over this limit there is usually a penalty that you will have to pay.

Some people get a credit card and a debit card confused because they look similar. A debit card however is attached directly to your bank account and when you make a purchase using it then you are deducted that amount directly form your bank account.

Basically a credit card allows you to carry a balance every month. There is an interest rate that is attached to the card and this is the annual amount you will be charged on the balance that your credit card has on it. It is important to know that you should look for the best rate you can when applying for a credit card because it can save you a lot of money.

It is also important to understand that you should always make timely payments on your credit card because when you are late or miss payments then the credit card issuer will raise the interest rate to the maximum amount and that is usually between 25 to 30%.

Every month the credit card holder will get a statement that will show the charges that were made during the previous month and what interest rate is being charged. It is very important that you check and make sure that the charges that are on your statement are your and that everything is accurate as far as the rate of interest you are being charged.

A credit card can be a great way to give you some flexibility every month when it comes to buying things you want before you get paid. Try to always stay within your limits of what you can afford because getting into credit card debt beyond what you can afford can cause you great problems with your credit score.