Tag Archives: credit card

Everything You Need to Know about Credit Card Cash Advances

Credit card cash advances are amounts of money which people are permitted to “borrow” from their credit card companies. These advances are generally processed via ATM withdrawals or deposited checks. Unlike other types of loans, credit card cash advances almost always come along with hefty interest rates, usually notably higher than the interest rate of the associated credit card. Furthermore, the interest tied to credit card cash advances generally begins on the day one borrows the funds.

There are a variety of reasons why an individual may consider taking out a credit card cash advances. In most scenarios, doing so is ill-advised, but regardless of the decision which one ultimately makes, having an awareness of the following information is paramount.

There are Many Strings Attached

One of the massive pitfalls of credit card cash advances is the plethora of attached strings. As previously stated, credit card cash advances generally come along with sky-high and immediate interest rates. ATM fees are also part of the deal, as are payment allocation rules. Of course, certain logistics will vary depending upon the bank/credit union and their rules regarding credit card cash advances.

At the end of the day, credit card cash advances are not truly worth it. The amount of money will which be paid in combined interest and fees will undoubtedly surpass the amount of originally borrowed funds. In essence, someone who takes out a $500 cash advance may wind up paying $1000 (or more!) by the time they’ve covered all of the subsequent monetary charges.

You Could Have Deeper Financial Issues

In light of the multiple expenses associated with credit card cash advances, resorting to taking one out could be indicative of deeper financial issues. In most cases, individuals who take out cash advances do so because they need cash, yet have no other way of getting it. Even in today’s world, there are still certain situations where merchants may not accept credit or debit cards as payments. Unfortunately, there are other people who resort to cash advances for unwise purposes, such as gambling.

How to Steer Clear of Credit Card Cash Advances

It goes without saying that the pitfalls of credit card cash advances vastly outweigh the upsides. For this reason, people should employ the proper financial strategies so they are never completely unable to access cash if they truly need it. Thankfully, there are several ways of going about this. The first and most obvious strategy involves saving money. The amount of money which can be saved will greatly depend upon the amount of one’s income and their expenses. Ideally, the former should always outweigh the latter. This, in turn, allows for people to gradually build an emergency fund to be used in times of need.

If someone’s expenses outweigh their income, then the person has a few options: increase income, decrease expenses, or both. Income can be increased by seeking a raise, requesting additional working hours, or pursuing economic ventures outside of one’s day job (such as freelance work). Decreasing expenses is viable by simply reducing the money which is being spent. Most people do this by going out less often, canceling monthly subscriptions, and shopping with coupons. This may not seem glamorous, but it certainly beats having to take out a credit card cash advance due to a lack of funds.

Finally, the best way to avoid credit card cash advances is by always having some cash on hand. This could mean storing a few hundred dollars in a safe or keeping some bills in a wallet. Regardless of the financial means one takes to save money and maintain readily available cash, just about anything is better than taking out a credit card cash advance.

 

Authored by Gabrielle Renee Seunagal

4 Reasons Why Good Credit Really Does Matter

Good credit really does matter, whether Canadians (or anyone) like it or not. It’s imperative to try and keep your credit report clean and maintain a decent score. It impacts everything in life. While it is quite understandable to be knocked around every once in awhile, the goal should be to get back on track as soon as possible. You want to do your very best to save money, invest money and manage your money to build a grand net worth for the future!

Financial experts within the personal finance realm constantly hear about the importance of credit scores throughout the world. But, while it isn’t as important everywhere, you have to be worried about where you reside! You have to pay attention to your portfolio, your identity and your personal finances with a keen eye–that is if you’re going to get to where you want to be financially. Good credit can help you out in a variety of situations, just like bad credit can be morbid for your life. Once again, whether you like it or not–the totality is that your credit score can clearly impact your overall quality of life.

Good Credit Can Ensure You Achieve Goals In Life

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A couple smiling at the camera while holding a document

Below we are going to share 4 critical areas where having a good credit score can help you achieve your goals. This can be anything from having the ability to acquire pet insurance, to being approved for a Credit Union checking account and more.

Your credit score can hinder your job search

It really is sad that a credit score can keep you from the job of your dreams, but unfortunately, it can. If you are a financial accountant, or you work in a bank–your credit can cost you your job, or prevent you from ever landing one. While it just feels wrong that hiring managers look at this aspect of your life, it happens every day. It is just one reason why your credit is so very important. You might have the best skills for a position, and the experience to validate yourself as the ideal candidate, but your money management skills might turn out to be your worst enemy. You can enroll in financial counseling services to turn this around, and doing so can go in your favor too.

When you want to start a business

This one makes sense because you need revenue to begin a business. For most people, they need to try and gain investors, but investors are going to want to know how well you handle your finances and what equity you’re putting into a start-up yourself. In fact, if you go the traditional route for revenue, financial institutions are going to scrutinize every area of your finances. So, you have to stay on your toes with this one unless you have rich friends willing to help. Another shot would be to go through kick-starter, but credit is a huge piece of criteria here.

Making a move and getting utilities turned on without a deposit

Your credit impacts your ability to get your utilities turned on in an affordable way. No one wants to spend a lot of money relocating only to find they have to shell out $300 for an electric deposit, or $150 for their water to be turned on. That is just awful, especially when most have to put up a sizable amount to move to a new place. This is why credit scores are so important to manage on a more domestic level. You want to be able to provide housing to your family, but not break the bank doing so.

Applying for financing for jewelry or other high end items 

If you’re hoping to finance a wedding ring, or engagement ring–or any kind of item such as this, poor credit can have jewelers turning you down everywhere you go. It can be disappointing, but it isn’t the end of the world either. Until you can build up your credit and acquire good standing again you simply have to save to pay for an item like this. Financial experts claim paying cash for these items is smarter than having payments for a few years.

 

 

How Can You Change That Low Credit Score?

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Low credit score–you had no idea! How did it happen without you even being aware? Look, if you don’t pay attention to your financial habits and work to keep your credit rating healthy, it will drop, and you won’t be alerted about that either. It’s murky waters out there, but you can keep from drowning. Too many Canadians are hit hard with a poor credit score they had no idea about. The sad news is that bad choices from the past can come back and haunt you, ruining what was a great score before you ever realize what is happening. The tips below can help you avoid financial mistakes and help you to get your credit score back up where you need it to be!

 Let’s Get Started Getting That Credit Score In Shape

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So, the first step to take is to become more proactive with your finances and your credit.  Understanding how to keep track of data like this can help you catch a suspicious transaction that has the potential of destroying your credit too.

  1.   If you carry a high balance on your credit card every month (even if you pay it off) it goes against you. This makes it appear you rely on your credit card to survive month to month. Some have the idea that this builds credit, as long as there is a 0 balance carried over. It’s simply not true. Don’t exceed 40% of your available credit.
  2. One of the biggest mistakes an individual can make is applying for too many credit cards. Every time you apply for a credit card you have the potential of denting your score. This makes you look needy and might steer good creditors away.
  3. Sadly, some Canadians can find their accounts sent to collections without ever having any idea of it. Those accounts which are more prone to this happening are medical. It might not seem fair, but it happens almost daily. Much of this falls onto the fault of insurance companies not paying claims on time. However, consumers are the ones who suffer financially.
  4. You need to consistently check for errors on your credit report, because they do happen. If you find something that is concerning, or which you know is not accurate then you should make the proper contact so that the issue can be resolved and your credit can be repaired.

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Just these 4 simple practices can help to make a difference in your financial habits and certainly your credit rating. We all make mistakes, it’s natural. It’s how you approach your mistakes that change your life. Start building a good, solid credit history today and pay attention to your own financial habits as well. Slowly but surely you’ll see that score begin to rise!