If you need cash, it is important to consider other options before requesting an advance through a credit card, because although credit cards are a financial tool to buy, pay for services and obtain cash You have to be clear about the costs generated by interest.
Before making the decision to make an advance, remember that the interest rates on card advances are usually much higher than the interest rates on personal loans or consumer credit.
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Additionally, advances typically charge a transaction fee, so it’s not a good option to advance with credit cards just because you need more money by the end of the month.
And the idea could be worse if the associated costs are not taken into account.
Only with interest rates that are at 30 percent annually on the money that
If you take out cash you will pay much more than if you applied for a loan.
For example, if you make an advance of $1,000,000, You will pay $300,000 in interest over one year if you don’t pay the balance in full.
Some cards may also have hidden costs such as a monthly fee for maintaining an outstanding balance in advance, there are also transaction fees.
If you need cash, it is important to consider other options before making this decision because many times, since large sums are involved, Users may encounter complications in returning the money, especially if it is not the only expense they have.
To maintain optimal financial health, it is recommended that you keep your debt capacity in mind, do a detailed analysis of the loan conditions and thus avoid falling into debt cycles that could have adverse effects.
Making an informed decision after considering associated costs is a pillar of personal economy that allows you to choose healthier alternatives for your financial stability.
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2023-12-05 01:50:14
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