How do I stop a cash advance charged interest?

How to Avoid Interest Charges on Cash Advances

Cash advances, a convenient feature offered by credit cards, allow you to withdraw cash from an ATM or bank teller. While they can be helpful in emergencies, cash advances come with a catch: interest starts accumulating immediately. Unlike regular credit card purchases, there is no grace period during which you can avoid interest charges.

Consequences of Not Repaying Cash Advance Balances

• Immediate interest accrual: Interest on cash advances begins accumulating immediately, even if you make regular payments towards your credit card balance.
• Higher interest rates: Cash advances typically carry higher interest rates than regular purchases, making it more expensive to carry a balance.
• Impact on credit score: High balances on your credit card, including cash advances, can negatively impact your credit score.

Steps to Avoid Interest Charges

1. Avoid Cash Advances Whenever Possible:

If possible, find alternative ways to access cash, such as using a debit card or withdrawing funds from your checking account.

2. Repay Balances Promptly:

If you do need to take out a cash advance, repay the balance as quickly as possible to minimize interest charges.

3. Contact Your Credit Card Issuer:

Some credit card issuers may be willing to waive interest charges on cash advances in certain circumstances, such as medical emergencies. It’s worth contacting them to inquire about this possibility.

4. Consider a Balance Transfer:

If you have high-interest cash advance debt, consider transferring the balance to a credit card with a lower interest rate. This can help you save money on interest charges.

5. Make Extra Payments:

Pay more than the minimum payment due each month to reduce your overall balance and avoid interest accrual.

Conclusion

Cash advances can be convenient, but it’s important to be aware of the potential interest charges. By following these steps, you can avoid or minimize the impact of cash advance charges on your finances. If you need assistance or have any questions about cash advances, contact your credit card issuer for guidance.