The latest news in the faxless cash advance sector shows many credit cards raising their rates on cash advances.
Online PR News – 19-May-2010 – – Credit card companies, feeling the pinch of the ongoing recession, have raised their fees and in some cases, the APR on credit card cash advances. When compared to the overall money paid to secure a faxless cash advance from an online company not tied to a credit card, credit cards offer a bad deal. Latest news reports show an increase from three to five percent in some cases. And that's just the fee. Some credit cards charge a percentage of the cash advance, or $10, whichever is higher.
A faxless cash advance, with average fee of $15 per $100 borrowed, will almost always come out to be a better deal for borrowers. There are a few reasons for this. The credit card company will also start charging the borrower interest on the cash advance, as soon as the money is given. In other words, there is no grace period for credit card cash advances. Consumers are warned not to be fooled when taking out a cash advance on their credit cards: it's not like charging a purchase, where they typically get around 25 days or so before interest charges start accumulating. That means, on top of the $10, a credit card cash advance will also charge interest immediately.
no fax cash advances also compare favorably because they are not tied to the borrower's other credit purchases. A cash advance taken on a credit card will be linked to any other outstanding balances when payments are finally made on the account. So, those interest charges on the cash advance will keep accumulating even if borrowers make payments. That's because credit card companies will apply the payment to the items with lower interest rates. And, as previously discussed, credit card cash advances carry much higher interest rates than normal credit card charges.
Even a no fax payday loan compares much more favorably to the credit card cash advance according to the new reports out this week. The higher APR, lack of grace period, and its position last in line when it comes to receiving payments on the account, make the credit card cash advance a poor choice. The no fax payday loan also has an average fee of $15 per $100 borrowed, and no interest charges will accumulate until the loan period is up, usually two weeks. In other words, borrowers get at least a two-week grace period on this type of loan. Also, even if there is a balance on the borrower's credit card, he or she can pay off the more costly payday loan right away, even if there's not enough money to pay back regular credit card statement.
For more information on faxless cash advances, no fax payday loans, and other emergency cash solutions, consumers can visit www.e-cash-advance.net where they can take advantage of free articles, free online applications for cash advances and great customer service on loans.