Don't borrow cash from credit cards
Popping your credit card into an ATM is an incredibly expensive way to get money.
It's not like taking cash out of your checking account with a debit card.
When you obtain cash with credit cards you're taking out loans.
It's actually cheaper to charge purchases than buy anything with a cash advance because of:
- Hefty transaction fees -- usually 2% to 4% of the amount with a minimum fee of $10 or $20.
- Higher interest rates -- 20% to 25% a year for cards that charge 15% to 17% for purchases.
- No grace period -- interest charges always begin as soon as a cash advance is made.
- Policies that require cardholders to pay off all purchases, even new ones, before paying off cash advances.
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