January 20, 2014
Never use a credit card to access funds from an ATM? Why?
Never use a credit card to access funds from an ATM? Why?
Because when you access funds from an ATM using a credit card, it is called a cash advance and the interest rate on cash advances is OUTRAGEOUS! Also, the interest starts immediately on cash advances!
You hit on all of the key points, Katherine. Well done! Let’s recap.
When you use your credit card in an ATM you will pay a very high price for that convenience.
It will be a cash advance. 20% to 30% in interest is normal.
You will be paying interest immediately. There is no grace period on a cash advance.
NEVER DO IT!