Cash Advance Loans, APR, & Annual Fees | What to Consider Before Appling for Credit

I know, I know, I can’t live without the plastic either, but…

Credit cards are a very useful and popular financial tool.  Cash advance loans can be, too – if used responsibility.   Maybe too popular as consumer credit spending has become America’s favorite pastime whether we can afford it or not. I won’t give you a bunch of do and don’ts right now about how to carefully and effectively use your credit cards to avoid this cycle of debt, but I will be sure to do so later.

Shopping for Plastic

Oh, curse those fashionable clothes and great deals!

We as consumers are so “plastic crazed”, that I thought I would do a quick article on credit cards themselves.

You see, the credit card industry is so highly competitive for consumers’ business, and we as consumers are so hungry for this plastic money, that much of our credit trouble comes to us before we even make our first purchase, and then we end up having to get cash advance loans to prevent a mountain of interest.

Credit cards as we all know provide us with a revolving loan otherwise known as a credit limit. When applying for a credit card we tend to focus primarily on the credit line or the total cash value that we can charge to the credit card. Unfortunately we must be more diligent with our search criteria because there are a few hidden fees that can cost us a bundle. One in particular will cost us even if we never choose to place a transaction on the card.

Be sure to choose your credit card provider rather than let your card provider choose you. It’s easy to get excited when you get the pre-approved notice in the mail, but this is just a ploy to win your favor by allowing you to think you have been approved so that you walk through the steps of applying.  Don’t do it just yet – you’ll be applying for cash advance loans in no time to pay it off.

When applying for a credit card always be careful to read the terms and conditions of the contract. You may be surprised at what you find there.

Annual Fees

The first thing you should look for is the yearly “Annual Fee” charge. Typically these fees will run from $39 to $99 each year. This is just for having the right to carry the card. Your account balance will begin with the annual fee applied to it for your first year of use.

Remember there are plenty other creditors that would love to have your business, so stay away from those which want to charge you an annual fee.

Interest Rates

You will also want to pay close attention to the interest rates. Interest rates are calculated in terms of APR or Annual Percentage Rates and can vary greatly between providers. The standard interest rates will be around 18 to 24 percent if you’re just beginning to establish credit, and less the longer your relationship with the creditor lasts.

Don’t think however that your creditor will choose to lower your APR by themselves. You may have to call from time to time and make the request. Upon request they will review your account and make a determination.

Cash Advance Loans

The next fee you will want to look for are the cash advance loans fee. This fee refers to the percentage or amount charged to your card whenever you choose to obtain a cash advance from a local ATM machine. This too can vary to some degree and may be of less importance to you if you just tend to charge your purchases straight to the card.

Follow these tips when shopping for your credit card and remember to “spend responsibly”. Credit cards can help you leverage and save your money as well as present you with a host of other benefits such as cash and travel awards, but these benefits are lost if the card is used improperly.

Good Luck! Hope you catch a big limit with small fees.