With credit cards, there are several ways you can receive cash advances or withdrawing money from an ATM. There are many ways a credit card can be useful for you and your transactions. Additionally, there are some cards that allow you to get cash advances with extra fees and higher interest. Read below for more information on the options credit cards have to offer.
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Cash Advances
Whenever you use your credit card, it technically acts like a loan when you make a transaction on it. In other words, with your credit card, any purchases you put on your card, you will need to pay back. Additionally, when you get a cash advance, this just takes away the transaction. You’ll be receiving cash instead.
However, depending on the credit card company you’re with, one of the ways to get a cash advance can be through an ATM or check. You’ll be able to use a PIN number for your credit card these ways for you to receive a cash advance. Plus, with the Discover “cash over your purchases” perk can be used at specific stores. In other words, you can get cash from this store when you use your card for a transaction.
Pros & Cons of a Cash Advance
There are several advantages that comes with making cash advances with your credit card. However, keep in mind that getting a cash advance should be considered your last option. It will have a higher APR when you compare it to other transactions. Additionally, there are extra fees that come with these advances as well.
These advances can be beneficial if you don’t have enough cash to pay your bills at that moment. Keep in mind that you should budget and plan out how much you need and how much you’re able to pay back with them.
Using Your Credit Card for Rent
You can use your credit card to pay your rent. However, this isn’t a common way to pay your bills on your household. It can be more difficult whenever you use your credit card to pay rent. Keep in mind that there are several landlords that will not take credit card payments on your bills. Additionally, when you pay rent this way, it may come with extra charges and fees.
Using your credit card for rent, there are several ways you’ll be able to do so. For example, you can get a balance transfer. A balance transfer is for people that have too much to pay for with not enough money. Even though this isn’t a direct way to pay your rent, you’ll be able to put some of the charges onto your credit card.
Advantages & Disadvantages of Paying with Credit Cards
Some pros that comes with using your credit card to pay your rent are earning rewards and it’s convenient. Some credit card companies will offer you great rewards programs when you use your credit card to pay your rent. It will increase your earnings and receive bonuses as well. Additionally, many credit cards will guarantee your safety with their encryptions and advanced security measures.
The disadvantages that comes with this is that there is a chance of you paying higher fees. This means you’ll be paying more than you normally would if you use your card this way. Furthermore, it can leave a bad impression on your credit history and result to low card limits. Plus, your interest rates will increase and can build up on you pretty quickly.
Conclusion
Overall, you can use your credit card to pay your rent. However, be aware that there are several other options you can consider before using your credit card for this purpose. Other alternatives you can look into are: wire transfers, using a debit card, paper checks, or paying in cash.
With that said, if none of those options work out for you, it’s not a bad thing to use your credit card to pay your rent. There are several advantages and disadvantages that comes with this as well.
