Great new video
February 1, 2010 | alternatives, industry | Comments (3)Credit card cash advances versus payday loans. Check out Check ‘n Go’s latest video here.
Credit card cash advances versus payday loans. Check out Check ‘n Go’s latest video here.
Comments»
I wish someone would explain to me how a credit card cash advance, even with an ATM fee added, can be more expensive than a payday loan. This video doesn’t and when I “do the math” I find the payday loan to be considerably more expensive. That is, unless 1) the cash advance puts you over your credit limit and you get hit with an over-the-limit fee, or 2) you don’t pay the cash advance back for a very long time.
In this time when people are complaining of alleged deceptive practices on the part of lenders, I think this commercial should have made that clearer.
Mr. Schultz,
When a person takes out a credit card cash advance, many times the credit card company required the person has to pay off the entire credit card balance before they are allowed to start paying back the credit card cash advance.
If the consumer carries a balance (nearly 44% of American families carry a balance on their credit cards, according to the “Fact Sheet: Reforms to Protect American Credit Card Holders” released by The White House on May 22, 2009), it could be a while before the credit card balance is paid off. And during this whole time the interest on the credit card cash advance (which is usually a higher rate than the credit card) is increasing the cost of the cash advance.
Mr. Kursman,
Thanks for that info, which I had forgotten. I haven’t taken a cash advance on a credit card for some time.