Don't Be Fooled by Your Credit Card Company (cont.)
Contributed by Devon Mccollum
Your credit card company may not charge you a finance charge on a cash advance, but it won't be free.
Cash advances on credit cards are normally evil in that the customer is charged hefty finance charges on the amount advanced. In fact, customers are usually sorry they received the cash advance when they realize how much they will pay for it.
Occasionally, credit card companies will advertise that there are no finance charges on cash advances. Unsuspecting customers will often take the company up on the offer, thinking there will be no penalty for doing so.
What the company failed to tell the customers as while there are no finance charges, there are transaction fees added in at, on average, 2% of the amount advanced. It is rare that transaction fees end up costing less than $10 for a cash advance.
In short, cash advances are to be used only when in desperate need.
What to do when your credit card company tries to fool you
Consumers have every right to question a charge or change in fees with their credit card company. Do not hesitate to call the toll-free number and request that the fee be subtracted from your statement. If the customer support person refuses to erase the sketchy charge, cancel your account and tell his or her supervisor why you are doing so.
