Credit Card Loans
You can get credit card loans by withdrawing cash from your card. Cardholders should be able to withdraw the cash from any ATM. Where you would be able to get money from your bank account. You will repay this loan by continuing to pay your credit card bills as the money that you have borrowed will be taken into account when you are making your monthly payment. Read More >>
What Are The Advantages Of Credit Card Loans?
As you already have your credit card then there is no need to make another application for this type of loan. In most cases you can simply withdraw the money that you need whenever you want it.
As long as you make at least the minimum payment, you can be flexible when it comes to credit card payments. You can pay more off the balance when you have a bit of extra money and less when things are a bit tight. You should remember though that the quicker you can pay off the loan, the less interest you will pay.
Being able to withdraw cash from your credit card gives you more flexibility in terms of how the money is spent. You could use it somewhere that does not take card payments or pay it into your bank account.
What Do You Need To Be Aware Of?
Withdrawing cash from your credit card may involve a fee that is a percentage of the amount that you have withdrawn. You are also likely to be charged a higher rate of interest on cash withdrawals. For this reason other types of personal loan may be a better choice than getting credit card loans. Even with bad credit you have options.
Withdrawing cash from your credit card may also have a negative impact on your credit rating. Other lenders will be able to see how much money you have withdrawn as cash and some of them may see this as a warning sign. They may be wary that you are unable to meet your normal financial obligations and are having to rely on your credit card to get you through.
How To Apply For Credit Card Loans
As you should already have a credit card. You to be able to withdraw cash from, a normal application is not needed. However, there are some things that you might want to check with the lender.
Some lenders will restrict the amount that you can withdraw from your credit card as cash. Therefore the amount of credit that you have left on your account may be more than the amount that you can actually withdraw. It may be worth checking how much you can withdraw as cash so you are not disappointed.
High Interest Repayments
As interest on cash withdrawals may be higher. It is also worth trying to work out a repayment plan that will get the amount you have borrowed paid off as soon as possible. This is not necessarily something that you will have to discuss with your lender. However it is something worth thinking about. If you had a loan from elsewhere then you would have an extra payment to make each month. If you were to pay this amount onto your credit card then you can pay the loan off quicker. Thus reducing the amount of interest that you pay.
There is another thing that you may want to check with the lender. That is the method that your credit card balances will be paid back. Also if you have a different rate for cash withdrawals. Some lenders will use the repayments that you make to pay off the balance with the lowest interest rate first. This will usually be the normal purchases that you have made on your card. This will mean that you have to repay all the other spending on the card. Before your repayments begin to affect the money you have withdrawn as cash. It is worth remembering that not all lenders do this. Many will use your repayment to pay off the balance with the highest interest first. If you are unsure of your own lenders policy then you may want to check with them before making any withdrawal.