Credit card companies and banks are betting on the fact that many customers at some point will need a little extra hard cash that they might not have on hand.

How Comes Instant Cash?

Cash does not come free from credit card companies or from lenders. In fact you will most likely pay dearly, ironically, for the need of real money. But should you need a cash advance, your credit card company, especially makes it particularly easy and convenient to manage. You can take a cash advance right out of your ATM with your credit card. Typically there is a cap on this, but it is often a few hundred dollars, at least. Or, your card company often includes a handful of blank, or “convenience” checks for you in your monthly credit card statement. These, as they suggest, can be used for purchases or to get cash. How handy is that?

The Cost of Cash Advances

Be wary the cash advance. Most financial experts suggest cash advances are the worst thing you could possibly do with your credit card. Most consumers fail to realize that a cash advance taken on their card automatically is subject to a much different interest rate than their typical purchases. You should know the APR on cash advances when you apply for your card if you even think you might use the option, ever. Always read the company’s credit disclosures. Cash advances often come bundled with fees and shocking interest rates that will pack a wallop when it comes to your account’s bottom line.

ATM’s Are Cash Advances

Do not be duped into thinking that most ATM machines are there for your convenience. In fact, most of the time, consumers end up using machines that are not those owned by their home bank, resulting in significant ATM fees on both ends. The institution whose machine you used stands to make a couple of bucks, at least, from you and then your lender charges you for the transaction, too. If you withdraw only twenty dollars and end up paying an extra four dollars in fees, that is quite a tidy little price gouging for a bit of up front cash that, after all, belongs to you.