Fixing your finances in a jiffy might land you on the cash advance online doorstep applying for a short-term loan. At least if you get there and you found a responsible lender, there isn’t much red tape involved in getting one of these low cost loans.

Know cash advance fees and interest rates up front.

The simplicity of online cash advances are welcoming when people are used to the traps and games played by credit card companies. Maybe it has to do with the difference between  short-term and long-term transactions or a difference in the type of money transaction the companies process.

Credit card companies offer revolving credit. The company’s goal is to attract a customer to their business and once an account is open, utilize many opportunities to earn revenue from the consumer. Besides the typical interest rates charged to a credit card account, there are many penalty fees and protective costs to guard your credit. The penalty cost will be charged directly to your account anytime the consumer breaks the payment or usage policies: late fees, over limit fees, raising interest, and user fees (ATM charges).

A cash advance is a one time quick money loan.

If you want more money to use, then the consumer will have to apply for another loan. It helps not to have continuous access at additional money. There will be a charge for the initial loan, then interest charged to the remaining balance after the original due date has gone by. the only other charge which applies to the account is if the debited payment has insufficient fees. This is similar to a bounced check fee.

A credit card company devises plans to sell its consumers. They sound great and are provided at a low monthly cost. The sales pitch makes them sound important enough to spend that little bit each month. The big question is whether or not the plans are truly necessary.

• Credit card insurance is a way to protect the card holder from being responsible for purchases after cards are lost or stolen. Those of us who know better, do not purchase this plan. Put the money you would spend on the monthly cost (about $8.50 per $1000 on balance) into a savings account and know that all credit cards are protected by the government. The most a person will have to spend is the first $50 of unauthorized charges. Often times, if you notice a problem right away and dispute the charge, there will be no additional cost.
• Identity protection is a big seller. This program will pay for lost wages or legal expenses if your card is stolen and your identity is tampered with. The plan does not cover protection for unauthorized charges.  That is already covered by the banking institution which backs the card. Your best bet is to keep track of your cards, keep them safe and monitor your balances often. As soon as you find something not right, call!
• Paying money to get real-time credit report updates is another pitch for a monthly fee. Credit reports do not update so often that a 24/7 monitoring system is needed. Use free credit reports and monitor your own report three times a year.

No sales pitches come with cash advances online.

Don’t waste your money on unnecessary plans. Keep credit card balances low and pay off a low cost cash advance online at the original due date.