subject: Cash Advance Credit Card With No Fee And No Interest Rate [print this page] A no fee cash advance credit card allows individuals to withdraw cash that is added to their credit card balances without charging any additional fees. Some credit card companies allow cash advance cards to be used like an ATM or debit card: individuals simply obtain cash from an ATM or a store that allows cash back with purchases. Other companies may provide checks separate from an individuals regular checking account or require cardholders to apply in person at a bank to receive large sums of cash.
While a no fee cash advance credit card can be helpful in financial emergencies, there are some disadvantages to using them. Even without additional fees, interest rates for cash advances are typically much higher than traditional credit purchases. Interest begins accumulating immediately; therefore there is no grace period in which to pay off an advance. When a cardholder does pay his or her monthly bill, credit card companies tend to put that money towards regular purchases and not cash advances. This method can greatly increase an individuals monthly payments and interest rates.
Its also very hard to find a no fee cash advance credit card. Some credit card companies may only offer no fees for the first year that an individual uses the card. Also keep in mind that cash advance credit cards can cause much more damage than a regular card if it is stolen. Although many credit card companies will more than likely resolve any issues of credit card theft, it can cause a great deal of hardship for the owner of the card.
Individuals searching for no interest rate are typically referring to a no interest rate loan, which is usually only available to applicants with excellent credit histories. These loans may also be available to individuals with good credit who need small amounts of money.
Many lenders provide no interest rates loans. The application process is very similar to the application process of traditional interest rate loans. Lenders will require applicants to supply personal and business financial documents, a written business plan, and credit reports from each business owner. Lenders carefully analyze the information in these documents to access an applicants risk. High-risk borrowers have poor credit histories, and they are more likely to not receive a no interest rate loan. The approval process for these loans can take longer than regular loans, because the lender must ensure the applicant is able to repay any funds borrowed. Repayment options vary by lender, but most offer monthly plans to be paid over a period of years. Some lenders may provide a balloon payment option, in which the borrower makes small payments over a period of time, and then pays the rest of the funds off at one time. This option is only recommended to borrowers who are absolutely sure they will be able to pay off such a large sum at once.
A common no interest rate loan is provided by car dealerships. However, if a borrower accepts one of these loans for a car, he or she usually forfeits any rebate offered by the car dealership or manufacturer.
by: Sadie Hurst
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