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Credit cards can either be your best allies or worst foes depending on the amount of information you know about them and your usage. Visa cards not only enable you to pay for your purchases, but also give you the freedom of withdrawing cash in case of emergencies. The latter is termed as a cash advance on the credit cards. Unfortunately, many people are unaware that the cash advances on the credit card will prove to be damaging than using the card for purchases. This is because the interest rates and financial charges applicable on cash advances are much higher than the rates and charges applicable on purchases. It is imperative that you know some basic information about cash advances before you draw cash on your card.

First of all, understand that the fees on cash advances can range anywhere between one percent and four percent. This is significantly higher than the rates levied on the purchases made. Unlike in the case of purchases, banks do not offer any grace period for cash advances. This implies the interest will be calculated on the cash dispensed right from the time you withdraw it from your account. In addition to this, there are a few banks that also levy charges on using their ATM machines to withdraw money from credit cards. All these charges put together are sure to burn a hole in your pocket.

If you still feel you are faced with an emergency and have no option but to withdraw cash, then there are a few points that you need to keep in mind. Read though the terms and conditions on the agreement you signed with the bank and find out the information regarding cash advances on Visa Cards. If you find some information to be ambiguous, then, don`t think twice about calling your bank and getting it clarified.

Consider other alternatives to cash advances such as payday loans which are relatively cheaper. Only in case of emergencies such as unforeseen medical expenses, consider opting for cash on your card. Never overshoot the cash advance limit on your card as this will attract even higher fees and charges. Repay the amount withdrawn as cash at the first available opportunity if you wish to stay away from the debt trap.

Irresistible though it may seem, cash advances as a big no-no if you want a blemish free credit history.