Request advances with the credit card? 4 key points to know about it
When looking for cash, many believe that credit cards can get them out of that trouble. How? Through the option of advances. And it is a simple mechanic, because through an ATM or approaching the bank agency, you can request that option and get the cash you need to cover any emergency or any other expense.
However, progress is the least recommended option by experts when looking for cash. Do not be confused, they may seem easy to obtain, but the consequences are more complicated than they seem. Do you know why? We leave four important points:
It is more expensive than asking for a loan
The interest rate for this type of products is the highest and even, they also charge you commission for the use of the cashier or for having the quota of the advance. So, he is not only paying the money, plus interest, but also for requesting the advance per se. Given this situation, a free investment loan can be much cheaper and even a quick loan.
There is a limit on the money to be withdrawn per day
The banks establish a daily limit of the money that can be withdrawn from the card, and each time they do so they will charge the quota, leaving more and more expensive.
Some banks assign a number of fees automatically
Depending on the bank, advances are assigned a certain number of installments. For example, Bancolombia automatically divides it into 18 installments if it is requested by cashier or online, while, if you do it physically, you can choose between one and 36 installments. The more installments, the more interest, and you pay it the following month, you will still be charged the interest generated up to that day, unlike credit card purchases.
You can request it outside the country
You can also request it when you are out of Colombia, but the exchange rate with the currency in the place you are in can play against you and make it even more expensive.
In many banks, one of the requirements to obtain it is that the card is free of arrears and debts. In any case, it is recommended that you think three, four and up to five times before requesting them, because even in an emergency, they are not recommended.