What Is The Best Way To Repay The Money I Have Transferred From My Credit Card
You can repay more than the minimum monthly repayment each month if you want to clear the balance more quickly.
It is worth aiming to pay off the total debt within the 0% interest period, as money transfer credit cards usually revert to relatively high-interest rates after the introductory 0% period ends.
For example, you might be paying an interest rate of 23% on the outstanding credit balance on your credit card once the 0% period has ended.
For this reason it is important to have a plan to ensure you have paid off the money before the end of the interest free term.
Use A Debit Card Instead
You should first assess whether you have the money available to simply withdraw it from your bank account via debit transaction, rather than taking out what amounts to a high-interest loan.
If you have money in your bank account, avoid getting cash with a credit card. Using your debit card to withdraw money directly from your account is a smarter choice.
Even if you need money immediately, and an in-network ATM isnt nearby, it is wiser to use a debit card at an out-of-network ATM than take a cash advance on a credit card.
Although the debit transaction could cost up to $5, credit card cash advances cost up to 8% of the cash amount and may come with an additional fee of $5 or $10. Whats worse, youll end up spending even more if you go into credit card debt.
Foreign Currency Conversion Charges
Financial institutions calculate foreign currency charges in different ways. Some transactions are converted directly into Canadian dollars. Others may be first converted to U.S. dollars and then to Canadian dollars. The foreign currency conversion charge is applied after the purchase is converted to Canadian dollars.
Example: Foreign currency conversion charge calculation
Suppose you made a 1,000 purchase with your credit card. The exchange rate is 1.42 to convert euros directly to Canadian dollars. Your credit card agreement shows a conversion charge of 2.5%.
After your financial institution converts your 1,000 purchase to Canadian dollars, it will cost $1,420. The 2.5% foreign currency conversion charge is applied to the $1,420 for a fee of $35.50. The total amount of your purchase is $1,455.50 in Canadian dollars.
Read the terms of your credit card agreement for the total foreign currency conversion charge. Ask your financial institution about anything you dont understand.
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Is It A Good Idea To Transfer Money From A Credit Card
The short answer is no, it’s not a good idea to transfer money from a credit card to your bank account. It’s always a better option to use income or savings when possible to avoid going into debt. If it’s an unavoidable emergency and you must take on debt, consider other options that carry lower interest first. This could mean a low interest personal loan, home equity line of credit or a new credit card with a 0% interest introductory offer. Or you could even try to borrow the money from a friend or family member.
They might not be as bad as payday loans, but cash advances should never be the first option you consider for fast cash. For one, the interest rate on a cash advance is typically very high, so if it will take you some time to repay it, you’ll pay a pretty penny in fees for this privilege. The interest rate on a cash advance is typically higher than the purchase APR on a credit card. But with a credit card purchase, you’ll at least have a grace period of no interest for a few weeks, so a purchase will carry no interest if it is paid off fast enough. Cash advances have no grace period, so the interest starts accruing as soon as you take the cash out.
Then there are the fees. Most credit cards carry a cash advance fee, which will be either a small flat fee or percentage of the advance amount, with the majority of card issuers charging a 5% fee for every cash advance. If you’re taking out large amounts, that can add up fast.
So When Can You Take Cash From Other People As Payments
If you have roommates, you can take their share of the rent on theircredit cards. Or if anyone owes you money, they can pay you by using theircredit card. If you are starting a business you can take credit cards aspayment.
It all goes into your bank account as cash, minus the processing fee.
All you need is a card reader and a credit card processor. The cardreader goes on your cell phone so you can take payments anywhere. The moneywill be in your account within a few days! Some of the top credit cardprocessors are Square, Payment Cloud, Leaders Merchant Services, and Flagship.
Many of these processors do not run a credit check or require you to havea business checking account. Some specialize in high-risk businesses or peoplewith bad credit.
This is another way to turn credit card into cash you may not even haveconsidered.
How Do I Get Cash From My Credit Card
Getting cash from your credit card is called a cash advance. A cash advance borrows money from your credit card account instead of using the credit to buy something. This option can be helpful if you find yourself in an emergency and need cash.
A Federal Reserve study in 2017 stated that 44% of adults could not cover an emergency expense costing $400, or would cover it by selling something or borrowing money. This is an improvement from the 50% of adults who weren’t ready for emergency costs when asked in 2013. If at all possible, it’s critical to have emergency cash on hand for when life delivers an unexpected situation.
What Are Some Alternatives To A Cash Advance
There are plenty of other ways to get fast cash. Here are some examples that may be more relevant to you:
Promotional offers from your card’s issuer: In recent years, some , including the option to turn your available credit into an installment loan without requiring a new loan application. You’re still charged interest when you use this option, but you’ll possibly get a more reasonable rate.
An overdraft on your checking account: It may cost $25 to $35 if your account balance goes negative but youve authorized the bank to allow the withdrawal anyway. You can opt out of this, of course, but it is an option for short-term funds. Be careful, though some banks also charge extended overdraft fees.
An early withdrawal from a certificate of deposit : This is another option if you need money right away. However, CDs are meant for long-term deposits, so you might face early withdrawal penalties or have your CD canceled.
A personal loan:This alternative is typically more involved than the other options, as it involves you going to a bank and applying for the loan. Interest rates on 24-month personal loans are lower than that on most credit cards, but the rates on short-term loans from payday lenders are often much higher.
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Sell Your Visa Gift Card Through An App
Another option is to sell your Visa gift card on various apps that will buy it from you in order to resell it.
While this can be a quick way to convert your Visa gift cards to cash, the fees are really steep so this should probably only be your last option if the others arent possible for some reason.
For example, Raise has an app that does this for both iOS and Android, although theyll take 15% commission for doing this. Ouch.
A similar one is Prepaid2Cash, another site that has an app for iOS and Android in order to trade in your Visa gift cards for cash. This one works slightly differently, in that:
- First you tell them the brand of the gift card
- They then send you an offer through the app for the card
- You have no obligation to accept this offer but once you do, theyll deposit it into your account in up to five business days
This means that the fees they charge are incorporated into the offer, so its not entirely transparent. They state, however, that the offer will be up to 92% of the card balance, meaning the fees are at least 8%.
How To Get Cash From A Gift Card
Gift cards have been the preferred present or gift of choice for nearly every occasion, including holidays, birthdays, Valentines Day and you get the point.
Gift cards seem to be the king of gifts when you dont know what to get that special someone.
But what if you dont get the right gift card?
That money shouldnt have to go to waste now, should it?
What if I were to tell you that you could get cash off of that gift card? Dont worry, this is perfectly legal and rather simple.
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Here Are The Best Ways To Withdraw Cash:
If you need a way to access cash on a regular basis, its best to look for a cheaper, more sustainable alternative. Two options in particular are good for the job, though each will usually require a PIN of its own.
For example, you could just get cash with a debit card. You wont be able to borrow money with a debit card, but it would enable you to make purchases from cash-only merchants. Just go to an ATM or make a small purchase at a store and select the cash back option.
Using a prepaid card is another possibility. A prepaid card is like a checking account with a debit card, minus the checkbook. You can use it to make purchases directly or to withdraw cash from ATMs. But it only allows you to use your own money and doesnt help you build credit.
Can You Take Money Off A Gift Card
Sadly, probably not. You cant simply take a gift card to an ATM machine and get cash immediately.
Why? Just for the simple fact that it is a gift card. However, there are plenty of options that you can do to get money in exchange for the value of the gift card.
You can likely get money off of a reloadable prepaid card. But thats not the question. We are talking about gift cards. Based on our research, the best option to get cash in exchange for a gift card is to simply sell it for a discount instead.
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Why Learning How To Turn Credit Into Cash Is So Crucial
When youstart a business or invest in real estate, you will need a loan for yourstartup costs. However, you will have to supply a bank with a verifiable sourceof income and your tax returns. Or, you can take out a second mortgage or get acar loan. No one wants to do that.
Lets faceit. What you really need is unsecured credit. And the easiest way to get thatis by liquidating credit cards.
How To Cash Out Your Online Casino Winnings In 2021
So, you’re all ready to enjoy your winnings now you just have to getthe money out of the casino and into your account! Every online casino hasdifferent policies, procedures, and expectations. But the reality is that, interms of what you really have to do, most are nearly identical. Let us show youhow easy it is for Canadian players to cash their winnings out, which fastcash out options you should use, and even learn about the tax situation forgamblers.
Watch this 60-second video to find out how to cash out at anonline casino.
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You Should Avoid Credit Card Cash Advances But
As highlighted above, there are plenty of cons to using a credit card cash advance and they should be avoided as much as possible. That said, cash advances offer a fast and easy way to access paper money without additional paperwork, no additional qualification requirements, and without having to leverage any of your assets. In cases of extreme emergencies where you have no alternatives and have a plan to pay back what you withdrew, a cash advance may be an option.
If youre going to get a credit card cash advance, its best not to use a typical rewards credit card but a low interest credit card with a low cash advance rate. While most rewards cards charge upwards of 24.99% on cash advances, some of the best low interest credit cards in Canada charge considerably more affordable rates.
BMO® Preferred Rate MasterCard®
Welcome Offer: Get a 3.99% introductory interest rate on Balance Transfers for 9 months with a 1% transfer fee and we’ll waive the $20 annual fee for the first year*
go to site
- Annual fee: $20
- Low interest rate of 12.99% on cash advances, purchases and balance transfers
- Zero dollar liability, plus free purchase protection and extended warranty
Scotiabank Value Visa
There are a handful of other low interest cards like the National Bank Syncro Mastercard and Desjardins Classic Visa that do offer cash advances annual interest rates of 12.99% versus the status quo of 22.9%-24.99%.
Buy Something With Your Card Then Sell It For More
If youre willing to shop around, you may be able to use discounts, sales, or credit card rewards to purchase items at below-market prices. Then you can sell those items online or to a friend at a higher price. The profit may give you the cash you need, plus a little extra to cover your interest charges if you need some time to pay off the credit card balance. Of course, theres a chance you wont be able to make a profit or sell the item at all.
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What To Do Instead Of Using Cash Advances
Read your terms and conditions carefully to ensure youre aware of the fees, interest rates, how payments work, and any penalties involved with using your credit card for cash advances.
However, to avoid using cash advances try these options instead:
Determine If You Really Need the Money
Once youre aware of how much it will cost to take a credit card cash advance, determine if you really need the money, if you can make do without, or if you can manage with a smaller amount. Let your budget be your guide, not only to determine if you need the money, but how you will manage repayment.
A Private Loan from Family or Close Friends
If your parents, grandparents, or other close family member or friend has the means to lend you money, working with them to draw up a private loan and concrete repayment plan would free you from steep interest rates and fees tied to cash advances. If you lay out the parameters of the loan and make repayment them a priority, this could be your saving grace.
Withdraw from Your Assets
Ask for a Bank Loan, Consolidation Loan, Line of Credit, or Credit Card Limit Increase
What Is A Money Transfer Credit Card
A money transfer credit card enables you to move cash from your credit card to your bank account, either to clear a debt or sort out your overdraft. You usually pay a fee to move the money, but once it is in your account you may not have to pay an interest on the sum for 12 to 18 months. You will still have to pay it back eventually, though, so treat the money transfer as a loan and think carefully about how you will pay it off before you go ahead.
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Use Your Visa Gift Card To Buy Other Merchants Gift Cards
If theres a particular store you shop at that doesnt accept your Visa gift card for purchases, you can use this card to buy a gift card from the store where you want to buy something.
And if you look online, you can sometimes find these for sale for up to 20% off meaning youre getting 20% of the Visa gift card balance for free.
This could include stores like Amazon, Walmart or even Starbucks if you were planning to convert your Visa gift cards to cash simply to get a caffeine hit.
Alternatively, you could earn gift cards to all these stores and dozens more just by using an app like Swagbucks. Its basically like earning free coffees from procrastinating on your phone!
Cashing Out With Cheques & Echecks
This is one of those long-standing online casino cash out options that proves that,on occasion, newer isn’t better. Cashing out of an internet casino site viacheque works no matter what technical limits you may face, and there really issomething to say about the experience of receiving a freshly cut paper cheque withyour winnings – you can’t frame a wire transfer! Expect a few days for processing,and then a few more for delivery.
You can also use eChecks, which is just a safe andreliable as using physical cheques, but much quicker. As with all deposit options,you’ll have your money sooner rather than later if you stick with our recommended online casinos.