Taking a cash advance on your credit card for daily living expenses may not be a wise financial decision because interest begins on the cash advance balance amount immediatelytrue/false

Question

Business

Misael

24 May, 02:16

Taking a cash advance on your credit card for daily living expenses may not be a wise financial decision because interest begins on the cash advance balance amount immediatelytrue/false

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Answers (1)

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Regina Underwood · Answer 1

The statement is true

Explanation:

Credit card is the card which provide the benefit to the people to purchase the items without cash. In short, it is that card which the person could use when the person is short of cash or does not have cash while purchasing the item.

The benefit which is provided, it is against the interest which is being charged from the day the amount is spent till the date the whole amount (which is principle amount plus the interest amount) is paid to the company.

So, taking the cash in advance from the credit card would not be a wise decision as the interest begin from the day the advance is taken.