Cash advances are a great way to access extra funds in times of need, but their interest rates can often be quite high. To make sure you don’t pay too much for a cash advance and get the most out of it, here are some credit score tips to consider:
1. Pay off Your Balance on Time: A cash advance is basically a loan, so the best way to prevent paying more is by paying it back on time. Late payments can not only lead to additional charges, but also impair your credit score.
2. Keep Balances Low: When you take out a cash advance, it’s important to keep the amount you borrow as low as possible. This will help prevent you from overextending yourself and avoid having too much credit to pay off.
3. Avoid Multiple Cash Advances: Multiple cash advances can be difficult to manage, so it’s best to keep track of how much you’ve borrowed and when each payment is due. Having too many cash advances at once can be a red flag to lenders and can negatively impact your credit score.
By following these simple tips, you can ensure that your cash advance works to your advantage.