When Paper Beats Plastic Cash Advance

Paper or Plastic? 

The invention of the credit card in the 20th century has forever changed the way we do business on a personal level. The term "credit card" was first coined in a utopian novel by Edward Bellamy, called Looking Backward, which was published way back in 1887. It wasn't until the 1990's however, that the credit card penetrated markets all over the world. Today, the credit card is a staple in many countries across the globe. Yet there are still countries where credit cards are basically useless, and even in in the countries that rely heavily on these one will still need cash for certain services. A cash advance gives you the best of both worlds: you have a credit card from which you can get a little cash when you need it.

Plastic To Electricity To Paper  

How does this work? The plastic credit card is inserted into an ATM, which communicates electronically with your bank, and then dispenses some real currency in the notes used by the country where you are. This type of transaction is limited to a certain amount per month, which is generally much smaller than the credit limit. Any advances made in excess of the monthly limit is either denied, or permitted but with a flag on your account. Approved excess advances are usually handled in much the same way as charges exceeding the credit limit. A cash advance is basically an option to get some cold hard cash from your credit account. You will need to pay it back of course, and many of the charges applied on credit purchases will apply. 

  

An Emergency Cache of Cash  

So how does this prove useful? Imagine you need to get your teeth done after accidentally falling down and chipping a tooth. You need money right away, as you need to get your teeth fixed before that gala event you are attending later this week. Taking out a personal loan will take too long, and you have already deposited your cash into the bank. None of your friends really keep cash on hand, so asking for a loan is pretty much useless. Then you remember that your credit card has a function for releasing cash to be charged against your account. You rush to the nearest ATM, get an advance on some real money, and then take it to your dentist's. Your sparkly smile is saved, just in time for that evening party with all the local movers and shakers. It is in emergencies like these that a cache of cash can save your life, figuratively or even literally. When you find yourself facing a situation that requires real money and not credit, this function is most helpful. Of course, keeping a bit of real money at hand is always a good idea.