If you own a credit card, you must be aware of the feature called ‘cash advance.’ The credit card issuer will inform you about cash advances when you apply for the card. A cash advance is an amount of cash that you can borrow against your credit. All credit cards come with a credit limit, and a cash advance will allow you to borrow cash against this limit. You have to pay back the advance with interest. This amount is tied to your credit card and you have to repay it over a period of time. You can also make minimum payments in installments. Features of cash advance Your limit of cash withdrawal depends on the limit of your credit. You need to refer to your account to determine the amount of cash advance you are eligible for. This limit could also be lower than the total limit in case there is a balance on your card. You need to understand that this cash advance feature is not available to customers free of cost. Customers need to pay a fee and this fee includes an interest rate that is higher than the interest rate applicable to all the purchases made by the credit card.

The possession of a credit card might give you a sense of power in terms of being able to buy what you wish when you wish for it. However, it would be good to be informed that as with all things that are transactional in nature, no service comes free. The fees that you incur on your credit card spends will essentially be a combination of base costs and merchant’s discounts, also known as markups. The largest portion of your total spend, between 70 and 80 % of the total amount would be the base cost of the goods/services purchased by you, using your credit card. To this, is added the markup which may be between 20 and 25%. Do remember that no credit card service provider can offer you negotiable base costs in terms of lower rates or better deals. The base credit card processing fees are the same for all credit card processors. Interchange is a significant part of the expenses involved in credit card processing but interestingly, neither your card processor nor the card association (Visa or Mastercard) earn from this. Interchange is levied by the issuing bank when you accept its credit card and the rate is determined by the issuing bank and the card association.

Are you having trouble figuring out how the charges on your credit card bills add up? Here is a simple run down of the important steps involved in the processing of your credit card which will also be useful in understanding how the system works and therefore, what kind of charges are likely to be levied on you. The major players involved in credit card processing are the card holder, the merchant or the business, the acquiring bank which is the merchant’s bank, the issuing bank which is the card holder’s bank and the Credit Card association such as Visa or American Express or Mastercard. In the very first step, you submit your credit card to the merchant or seller to be swiped. At the Point of Sale, the merchant swipes the card using the equipment and software that is given to him by his merchant bank. With the digitization of all key accounts related information and also advances in technology, it takes merely seconds for the vendor’s system to transmit the card number and other relevant information to a processor which passes on the processing request to the credit card issuing bank. If the issuing bank approves the transaction, it immediately sends back an authorization via the card network, which in turn, lands at the merchant’s terminal.

In the current times, when credit cards offer us great versatility in terms of buy-now-pay-later plans, it is extremely critical that you use your credit card sensibly. Here are some measures to ensure that using credit cards works for you instead of against you. Just because you have a line of credit, it clearly does not mean that you spend indiscriminately. It is very important to keep a careful record of what you spend and ensure that you aren’t making purchases that exceed your monthly income. Credit card companies give you a time between 30 and 45 days from the day you make a transaction to the day you make the payment. However, it is requisite that you pay all outstanding dues on or before the stipulated date so as to not incur interest and penalties on late payments or defaulted payments. Defaulting on payments can also unfavorably affect your credit score. Although your card statement will show you a minimum amount due every month, it is not advisable to keep paying as per that as you will be levied heavy interest on the unpaid amount which is still outstanding, a sum that will only compound month on month, possibly running you deeper into debt.

For all of us who love to travel to exotic locations, the offering of travel credit cards is surely a boon from many perspectives as they provide us with great financial flexibility, especially when one is in a foreign country. With many airlines joining the credit card fray in collaboration with well-known banks, the options for travel credit cards are aplenty. Here are a few points to keep in mind when you decide which kind of travel credit card to opt for. First of all, identify what your travel goals are. How frequently do you plan to travel? Where do you plan to travel? What are your goals in taking a travel credit card? These are the questions to keep in mind. While screening your options, look at the rewards for spend offers that are available, as spends on some credit cards may convert to airline miles while other rewards may include discounts on dining or hotel accommodations. If you already have points from previous travel on specific airline alliances, then you could consider a credit card that adds on to the mileage you already have so as to maximize your benefits. Many credit card companies offer lucrative signing up bonuses when you sign up for a travel credit card.

Gas credit cards can be of the following types: Gas Reward Cards Gas Station Rebate Cards Fleet Gas Credit Cards Depending on the frequency of refilling gas, you can choose the Gas rewards or Gas Station rebates for personal or non-business gas credit cards. Fleet Gas Cards can be used for a small business in the transportation and logistics centers. Highlights of the best gas credit cards Bank of America® BankAmericard Cash Rewards This offers you up to 3% cashback on gas/diesel purchases and up to 2% on grocery purchases. The company offers 1% cashback on other categories. It also offers other bonuses for Bank of America savings and checking account holders. There are no annual fees. Costco Anywhere Visa® Card This offers you up to 4% of cashback on gas/diesel, 3% on grocery purchases, 2% on restaurants and travels. In addition, it offers 2% on Costco purchases, however, this is not applicable to other wholesale purchases. Costco membership has no annual fees. Chase Freedom® This card is suitable for customers who prefer to drive occasionally. The offers include 5% cashback capped at $1,500 for combined purchases i.e. gas/diesel purchases plus gas station purchases. The average gas rewards are at 3% with seasonal offers from e-commerce websites, home improvement stores, and restaurant.

Credit cards are a must-have. They help you to manage your finances in a better way. Choosing the right credit card based on your needs is an important decision. We have listed down the best credit cards of 2018 to simplify your task. Chase Sapphire Preferred Credit Card This card was once awarded the title of the Best Travel Credit Card. It offers a bonus and easy-redeem travel rewards. It carries no foreign transaction fees. When you spend $4,000 in the initial three months, you earn 50,000 bonus points. This means you get a credit of $625 while booking your travel through Chase Ultimate Rewards . Besides, you also earn twice the points when traveling and dining across the globe. BankAmericard Credit Card One of the best credit cards of 2018, this card comes with no annual fee. It also comes with a zero percent intro Annual Percentage Rate (APR) for 15 purchase billing cycles. For the first 60 days, the intro balance transfer fee is also nil. Post that, it is three percent. There is no penalty APR. This means that if you pay late, your APR would still be unaffected. Discover it – Cashback Match This card offers a cashback match to new members for the first year.