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The fees and interest rates associated with these loans can be very high, and you may end up paying much more than you borrowed. If the credit borrower consistently maxes out their credit limit and carries a high balance from month to month, they may end up paying more in interest and fees over time. Banks may also have more stringent eligibility requirements than other types of lenders, which could make it harder for some borrowers to qualify for a loan.
Cardholders should carefully consider their options and only use cash advances on credit cards as a last resort. Additionally, cash advances on credit cards do not have a grace period, which means that interest begins accruing on the bad borrowed amount as soon as it is withdrawn. Here are a few:.