Learn about cash advance charges on EI credit cards (Emirates Islamic credit cards). Understand fees, interest rates, and tips to minimize costs. Explore alternatives to cash advances.
Understanding Cash Advance Charges on EI Credit Cards
Credit cards offer a convenient way to make purchases and manage expenses. However, sometimes you might need immediate cash. While credit cards allow cash advances, it’s important to understand the costs involved before using this feature. Let’s find more about cash advance charges on EI credit cards (Emirates Islamic credit cards).
Table of Contents
What is a Cash Advance?
A cash advance allows you to withdraw cash from an ATM or bank branch using your credit card. Think of it as a short-term loan using your credit limit. This can be useful in emergencies or when you need cash and don’t have access to your debit card.
Cash Advance Charges on Emirates Islamic credit cards
Emirates Islamic credit cards come with specific charges for cash advances. Here’s a breakdown:
- Cash Advance Fee: This is a percentage of the cash withdrawn or a fixed amount, whichever is higher. Typically, EI charges 3.15% of the amount withdrawn or AED 103.95, whichever is higher.
- Interest Rate: Cash advances attract a higher interest rate than regular purchases. The interest rate is calculated daily from the date of withdrawal until you fully repay the amount.
- No Grace Period: Unlike typical credit card purchases, cash advances don’t have a grace period. Interest starts accruing immediately.
Example of Cash Advance Charges on EI Credit Cards
Let’s say you withdraw AED 1,000 as a cash advance from your EI credit card. Here’s how the charges might look:
- Cash Advance Fee: 3.15% of AED 1,000 = AED 31.50 (or AED 103.95, whichever is higher)
- Interest Rate: If the interest rate is 3% per month, and you take 30 days to repay, the interest charge would be (AED 1000 * 3% * 30)/365 = ~AED 25
Tips for Minimizing Cash Advance Costs
- Avoid Cash Advances When Possible: Use cash advances only as a last resort due to the high costs involved. Explore other options like using your debit card or seeking short-term loans with lower interest rates.
- Repay Quickly: The longer you take to repay, the more interest you’ll accumulate. Pay off the cash advance amount as soon as possible.
- Check Your Card’s Terms: Carefully review your EI credit card agreement for specific details on cash advance charges.
Alternatives to Cash Advances
Consider these alternatives before opting for a cash advance:
- Debit Card: Use your debit card at ATMs to withdraw money from your checking account.
- Personal Loans: If you need a larger amount, a personal loan might have a lower interest rate compared to a cash advance.
- Balance Transfers: Some credit cards offer balance transfers with 0% introductory interest, potentially saving you money if you need to carry a balance.
Contact Emirates Islamic Customer Care
If you have any query please contact Emirates Islamic Customer Care: https://www.emiratesislamic.ae/en/help-and-support .
Conclusion on Cash Advance Charges on Emirates Islamic credit cards
While cash advances on EI credit cards offer flexibility, it’s crucial to weigh the costs involved. Use this feature responsibly and understand the charges to avoid unnecessary debt.
FAQs: Understanding Cash Advance Charges on EI Credit Cards
1. What is a Cash Advance?
A cash advance allows you to withdraw cash from an ATM or bank branch using your credit card. It’s like borrowing money against your credit limit, useful in emergencies or when access to your debit card is limited.
2. What are the Cash Advance Charges on EI Credit Cards?
Emirates Islamic credit cards entail specific charges for cash advances:
- Cash Advance Fee: This is a percentage of the withdrawn amount or a fixed sum, whichever is higher. Typically, EI charges 3.15% of the amount withdrawn or AED 103.95, whichever is greater.
- Interest Rate: Cash advances incur a higher interest rate compared to regular purchases. Interest is calculated daily from the withdrawal date until the full repayment.
3. Is There a Grace Period for Cash Advance Charges on EI Credit Cards?
Unlike standard credit card purchases, cash advances do not have a grace period. Interest starts accruing immediately from the withdrawal date.
4. Can You Provide an Example of Cash Advance Charges on EI Credit Card?
If you withdraw AED 1,000 as a cash advance:
- Cash Advance Fee: 3.15% of AED 1,000 = AED 31.50 (or AED 103.95, whichever is higher)
- Interest Rate: Assuming a 3% monthly interest rate and 30 days to repay, the interest charge would be approximately AED 25.
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