The best and worst ways to borrow money during the federal shutdown

Credit cards are one of the most common ways to borrow money, but also one of the most expensive. Currently, credit card rates have hit a record, with an average of about 17%, according to Bankrate. The rate on a cash advance by credit card is even higher.

For example, the Chase Freedom card has an interest rate of 16.74% to 25.49%, depending on your creditworthiness, but the APR of the advance is 26.74%, according to Ted Rossman, an badyst with sector at CreditCards.com.

In addition, consumers must pay transaction fees – typically representing 3 to 5% of the amount in advance – as well as interest on the loan.

"The truth is that a credit card advance can be one of the best options among the wrong options when times are really tough, and a situation such as the government shutdown can certainly be the only one. to be, "said Matt Schulz, chief industry badyst. on CompareCards.com.

But before paying interest of 30% or more for a cash advance, "it's much smarter to make purchases with the credit card itself, rather than taking a cash advance," said Ashley Dull. , credit strategist at CardRates.com.