The biggest credit news this week is still about the lingering effects of the government shutdown.
While it may seem counterintuitive — after all, what does the government have to do with getting a home loan from a major bank? — getting a mortgage during the government shutdown may prove quite difficult for many Americans.
Why? It all has to do with paperwork. Anyone applying for an FHA loan may experience delays due to limited staff members available to process applications. Also, those applying for loans with non-government financial institutions may face delays if they can’t get forms from the IRS that are needed to verify income.
Benjamin Civiletti. This man may be to blame for the government shutdown — at least partially.
As the Swampland blog explains, Benjamin Civiletti was the attorney general for President Jimmy Carter and he gave the legal opinion that is the basis for the government shutdown today. Essentially, Civiletti told President Carter that if Congress fails to authorize a budget, the government would be required to shut down. He also holds the opinion that government workers deemed “essential” would be entitled to stay on while those deemed “nonessential” would only be allowed to come into the office for a few hours after a shutdown occurs to put things in order.
As the shutdown continues to leave hundreds of thousands of Americans employed by the government without a paycheck, many may be turning to credit to help ride out the storm. But what do you do if you need cash and only have credit as a tool? Credit card cash advances are one thing these Americans may turn to.
Before they hop on the cash advance bandwagon, however, they should know that credit card cash advances may mean extra fees, higher interest rates and no grace period for repaying the debt. That makes them a costly alternative, but they may be necessary if you need cash quickly.