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Wondering if you can get a cash advance on your credit card?
“Cash advance” refers to your ability to get cash on a credit card. A cash advance borrows money from your credit card account rather than using it to buy a product or service.
If you ever find yourself in the need for cash, this option can be a good one for special occasions.
Now, just because you have a credit card doesn’t mean you can get cash from it. It all depends on your credit card lender.
For example, you may have a $5,000 credit limit but only a $500 cash advance limit. To find out how much cash you can get on your credit card, you’ll need to refer back to your account information.
Getting cash from your credit card is pretty simple.
Step One: Check your last credit card statement and see what your cash advance limit is. This is the amount of cash you can get from your credit card.
If you try to get more, your credit card will be denied for the cash advance. Make sure you know the exact number.
Step Two: You also want to make sure you read your terms and agreement with the credit card lender.
Cash advance fees may be applied to your account for getting a cash advance. You’ll likely be charged a one-time fee and perhaps higher interest rates too.
Step Three: In order to get a cash advance on your credit card, you must have a PIN. If you don’t, you won’t be able to get a cash advance.
Credit card lenders will usually give you a PIN. If not, you can contact the lender to get a PIN. They won’t give you the PIN over the phone, so you’ll have to wait for them to mail it to you.
Once you have that PIN, you can get cash advances.
Step Four: You can go to a ATM with your credit card and draw money out as long as you have your PIN. You’ll want to make sure the ATM accepts your type of credit card.
When asked to choose credit or debit, you’ll need to pick credit.
Step Five: You can also go to your bank and tell them you want a cash advance from your credit card. As we said earlier, you want to make sure you know the exact amount you’re allowed to withdrawal.
If you go over a penny, it won’t work. Now, you don’t have to withdrawal your whole limit, just what you need.
What About Cash Advances Online?
Yes, you can also get a cash advance online. All you have to do is go to an online cash advance lender and apply for a short-term loan.
You’ll be required to fill out an online application and once you’re approved, you’ll know how much money they can lend to you.
There’s many short-term loan lenders online to choose from.
You’ll likely be charged a one-time fee if approved and you’ll have to make monthly installments until the full balance is paid in full.
Cash advance loans can be expensive with high interest rates, so make sure you read how much it will cost before you apply.
Are Cash Advances Bad?
No, cash advances can come in handy, especially when you have emergencies that warrant a large amount of money at once.
With that being said, cash advances are expensive.
A lot of financial experts warn against getting cash advances, some short-term loans also. Many of them can have interest rates at 25 percent or more.
If you need emergency funds, the money can be a life saver.
If you can go without the cash advance, it may be worth passing on the opportunity. No matter what you decide to do, always make sure you understand the full cost.
If there’s a silver lining, it’s the fact that this shouldn’t hurt your credit as long as you’re paying back the cash advance as agreed upon.
Should I Get A Cash Advance?
Well, that’s up to you to decide. However, we recommend asking these questions before you decide if a cash advance is “right for you.”
- Is this an emergency situation where I need the money now?
- Will this be for an expense, bill, food?
- Will I be able to pay it back in a month, 2-3 months?
- Do I really need to buy what I’m buying?
- Can I really afford to borrow this money?
Getting a cash advance just to buy something you really don’t need, it’s likely not a good reason to get one. If your heating and cooling goes out, that’s a different story.
If this is the only way you can get money right now and the bills are due, that’s a tough decision.
In some scenarios, a cash advance helps. In others, it can put you in a deep whole that’s tough to climb out.
When it comes to cash advances, the bottom line couldn’t be clearer.
If this cash advance is needed for something important, use it. If this cash advance is for something you can do without or don’t need right now, look for another option.
The high APR alone would be more than enough to turn me away. If you’re not worried about that, that’s fair, but don’t forget about it.
Many years ago, I wasn’t make a lot of money and have to get a cash advance every few weeks. I was paying high interest and ended up in trouble. I just don’t want that for you.
All I’m saying, think about what you’re about to do. Make this a sound decision, one you carefully think through.
No matter what you ultimately do, make sure you know what you’re getting into. Make sure you take the time to read the fine print and don’t choose the first lender you come across.
Take the time to shop around and choose the one with the best interest rate.