A cash advance fee is a charge imposed by the bank when you use a credit card to obtain cash. This fee can be set as either a fixed transaction fee or a percentage of the cash advance amount. Banks may limit the amount that can be charged and deduct the charge directly from the cash advance when you receive it, or record the charge on your bill on the day you get the advance. To get a cash advance with a debit card, simply go to a local bank or credit union branch and talk to an ATM. A fee will be charged for requesting the advance, usually a small percentage of the total amount withdrawn.
A credit card cash advance is essentially borrowing money from your credit card account. However, taking out a cash advance by credit card comes with costs and, in some cases, limits on the amount you can withdraw. Getting a cash advance may seem like an attractive option in the moment, but it can quickly lead to debt accumulation. We recommend avoiding cash advances altogether and opting for alternative options that have better conditions. Cash advances don't have a grace period like purchases or promotional periods such as balance transfers.
Interest is charged not only on the amount of the cash advance, but also on charges related to it. This means that paying your cash advance promptly is essential to save money in the long run. Your credit card has a limit for all transactions, but the amount of your credit limit that you can use for a cash advance is usually much lower. You may be able to take out a cash advance that is greater than your checking account balance, but doing so means overdrafting, which comes with hefty fees. This means you can't get an advance for more than you already have, which could be an issue if lack of funds is your main problem and not just lack of available cash. A cash advance can help you out of a difficult financial situation if there are no other options, but it's better to plan ahead to avoid taking one.
The APR for cash advances is listed in the interest rates section, while charges are listed along with other charges. Even if you don't usually carry cash, any small cash transaction can be handled easily. A cash advance may seem like an easy way to get quick money, but it can cost you a lot in interest and fees. Some convenience checks come with promotional offers such as 0% APR for a set period of time, which can save money compared to traditional cash advances. If you've decided that a cash advance is right for you, there are three main methods to get cash from your credit card.
