What Is a Credit Card Cash Advance?
You may receive promotional materials from your credit card issuer touting the benefits of obtaining a credit card cash advance. However, such cash advances are subject to fees and interest charges, which accrue until the cash is repaid. When making a cash advance, budget a way to repay the money quickly to minimize fees.
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Identification
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A credit card cash advance is money you receive from a credit card. Oftentimes you must obtain a cash advance from a local ATM; however, many creditors offer cash advance checks, which you can deposit or cash at a financial institution. For a point of sale (POS) transaction, you must choose the cash back option and select the dollar amount you wish to receive. Once your transaction is approved, the retailer will hand over the cash advance you requested.
Fees
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Unless you sign up for or receive a 0 percent cash advance promotional offer, your card is charged either a flat fee or a percentage of your cash advance. This fee is assessed every time you use your card for a cash advance. Flat fees could be as low as $3 and rates as low as 2 to 3 percent. To find out the fees associated with your card, contact your credit card provider.
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How to Obtain a Cash Advance
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To obtain a credit card cash advance, visit a local ATM. Different financial institutions charge different ATM usage fees, so look for signage regarding fees, or read the terms and conditions disclosed on the screen. Insert your credit card into the ATM and enter your PIN number as directed. If you do not have a PIN number, contact your credit card issuer by phone and request one. Select the amount of cash you wish to withdraw and then follow the on-screen prompts. Your transaction will appear on your next billing cycle.
Warning
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Unlike regular purchases, cash advances are not subject to a grace period, which means interest fees accrue as soon as you receive your cash. Depending on the terms and conditions of your cash advance, you may be required to pay down lower-interest transactions before you can pay down higher-interest cash advances.
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References
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