Table Of Content
What is a Credit Card Cash Advance?
A cash advance is when a consumer withdraws cash against their credit limit through their credit card. The cash advances may be completed at an ATM, a bank, or even over the phone.
This is not the same as withdrawing cash using a debit card. The debit card withdrawal pulls from your bank accounts, which will not incur a fee. Withdrawing with credit cards, on the other hand, will have a charge associated with the high-interest rates.
In some cases, cash advances come with a higher APR and an automatic charge in addition to the cash withdrawal.
Should I Get Cash Advance?
Cash advances are typically used for people who need cash quickly.
While it provides people with a quick cash option, it also puts them in some trouble with the increasingly high-interest rates for the cash advance. Cash advances offer many advantages and disadvantages, but a majority of the time the disadvantages outweigh the advantages.
Of course there are other options one could choose from instead of the cash advances, it really depends on the person for what people need.
Ways To Get A Cash Advance
Depending on the company you have your credit card through, there are a few different options to taking out a cash advance.
- In person/At your bank – This option requires you to go into your personal bank, and ask a teller for a cash advance with a credit card. You will need your credit card and a government-issued photo ID when going this route.
- ATM – as previously mentioned, credit card users may use an ATM to take out a cash advance if they have their pin.
- With a Check – This option is not as common, but if you received checks from the credit card company, you could fill one out with your name as the payee. You would then be able to cash it or deposit it into your bank. However, not all companies offer checks with their credit cards, so you must check your terms and conditions before using this option.
How To Get A Cash Advance In Person/At Your Bank
Getting a cash advance in person at your bank is easy, but take more time compared to ATM:
How To Get A Cash Advance At Your Bank |
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1. Checking Account Status |
2. Preparing Documents |
3. Find A Bank
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4. Get Cash From Bank Teller |
5. Consider Online Banking or Mobile App
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1. Checking Account Status
Before taking a cash advance on your credit card, there are a few key steps to follow, regardless of the method you choose.
First, check your account status and credit limit. If you're behind on payments, you won’t be eligible for a cash advance. Also, review your statement to make sure you haven’t missed any payments or hit your credit limit.
2. Preparing Documents
When going through a bank, there are a few required documents in order to qualify for a cash advance at a bank. First, you need a valid ID showing you are at least 18 years old. The valid ID could be a license, a passport, or a state-issued ID.
Furthermore, you would need to provide proof of steady income, which could be your most recent pay stub. To get your most recent pay stub, you could view your most recent deposits on your bank.
Another requirement is to have an open and active checking account. Finally, you need to provide a working phone number.
3. Find A Bank
Once you have all the necessary documents, the next step is to find a participating bank near you. To do this, start by figuring out which credit card issuer you have.
Once you know the issuer, look for their local branch. A quick Google search with the issuer’s name followed by “local branch” will help you locate a nearby branch where you can go to get your cash advance.
4. Get Cash From Bank Teller
Once at the bank, you are able to go to a bank teller, provide the required documents, and you will be able to take out a cash advance. The process for this is quite simple. The bank teller will first ask for the credit card that you are taking the cash advance on, along with a valid form of identification.
After you have provided your credit card and ID, the bank teller will input the information into the system to see if you are qualified. If you are qualified, you will then be able to tell the teller how much you would like to take out, the bank teller will then give you the cash and you may be on your way.
5. Consider Online Banking or Mobile App
In most cases, you can complete the process online:
- Online Banking – You could do this online if your bank offers online banking. You would select Transfers at the top of the page and then get a cash advance. You are then able to choose the account the funds will come from, the account they will go to, and the amount you are taking the advance out. Once you have completed these steps, you can review your selections and hit submit.
- Mobile Apps – If you are unable to complete this on a computer, most banks offer a mobile app that allows you to complete the cash advance online. Simply sign on to your bank's mobile app with your credentials, select “Pay bills & Transfer”, then select transfer money. You will then choose where the funds come from and where they will go, enter the amount, and select the date to be transferred. Afterward, you may review your selections and select transfer.
How To Get A Cash Advance Through An ATM
Getting a cash advance through ATM is simple and quick:
How To Get A Cash Advance Through An ATM |
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1. Get A Permission |
2. Have Your PIN |
3. Locate An ATM |
4. Get Your Cash |
1. Get A Permission
When going through an ATM, you must first make sure you have permission from your credit card company. In order to do so, you may call the credit card company’s customer service department, or the toll free number on the back of your credit card.
This is not required in all cases – if you already used a cash advance, you may not need it.
2. Have Your PIN
Next you must locate your personal identification number, which is given to you when you first receive the credit card.
If you have forgotten your PIN, or wish to change it, you may call the automated 800-number. Once you have permission and the PIN, you are then able to find an ATM that is associated with your bank.
3. Locate An ATM
If you are unsure where to find an ATM, log onto the online website, select “Nearby ATM”, or simply search it through Google. Of course this is not required, but you will receive an extra service fee.
4. Get Your Cash
After you are at the ATM, you may insert the credit card, enter your pin, and select the cash advance option. Once at the cash advanced window, you may enter the amount of money you want for the cash advance.
There may be extra fees associated with the transaction, in order to complete the transaction you must accept the fees. Once accepted, you are then able to take the cash and take your credit card from the machine.
Cash Advance Fees And Charges
Cash advance fees and charges are high, and considered one of the reasons you should avoid cash advances.
Here are cash advance fees and cash advance interest rates on some of the most popular cards:
Card | Cash Advance Fee | Cash Advance Interest Rate |  | Chase Freedom Unlimited® | $10 or 5%, whichever is greater. | 24.99% |
|---|---|---|---|
| Chase Sapphire Preferred® Card | $10 or 5%, whichever is greater.
| 25.74% Variable |
| Costco Anywhere Visa® Card by Citi
| $10 or 5%, whichever is greater. | 28.99% Variable |
| Blue Cash Preferred® Card from American Express | $10 or 5%, whichever is greater. | 28.99% Variable |
 | Blue Cash Everyday® Card from American Express | $10 or 5%, whichever is greater. | 28.99% Variable |
| Capital One Venture Rewards Credit Card | $10 or 3%, whichever is greater. | 24.90% Variable |
| Discover it® Cash Back | $10 or 5%, whichever is greater. | 27.99% variable |
| OpenSky® Secured Visa® Credit Card | $6 or 5%, whichever is greater. | 20.39% Variable |
| Wells Fargo Reflect® Card | $10 or 5%, whichever is greater.
| 29.74% Variable |
Can You Use a Credit Card At An ATM?
Yes, if your credit card came with a PIN, you can get a cash advance straight out of an ATM. Otherwise, you’ll have to go to a bank that offers advances through your card’s network such as Mastercard or Visa. They will probably ask for an ID card.
Keep in mind that most credit card companies won’t allow you to take your entire credit limit in the form of a cash advance. For many cardholders, the card companies restrict the cash advance to a maximum of a few hundred dollars.
This would mean that in an emergency, you can’t count on a credit card advance to provide you with too much cash.
Can I Get Cash From Credit Card Without Cash Advance?
Yes, this is possible. However, the process is longer compared to credit card cash advances.
- Prepaid Cards – One way to avoid cash advances while getting cash from a credit card is to purchase prepaid cards. Many different companies offer prepaid cards; the more common ones would be Visa or MasterCard. For this to work, you would purchase the prepaid card with your credit card, then take the prepaid card to an ATM and make the withdrawal.
- Through a Friend – Another way to avoid cash advances is if you have a friend purchasing an item in cash, offer to use your credit card and they could pay the cash to you instead. This of course depends on your friend agreeing to it, but you would avoid any cash advance fees and even ATM fees.
Why It's Better to Avoid Getting a Cash Advance
While it may seem like a good idea to fix your money problems quickly, cash advances typically come with a number of issues that make them not worth the hassle.
- Cash Advance fee
As the title implies, each cash advance will incur a fee. That fee will depend on the credit card company and its policies. It is common for most credit card companies to have a 3% to 5% fee.
An example of this would be if $100 is taken out as a cash advance, the fee could be anywhere from $3 to $5, in addition to the $100.
- Interest Rates
Most credit card companies will charge an even higher interest rate for cash advances compared to purchasing a regular item with a credit card.
- Grace Period
Most regular purchases have a grace period of at least 20 days to be paid off before the purchase is charged interest. Cash advances on the other hand start incurring interest on the day the cash advance is taken out.
- Lower Credit Limit
A majority of credit card companies have a lower limit on the amount of credit a person could borrow as a cash advance. For example, a person could have a normal credit limit of $5,000, but a cash advance limit of $500.
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Can You Get Cash Advance On Credit Card Without A Pin?
While having the pin will make the cash advance transaction much smoother, it is not always required.
- Bank Teller – The easiest way would be to go through the bank tell option described before. The only requirement is to have a card and government-issued photo identification.
- Credit Access Checks – some companies use credit access checks, which you could use to withdraw cash from the credit line. While they are checks, they are still subjected to the higher APRs and offer no grace periods.
- Money Transfer Services – Another option would be to use money orders from companies like Western Union. While it wouldn’t provide cash on the spot, it would allow you to transfer funds to someone using a phone number or an email address.
Can You Get A Cash Advance On My Debit Card?
While most people associate cash advances with credit cards, debit cards also offer the option of a cash advance.
Cash advances with a debit card withdraw money directly from your checking account. It is just like you are taking money from the ATM.
In order to take out a debit card cash advance, you have to go to the local bank or credit union branch and talk to a teller. There are typically fees associated with this advance, which is usually a percentage of the amount withdrawn, similar to taking a cash advance with a credit card.
There are a number of advantages to this option like higher limits, using other banks, and less interest:
- Higher limits – Taking cash out through an ATM typically has a limit on how much could be taken out (usually around $300 – $500). However, with a cash advance, the limit is much higher, usually in the thousands instead of hundreds.
- Other banks – debit card cash advances are not limited to your personal bank. You are able to use any local bank, regardless of whether or not you are a member of the bank.
- Interest – The great news is that a debit card cash advance only comes with the initial fee; no additional interest fees would be charged.
Alternative To Credit Card Cash Advance
Although getting a cash advance from your credit card may be quick and easy, it is a very expensive way to get money fast. Before you opt for this type of loan, you might want to consider some other ways to get the money you need.
Maybe try a credit union, borrow money from friends or family, or try selling some of your personal property on eBay or CraigsList. While a cash advance can help you fund an unexpected expense, it can be a very expensive short-term loan.
It is important to examine your finances carefully and do what is right for you. If you do decide to use a credit card cash advance, make sure you pay it off quickly and get your finances back on track as soon as you can. The quicker you pay this loan off, the better your finances and credit score will be.
Using this type of loan once in a while has its purpose – just don't get in the habit of using this type of high-interest loan very often.
FAQs
At the present time, it is not possible to take a cash advance on your PayPal credit.
The number of advances made in a day is capped depending on the credit card company. For example, a card issuer could limit the number of times you withdraw money from ATMs in addition to the amount.
Venmo credit cards allow you to take a cash advance right at an ATM. It would run similar to a regular credit card, you have to enter your pin, select the cash advance option, and you are all set.
Cash App allows you to borrow up to $200 through Cash App Borrow. The minimum amount for this loan is $20, and you have four weeks to repay the loan, plus a 5% fee.
There are a number of ways to get the cash advance instantly. The quickest way would be to go to the ATM with your pin. If you are not near an ATM, there are many websites that allow you to get a cash advance instantly online as well.
Given today’s online world, it is possible to get a cash advance online. If you are already approved and have the credit card handy, you could receive your funds within minutes.
