Sometimes you may find yourself in a situation—maybe even an emergency—where you need cash. If there’s no other way to get it, you might consider withdrawing money using your credit card. This is one type of cash advance. Show
Read on to learn more about how a cash advance on a credit card works, how much it may cost and whether there’s an alternative that could be better for you. Key Takeaways
See if You’re Pre-ApprovedCheck for pre-approval offers with no risk to your credit score. Get StartedWhat Does ‘Cash Advance’ Mean?A cash advance lets you borrow a certain amount of money against your credit card’s line of credit. You usually pay a fee for the service. How Does a Cash Advance Work?A cash advance isn’t like using your debit card to get cash. The money doesn’t come from your bank account. Instead, it’s added to your credit card balance. And a cash advance can come with fees and higher interest rates than typical credit card purchases do. So while it may be convenient, it can be more expensive than making a purchase on your credit card. How to Get a Cash Advance From a Credit CardDepending on your issuer, you can get money through a cash advance a few ways:
What Other Transactions Might Be Considered Cash Advances?Using your credit card to get a cash advance at a bank or ATM is pretty straightforward. But there are other types of money transfer, gambling and quasi-cash transactions that might be classified as cash advances—depending on your issuer. If you use your credit card for these transactions, you may be charged a cash advance fee and a potentially higher cash advance interest rate. Here are a few examples of transactions that may be a cash advance:
Check your issuer’s policy to learn more. How Much Does a Cash Advance Cost?The cost of a cash advance depends on a number of factors. For your specific terms, you can check your credit card account terms or contact your issuer. But keep in mind that there are typically fees associated with a cash advance. What’s a Cash Advance Fee?A cash advance fee is basically a service charge from your credit card issuer. Depending on your issuer, it can be a percentage of the cash advance amount or a flat fee. It could be taken out of the cash advance when you receive it or posted to your credit card bill. What’s a Cash Advance APR?When it comes to credit cards, interest and annual percentage rate (APR) are usually the same thing. Cash advances often come with a higher APR than any purchases you make with the same credit card. According to the Federal Deposit Insurance Corporation, the APR could be twice as high. Plus, most credit cards don’t offer a grace period on cash advances. This means that you’ll likely start accruing interest immediately. What Other Fees Are Associated With a Cash Advance?You might have to pay a service charge if you take out a cash advance at an ATM—just like you do for any other transaction. Your bank may charge a fee for taking out a cash advance in person too. A cash advance will also use more of your available credit. This impacts your credit utilization ratio. And depending on how much you borrow, that could lower your credit score. When You Might Consider Using a Cash AdvanceA cash advance can be a quick way to access funds if you really need to. But doing the following might be helpful:
Alternatives to a Cash Advance on a Credit CardIf you’re undecided about a cash advance, there might be other ways to access cash quickly. Here are a few options you could consider:
Understand the Fine PrintA cash advance can seem like a quick way out of a tight financial spot. But it could be more expensive than making a purchase on your credit card. It’s important to fully understand how cash advances work and to use them responsibly. And knowing the potential costs and possible alternatives can help you decide whether a cash advance is the right choice for you. We hope you found this helpful. Our content is not intended to provide legal, investment or financial advice or to indicate that a particular Capital One product or service is available or right for you. For specific advice about your unique circumstances, consider talking with a qualified professional. Capital One does not provide, endorse or guarantee any third-party product, service, information, or recommendation listed above. The third parties listed are solely responsible for their products and services, and all trademarks listed are the property of their respective owners. How do you get cash from your credit card?How to get cash from a credit card. Contact your bank to establish a PIN (if you don't already have one).. Find a participating ATM that has your credit card's logo.. Insert your credit card and enter your PIN code.. Choose “cash withdrawal” or “cash advance.”. Enter the amount of cash you'd like to receive.. How do I get cash from my credit card without a PIN?The easiest way to withdraw cash from a credit card without a PIN is to visit a bank that does business with your credit card company, ask the teller for a cash advance, and present your card along with a government-issued photo ID.
Can you transfer money from credit card to bank?It's possible to transfer money into a bank account using a credit card – but some ways of doing this are cheaper than others. One of the easiest options is to get a money transfer credit card. This allows you to transfer money from your card directly into your bank account.
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