Getting cash from credit card, also known as asking for cash advance, can be quite convenient in case you need money in cash, but also it not only can be, but is, quite expensive. When you get cash from credit card, it is almost just the same thing as when you use your credit card to buy something, but rather that buying something, we can say that you are “buying” money. The thing is that, when you are “buying” money, and not things, you will get charged for cash advance fees. Let’s see what you should take in mind before you ask for cash directly from your credit account.
How to get cash from credit card
First of all, not all credit cards come with the ability to make this transaction. Before you start thinking about getting cash from your credit card, firstly make sure that you are allowed to do so. You can ask your credit card issuer about this, or even you can go directly to the ATM and try to withdraw the money from you credit balance. But even before you do this, check the credit card cash in advance fees: some cards even have a flat fee per cash in advance, which will mean you will be charged for five or ten dollars only for withdrawing the money, And then, apart of the flat flee, at the end of the month you could get charged for higher interest rates.
Another thing you should know is that cash advances don’t have a grace period. What does that mean? It means that the interest start running as soon as you get the money. So if it is possible, once you get your problem solved pay the debt as soon as possible even if that means paying before the next bill comes.
Let’s see which fees can you get charged for when you get cash from credit card:
- Cash in advance fee. This is something you will find at mostly every credit card issuer, and it’s a flat fee you will pay when you get cash from credit card. Sometimes it’s a flat fee, which means you will pay five or ten dollars whatever is the amount of money you are withdrawing from your credit balance; in other cases, you can get charged for a higher cash in advance fee the higher is the amount of credit in cash you are asking for.
- Interest rate. Even if you are not charged for buying things with your credit card, and you only have to pay the credit balance at the end of the month, that does not mean that you can not be charged for interest rates when you get cash from the credit card. Take in mind the charge on cash advance, as it can be really high.
- And the ATM fee. If you withdraw the money from an ATM, be sure to check if it is compatible with your credit card, because otherwise you can get charged for the ATM fees.
What are the risks for getting cash from my credit card?
There is something more you should know before you get cash from your credit card. When you get cash from your credit balance, you are assuming some risks: first of all, you are leaving behind you a bad sign for lenders, as asking for cash in advance is something that will not help you the next time you are looking for a loan. People mostly use cash advances when they are desperate, so try to avoid this until you really need the money.
Apart of the risk of getting flagged as an “no” for lenders, there is one more thing: when you get cash from your credit card, there is no grace period, which means you will start getting charged for the interest immediately. And there is nothing strange about an interest rate of 15, 20 or even 25%.
As you can see, there is a lot of cons about asking for money in advance from you credit account. So, have you thought about alternatives instead of the credit card advance? You can look for a personal loan, or you can even borrow money from friends or family. Even if they make you pay interest rates, they will be much lower than the rate you will have to pay your bank.
How can I get cash from my credit card?
Now that you are ready to ask for cash advance from your credit card, it’s time to move on and get the money in your hands. If you want to get the money from an ATM, the first thing you must do is find (or set) the PIN for your credit card: it should come in a letter in which you received the card, but even if you have lost it, or you have never used it, just call the number on the back of the credit card and ask for a new PIN. It can take a few days to get the new code.
Now that you have your PIN and your credit card ready, go to an ATM and withdraw the money. Try using an ATM from the same network as your bank, as otherwise you will get charged for extra fees… and enough fees will you pay already only for asking for the cash advance. You must take in mind that your available cash limit for cash advance is not the same as your credit card limit, so be sure to check your limit for credit cash before you withdraw the money.
And remember: the sooner you pay the cash advance back, the better for you. And, of course, never forget that if you don’t pay the debt pack it will get out of control soon. And then you will have a really big trouble.