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What Is a Credit Card Cash Advance?

A credit card cash advance is a means to obtain cash straight from your credit card, without having to apply for a loan at the bank. In order to get a cash advance using your credit card, you simply have to go to an ATM and use the credit card as you would a normal ATM card. You will be prompted for a PIN and then asked for the amount you want to receive. The cash will come out of the dispenser just as it does when you withdraw money from a regular bank account.

One advantage of a credit card cash advance is that you can have money in your hands in no time at all. Even if you do not have funds in your bank account, you can still use your credit card for cash. However, you have to have enough in your credit limit that is unused. Whatever credit you have left in your card, you may be able to convert into cash.

Different credit card companies may have different rules governing cash advances, but in general, you will only be allowed a fraction of your total credit credit. More so, it is important to know that the interest rate applied to a credit card cash advance is higher than is usual. It is also common for an additional fee to be charged per cash advance transaction.

For this reason, many financial advisers strongly suggest against using credit cards for cash advances. However, one cannot deny that a credit card cash advance can come in very handy, especially in times of emergency.

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