Using debit and credit cards is a fast and easy way to pay for things. But sometimes, cash is preferred and when you need it in a pinch—your cards can still come in handy. In particular, you can even use your credit card to get cash through what’s called a cash advance. Show
By tapping into your line of credit, you can still have the benefit of borrowing money to cover an expense and still paying with physical cash if the merchant requires it. What is a cash advance?A cash advance is cash that you borrow using your credit card. “Examples of cash advances include using your credit card at an ATM, using a cash advance check provided by a card issuer or also using your credit card for certain cash-like transactions like gambling, bail bonds, wire transfers, traveler’s checks, money orders, etc,” says Ted Rossman, credit cards senior industry analyst at Bankrate.com. Keep in mind that your credit provider may only allow you to withdraw cash up to a percentage of your credit limit. For example, if your card limit is $12,000 and your cash advance limit is 20% of your credit line, you can borrow a maximum of $2,400 for a cash advance. How to get a cash advance using your credit cardIf you need a cash advance, you can withdraw money in no time with three easy steps. 1. Check your credit card agreement for cash advance detailsIf you need to use a cash advance, you should expect high fees and interest rates. So the first thing to do is read your credit card agreement to understand the cost of borrowing against your credit line. It’s also important to know repayment will work. Typically, your monthly payments will go to your credit card balance first. Any excess amount over your minimum payment will go to the account with the highest interest rate, which may be your cash advance balance. Consider paying over your credit card’s minimum amount to ensure you’re chipping away at your cash advance balance. As a result, you can avoid those compounding interest fees. 2. Determine how much funds you can withdrawLook at your credit statement to see how much you’ve already used. A good credit utilization ratio is 30% or less of your total credit line. Exceeding that limit could negatively affect your credit score. So, consider other options if you’ve surpassed 30% of your credit line’s utilization ratio. 3. Get your cash advanceYou don’t have to travel far or wait for approval to get a cash advance. There are three ways you can get a cash advance in as little as a few minutes.
Pros and cons of cash advancesCash advances can be helpful if you need cash immediately. However, its hefty interest rates and fees could end up costing you. Pros
Cons
Other options to considerA credit card cash advance may be necessary if you’re in a pinch. However, alternatives are available if you want to avoid the cash advance risks altogether. Use your own funds: Dip into your checking account or savings account to make a payment before you take a cash advance. If you don’t need cash immediately, consider using credit on your credit card instead. A cash advance should be your last resort. To avoid using cash advances in the future, build a rainy day fund in a secure, liquid savings account. Apply for a loan: A personal loan often has lower interest rates and higher borrowing amounts than cash advance limits on a credit card. If you can wait to hear back from your loan provider, consider applying for a personal loan. Borrow from others. Your first instinct may be to shy away from asking your friends and family to lend you some cash. However, asking someone to help you out may be cheaper than borrowing cash from your credit card company. More often than not, you can avoid paying any fees and interest rates as long as you promise to pay that person back. Can I get a cash advance on my credit card without a PIN?A credit card PIN may be required in the U.S. to get a cash advance at an ATM. But you may also be required to use a PIN to make certain purchases in other countries. Getting a PIN shouldn't be difficult if your card offers it, but not all cards allow you to use the same PIN for every situation.
Can you use a credit card at an ATM without PIN?No, you cannot withdraw money from an ATM or make any transaction using your credit card without entering your PIN.
Where can I use my credit card without a PIN?Yes, you can use a credit card without a PIN. You only need one if you plan to use your card for cash advances at ATMs. You may also need a PIN to make purchases at automated kiosks when traveling abroad. However, besides these two exceptions, no PIN is necessary to make a purchase with a credit card.
Does a cash advance require a PIN?Cash advances via an ATM
Getting a cash advance from an ATM requires your physical card, as well as a personal identification number (PIN) provided by your card issuer. You might also be subject to daily ATM withdrawal limits and fees similar to those imposed on checking accounts.
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