Thinking of getting a Credit card cash advance? Here are 5 things you should know before doing it!

Thinking of getting a Credit card cash advance? Here are 5 things you should know before doing it!

Credit cards have a lot of benefits. One of them is that they can be a great source of cash if you need it. But there are some very important things you should know before getting a cash advance. Bonus track: Why you should choose a 0% APR credit card? The answer lies beneath! 

A credit card cash advance will allow you to withdraw a percentage of your credit limit in hard cash. You can either get it at the bank or, if you have a PIN, from an ATM. However, a cash advance is not the same as swiping your card to make a purchase. Here’s what you need to know:

1. Make sure your card is eligible

Not all cards will allow you to get a cash advance. Get your credit card agreement and read carefully. You will find all the answers you are looking for there. If you don’t have it with you, you can look it up online or request a copy from your bank. 

Once you have the agreement, go to the credit line section, where you will see two numbers: one is your total credit line, and the other one is your cash advance credit line. This will be a portion of your total line.

2. Request your PIN

In order to access your cash advance line, you need to have a PIN. There are two ways of getting one, depending on your credit card provider. Some banks will allow you to do this online, while some others may require you to call customer service in order to request a PIN. Either way, your PIN will arrive in the mail.

3. Mind the fees

Getting a cash advance is not the same as swiping your card. There are different fees that apply that you need to be aware of in order to avoid surprises in your credit card statement.

Depending on your card, you can either pay a flat fee or a percentage of the cash withdrawal transaction. Most companies charge around 5% of the transaction or a fee of $10. The one that applies is usually the greatest.

4. Mind the ATM fee

Not only your credit card issuer will charge you a fee for a cash advance transaction, but also there will be an ATM fee. If you use an ATM outside your network, the fee can range between $2 and $10 per transaction, so you need to be really careful when withdrawing cash.

5. Mind the interest rate

A credit card cash advance comes with a higher interest rate than your total credit line. Even if your card offers a 0% interest rate at the beginning, it likely does not apply to cash advances.


If you're looking for rewards on big purchases, 0% APR credit cards should be your first choice. Not only will some of them let you pay them off slowly, but you can also receive rewards and sometimes even avoid being charged any interest. If you're only interested in rewards, you should compare these balance transfer cards with other rewards credit cards.

You'll benefit the most from big purchases with these cards because you'll receive more rewards, which are calculated according to the amount that you spend. As some allow you to skip interest payments, the total you'll end up paying will be much lower. You may also reach the needed money to earn a sign-up or welcome bonus.

These cards are also very useful when it comes to paying off debt. If you don't keep spending money, it can be very beneficial to consolidate big amounts of debts with high-interest rates through an 0% APR credit card. As a result, you'll find yourself paying much less money in the long term, due to the lack of interest in the new payments.

Keep in mind that there's the possibility that the card you chose charges a balance transfer fee. In most cases, however, it's much less than what you'd pay without 0% APR on balance transfers. Still, it's important to consider this fee to see what your exact situation is, as well as eventual late fees or over-limit fees.

Another thing to check is how long the 0% APR will last. This changes from card to card, but it's key to know in advance whether your plans to pay off your debt or make a big purchase will be achieved or not. This often depends on how many months you'll profit from a lack of interest.

To conclude, keep in mind that, for everything to go as planned, you'll need to control your spending. You can do this by creating a budget and following it, or optimizing your spending.

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