Cash Advances
Cash advances from credit cards are usually really easy and convenient to obtain. As long as you have the available credit, and as long as your credit card company allows cash advances, it isn’t hard to get some cash from your available balance on your credit card.
If you have a personal identification number (PIN) assigned to your card then you can use an ATM to obtain cash directly from your credit card with little hassle. Simply put the card into an ATM, request a cash advance, and the next thing you know you have the cash in your hand. If you don’t know the PIN for your credit card, or you don’t have access to an ATM, or you just don’t like the idea of getting money from an ATM, you can take your credit card to any financial institution that does cash advances and request some money. Most banks and credit unions do credit card cash advances, and many of them will gladly do a cash advance for someone who isn’t even an account holder with the financial institution. It’s as easy as walking into a bank or credit union, presenting your credit card, waiting a moment for account validation, and then having the cash handed to you. You can also use a convenience check issued by your credit card company to deposit a cash advance right into your checking account.
It’s convenient, but the truth of the matter is that it can be awfully expensive.
Credit card companies usually charge a higher interest rate for cash advances than they do for purchases. This varies from one card account to another and may be different with introductory interest rates for new credit card accounts, but in most instances you will pay a much higher interest rate when obtaining a cash advance. In some cases, the difference between purchase interest rates and cash advance interest rates are startling.
There are other things you should know about cash advances from credit cards. The interest usually starts accruing immediately instead of after a grace period and there may be additional fees associated with a cash advance, such as a $25 fee just for getting the advance.
You should also keep in mind that the ATM you use to obtain your cash advance, or the financial institution that provides you with your cash advance, will probably charge you a fee too.
Read the terms and conditions issued by your credit card company to find out about the specifics associated with cash advances from your card, but chances are you will discover that cash advances are a lot more expensive than you may have thought.
