There’s nothing as unpleasant and worrisome as needing cash for emergencies and not having it. Nobody wants to be caught in a financial trap with no way out. Fortunately, there are solutions to unexpected financial problems, and a cash advance is one of them. Learn what a cash advance is and if it is worth consideration.
What is a Cash Advance?
A cash advance is a type of short-term loan that you can obtain from an eligible credit card via an ATM or a bank. Expressly put, a cash advance is when you borrow money from your credit card and return the sum with added interest. It is important to note that not all credit cards are considered eligible for a cash advance.
While cash advances are practical and solution-oriented, they come with exorbitant interest rates. In other words, they are expensive to maintain. On the other hand, they typically do not require a credit check and are immediately administered on the plus side. Ultimately, it is one of the quickest ways to loan money for a financial emergency.
How Does a Cash Advance Work?
Credit cards that support cash advances allow individuals to borrow a set amount of money as an advance that is repaid with interest. This means you can only borrow as much as your credit card allows; your card’s cash advance limit is not the same as your total credit limit. So before you consider a cash advance, it is wise to check your cash advance limit by checking your credit card statement. Better still, you can contact your credit card company or issuer for the said details.
When you take a cash advance, the amount is added to your credit card balance, where it accrues interest until repayment. Also, the annual percentage rate (APR) charged for a cash advance may not be the same as the APR that applies to purchases. You can confirm the stipulated APR by contacting your card issuer or by checking your credit card agreement. Be informed that a cash advance begins to accrue interest as soon as you borrow money (unlike purchases).
Where To Get a Cash Advance?
You can get a cash advance from several sources, including :
- Bank/Credit Union
You can present your credit card to your bank or a credit union you are involved with to request a cash advance. However, your bank or credit union is liable to charge additional fees outside of the prices being charged by your credit card company.
You can get a cash advance from an ATM, provided you have a credit card pin. Simply visit the nearest ATM, and input your pin to withdraw a set amount. However, ATMs have a withdrawal limit. This means that you can only use an ATM card if the withdrawal limit is within the amount you need. Now how do you get a credit card pin? Simply contact your credit card company and request one.
- Convenience Checks
Some credit card companies offer convenience checks for cash advances. You can write the amount you need and deposit or withdraw from your bank account with this check. It couldn’t be easier!
- Online Financial Platforms
Reliable online financial platforms like CashnGo offer cash advances. The beauty of this platform is that you can apply for and get a cash advance from the comfort of your home without moving an inch. Plus, the service is lightning quick. This is undoubtedly one of the best ways and places to get a rapid cash advance.
Should you Take a Cash Advance?
If you need money urgently but are short on cash or completely strapped, a credit card cash advance might be your knight in shining armour. However, cash advances are nowhere near cheap. As such, you need to properly weigh your options and situations before considering a cash advance. Only take a cash advance if there is no other alternative. Otherwise, you can consider other options like personal loans, borrowing from friends and families or getting a quick cash loan.