A credit card offers a useful way to buy items you need by simply swiping a card. It is also an excellent way to build up a credit record, given that you properly manage your credit utilization.
Statistics show that over 365 million active credit cards currently exist in the United States alone. There are much higher rates when looking at the global population. Sometimes, you may need cash instead of swiping your card. In these cases, you can consider a cash advance on your credit card.
There are some cards that do not offer this facility. In this post, you will discover some of the best credit card cash advance options that are on the market. We will also go over a few important factors related to getting cash advances with a credit card, including the costs, how it works, and more.
Cash Advance Credit Cards: Best Offers
There are several credit card offers on the market that gives you access to a cash advance facility. This complicates the process of picking a specific offer that works for you. When it comes to finding the best credit cards with these facilities, you have to know what to look for. Through an extensive research session, we secured a list of the six best options.
Our team looked at the most important factors, such as the costs involved per transaction, annual fees, the APR you pay, and several other elements. We compared many offers that are available to filter down to a list of six cards. These cards give you the best value when you need to get a cash advance with your credit card.
USAA Rewards Visa Signature Credit Card
The USAA Rewards Visa Signature Credit Card is a great choice for people who want to get rewarded for using the card. The card comes with a bonus of 2,500 points, which is loaded once you make your first purchase. You can also get double points when you swipe the card at restaurants and gas stations.
There is a variable APR on this card, which ranges from 12.90% up to 28.90%. While the interest rate is quite high, the card does not have any annual or foreign transaction fees. There is a 3% charge for cash advances, convenience checks, and balance transfers.
You get access to an app that allows you to easily check your balance, perform transactions, and pay your account.
PenFed Gold Visa Card
If you want a low-interest rate, then the PenFed Gold Visa Card is a great solution to consider. There is a variable APR on the card, but it starts at just 11.49% and won’t go higher than 17.99%. There is also an introductory period where you pay no interest on your purchases as long as you make on-time payments to your account.
This card does not have an annual fee and the introductory period lasts for the first 15 months.
The fees associated with balance transfers and cash advances are equal to 3% of the value of the funds you want to withdraw. It is important to note that extra credit checks may be performed should you apply for a cash advance on this particular credit card.
The card that is issued comes with a chip and tap to pay features, as well as provides compatibility with digital wallets.
DCU Visa Platinum Rewards Credit Card
Those who want to collect points based on their purchases should consider the DCU Visa Platinum Rewards Credit Card. This card offers a competitive APR and easy app-based management. The points that you collect through your purchases can be redeemed for a wide variety of items. These items include merchandise, gift cards, and even travel vouchers.
A major advantage of this card is the fact that it comes integrated with an EMV chip to protect your confidential data.
You can use this card with Samsung Pay, Google Pay, and Apple Pay. This provides an easy way to pay – by simply tapping your phone. There are no annual or balance transfer fees on this card. Plus, you do not pay any extra fees when you need to use its cash advance feature.
The APR on the credit card starts at 14.25% and is variable, as well as based on your credit profile.
PenFed Power Cash Rewards
Rewards, cash advance, and a sign-up bonus are all options that come with the PenFed Power Cash Rewards card. There are a couple of barriers that you need to consider. The PenFed Power Cash Rewards card is geared toward people who serve or served in the military.
The good news is that you can join the PenFed credit union even if you have not directly served in the military. Registration is open for relatives as well. The union also accepts members who are employed by the government of the United States.
You get 1.5% cash back rewards on all purchases you make with this credit card. If you have worked in the military directly, then they bump this reward rate up to 2%. The APR is variable, ranging from 16.49% to 17.99%. There are no annual fees associated with the credit card, but you may pay a higher APR and transaction fee for a cash advance.
DCU Visa Platinum Credit Card
If you prefer a card that offers a low-interest rate and you are not bothered about rewards, then you should look at the DCU Visa Platinum Credit Card. This is a great starter credit card and has lower criteria for entry compared to some of the other options that are available.
The internet rates on this card are variable but can start from as low as 11.50% APR. You can use the card with most mobile wallets, too.
You do not pay an annual fee on this card, and there are also no transaction costs for a cash advance. The card also gives you access to a balance transfer option, and you can later apply for an overdraft as well. The APR for a cash advance remains the same as the standard interest charged on the card.
DCU Visa Platinum Secured Credit Card
If you have a poor credit record and want to build up your score, options feel limited. You can still gain access to cash backs and improve your score with the DCU Visa Platinum Secured Credit Card.
It does come with a higher APR than the regular Platinum card from DCU, but there are generally no extensive credit checks needed. You do need a security deposit, which will also serve as the amount of available credit you get on the card.
You do not need to pay any annual fees when you swipe this particular credit card. It also comes with free cash advances and balance transfers. Since the card does not have any fees for foreign transactions, it is also a great choice for online purchases. You can also rely on the card when you travel.
What Is A Credit Card Cash Advance?
A cash advance on your credit card is someone like a loan. When you open a credit card, you get a line of credit. The amount depends on the specific credit card you are approved for, as well as your affordability.
You usually swipe the card to pay for goods and services. With a cash advance, you essentially withdraw funds from the account in the form of actual money. There are different ways in which you can access a cash advance, but the options do depend on the specific credit card that you have.
Cash Advances Via an ATM
A popular option is to use an ATM to get a cash advance with your credit card. First, make sure the card does offer a cash advance option. To use an ATM, you will need to place the physical card into the machine to start the process.
You also need the pin code for your card if you wish to make a withdrawal at an ATM. Simply choose cash withdrawal. Then, enter the amount you want to withdraw.
Make sure the amount you enter remains within the available balance.
Cash Advances Via Convenience Check
Some banks and card issuers may also offer a convenience check option for a cash advance. In this case, you can obtain a check from the bank for the cash advance that you want to take from your credit card.
You can then exchange the check for cash at an appropriate financial facility. When you cash in the check, the bank deducts the amount from your associated credit card.
In-Person Cash Advances
If you need a larger amount in the form of a cash advance, it is a good idea to visit your bank in person. This can also be a good option if you have strict daily limits on your card, as the ATM might not be able to provide you with enough cash. Note that this may come at a higher fee compared to using an ATM.
Other than this, the process will is similar to the other options you have available for a cash advance on your credit card.
How A Credit Card Cash Advance Works
Understanding how a credit card cash advance works is important, as this ensures you know what to expect throughout the process. When you need cash instead of a card to pay for something, then you may consider a cash advance.
In this case, you will essentially withdraw funds from the credit card. During this withdrawal, the funds that you request are deducted from the available balance and added to the current debt you owe the financial institution that approved the credit card.
There are often restrictions to how much you can withdraw as a cash advance, but this does not apply to every bank. With this said, you do need to check your available balance on the credit card before you decide to make a cash advance withdrawal.
The ATM or another method you use will not provide more funds than what is currently available for use on the card.
When To Consider Using A Cash Advance
It is important not to be hasty with a cash advance, as you could incur unnecessary costs. This is why you should take a few things into consideration before you decide to use a cash advance. First of all, consider the balance of your VISA or MasterCard credit card. If you try to withdraw more than you have available, then it will decline.
Additionally, you should also consult your bank about how the process works and whether they charge a higher APR for a cash advance.
There are also certain cases where a cash advance is not the best option, which is why you should talk to your bank before you go through with this process. Another important consideration is the fact that you are unlikely to obtain any type of reward when you use a cash advance.
If you have a credit card that offers rewards, consider using the funds rather than swiping the card instead of withdrawing cash.
What Are The Costs Associated With Credit Card Cash Advances?
When you assess the option to use a cash advance with your MasterCard or Visa credit card, make sure you know all of the costs that are involved in the transaction. Cash advances sometimes lead to a higher APR compared to simply swiping your credit card.
Make sure you look out for these higher APRs, as they can significantly add to the overall fees that you are going to repay on the card. Additionally, a cash advance will often not have a grace period – which means you cannot expect to pay back the amount by month’s end and not pay any interest or fees.
You will also often note that a withdrawal from a local ATM or the use of a convenience check incurs transactional fees. You can refer to your bank to determine how much you will pay for these transactions.
Alternatives to a Cash Advance on a Credit Card
While a cash advance is convenient, you should carefully weigh the pros and cons of each other. This is especially important if you already have a credit card and there are extra charges that you will incur with a cash advance.
With this said, a cash advance is not the only option you have when you are in need of emergency funds. Make sure you also explore other financing options that are available, as they might lead to lower costs on your end.
This can also help to leave a larger balance open on your credit card, which reduces your credit utilization. This is something that shows up on your credit report.
Here are a few alternatives that you can consider:
- A personal loan is a good choice if you need a specific amount of funds that do not comply with what you have available on your credit card. It is also an option to consider if you need a large amount, as you often get more flexible repayment options with a personal loan.
- You can also see if the issuer of your card has any promotions running. Sometimes, you may be able to get a cash-back bonus for performing certain tasks.
- If you have a savings account with funds in it, consider digging into these accounts to cover the expenses you have. This might reduce your savings but would not lead to higher APRs or additional fees that credit card issuers sometimes charge for cash advances.
- Another possibility is to consult friends or family to borrow the money you require, then set up a repayment agreement with them.