Almost everyone will need access to extra cash from time to time. You may often turn to your credit cards when you run into an unexpected issue that requires immediate payment. However, not all service providers take credit cards, and you may find yourself in a sticky situation where you need access to actual cash. Using a credit card cash advance is a great way to access extra cash you need when making charges to your credit card is not an option. With a greater understanding about what a cash advance is, you can decide if this is the financial solution you need for your current dilemma.
What Is a Cash Advance?
If you have ever thoroughly read through your credit card billing statement, you may have noticed that there are special rules and rates that apply for credit card cash advances, but you may have never had a reason to learn more about a cash advance until now. With a cash advance, you essentially use your credit card as a debit card. You can take your credit card to any approved machines, and you can input the card and your PIN into the machine to access hard cash. An alternative to this if you do not have a PIN available or if an ATM machine is not nearby is to take the credit card to an approved local bank to access the cash. Calling your credit card company’s toll-free number can provide you with more information about where to go for a cash advance. Essentially, by taking these steps, you will be able to pull hard cash out of your credit card in a similar manner as taking cash out of your checking account with your debit card.
What Is the Cost of a Cash Advance?
There are special rules that apply to credit card cash advances, and you should carefully review these rules before you proceed with this option. First, you will have access to a limited amount of cash from your credit card, and you should ensure that the available cash will meet your needs. Second, you typically have to pay a cash advance fee to your credit card company. In some cases, this is a flat rate or a percentage of the cash you borrow. In other cases, a certain dollar amount per hundred dollars borrowed will apply. The final aspect to consider is the interest rate. Even if you have a great rate on your credit card balance, your cash advance rate is often higher. This can make it difficult to repay the money in the future.
What Are Other Financing Options You Can Consider?
As you can see, a credit card cash advance may provide you with the ideal source of funding you need in an urgent situation. However, it can be expensive, and it often is not ideally convenient because of the need to find an approved bank or ATM machine and the need to have a PIN. With this in mind, you may be wondering what some of the other financing options available are. You can consider asking a friend or family member for a loan, selling some of your items online or at a pawn shop, selling your unused gift cards and more. If you have a few days or more before you need extra cash, you can use various skills to earn money. For example, you may offer to babysit your neighbor’s kids, pick up a few lawn mowing gigs and more. By taking these steps, you may be able to raise the funds you need without having to turn to a credit card cash advance.
The need for extra cash from time to time is common, and this can create a stressful situation for you. It can be a relief to know that you can easily get the cash you need from a credit card cash advance. However, before you move forward with this option, you should understand the full costs associated with doing so. You should also thoroughly examine your other options available for raising extra cash quickly. While you may not be able to raise the full amount you need, raising any additional money at all can minimize the need to take out so much money from a credit card cash advance.