Cash advances are a convenient way to access your credit card line of credit for cash, but they come with expensive fees and high interest rates. To avoid paying extra interest charges, it's important to pay your cash advance as quickly as possible. Additionally, you should try to use the credit card itself instead of taking a cash advance, and take as small a cash advance as possible. When you request a cash advance on your credit card, the bank charges you a fee based on the amount of cash you withdraw.
With Discover credit cards, you can't technically turn off cash advances completely, but you can block them. In addition, you may be able to get a larger sum, since cash advances are often capped at a few hundred dollars. Cash advances don't have a grace period like a purchase or a promotional period such as a balance transfer. This means that interest starts to accrue on the balance as soon as the transaction is completed.
You will always pay a financial charge in a cash advance, even if you pay it in full when your statement arrives. When cash advances on your card have a different interest rate than purchases or balance transfers, your monthly payment can be divided by balances, depending on how much you pay. Some convenience checks include a promotional offer, such as 0% APR for a set period of time, which can save money compared to a traditional cash advance. Plus, if you're abroad and need quick access to cash, taking a credit card cash advance can save your life.
However, as easy and convenient as it sounds, you should keep a few things in mind about cash advances. We recommend avoiding a cash advance altogether and opting for some alternative options that have better conditions. Another thing to keep in mind is that banks may consider certain purchases as cash advances, even if you don't withdraw money at an ATM or use a convenience check. You could also benefit from a debt consolidation loan, another question you should ask your lender before you apply for an expensive cash advance. Cash advance transactions can be made with your PIN at an ATM or with a convenience check mailed by your credit card company. To avoid paying extra interest charges on your cash advance, make sure to pay it off as quickly as possible and use alternative options when available.