When you need money urgently, a cash advance can be an easy but expensive way to access funds. It's important to understand the details of a cash advance before you take one out, so you can make sure you have the necessary line of credit available and plan to pay it back as soon as possible. A cash advance is essentially a short-term loan that is granted through your credit card. You can access a cash advance at an ATM, your card's financial institution or by issuing a convenience check.
The amount of the loan is usually up to 20% or 30% of the available credit limit on the card. When you take out a cash advance, interest charges start to accrue right away. This means that the cost of a cash advance can be quite high, so it's important to consider other options before taking one out. For small amounts, using SpotMe overdraft protection for debit card purchases would result in fewer fees than a cash advance.
If you know there is a cash advance in the future, consider a credit card that offers 3% cash advances, such as the Capital One Venture card, instead of those that charge 5%. Bank of America assigns APR to direct deposit and cash advances with checks and a higher APR to banks' cash advances, including ATM transactions, over-the-counter, overdraft protection and equivalent. Payday loan requirements are basically the same to apply for in-store and online. The main difference is that you will provide a post-dated cheque for the refund, rather than providing your bank account information. Some payday loan stores may offer the option of automatic payment by bank transfer or debit card. A cash advance may seem like an easy way to get cash quickly, but it can cost you a lot of money in interest and fees.
It can also affect your credit if taking on high-interest credit card debt makes it difficult for you to keep track of your bills. If you write a check above the available cash advance limit, your credit company may not accept your check. Getting a cash advance with your credit card isn't the most ideal situation, but it can make sense when you're in a bind. Make sure you understand all of the terms and charges associated with taking out a cash advance before you do so. Consider other options such as SpotMe overdraft protection for debit card purchases or using a credit card with lower APR for cash advances.