When you’re broke or strapped for cash, a credit card cash advance could greatly help. With this option, you will have swift cash without any collateral. It can be a quick fix for any uninvited financial trouble. Learn more about this financial aid and how to make it work for your betterment.
What Is A Credit Cash Advance?
It’s clear from the name that a credit cash advance is an amount you will get against your credit card limit. In general, one can make online payments using a credit card. But, if you need a credit cash advance, then you can use your credit card to withdraw the cash.
The cash will be charged against the credit card limit, not withdrawn from the bank account. This is preferred when one needs in-hand cash to deal with any unpredictable expenses.
This type of financial funding doesn’t require any credit checks and will help you get funds quickly. You must keep in mind that the fee and interest that you would be paying for a credit cash advance are directly proportional to the repayment length. In this way, a credit cash advance is a short-term solution.
To avail of a credit card cash facility, one needs either an ATM PIN or a convenience cheque. While there are no further pre-requisites to withdraw cash using an ATM PIN, it’s mandatory that the convenience cheque must be emailed by the bank whose credit card you’re using.
Here are a few things to know beforehand while you are availing of cash advance options:
- While you get reward points against the credit card payments, no reward points will be awarded against the credit card cash advance availed
- Using a convenience check is a less secure payment method. You will also get fewer consumer protection features
- You can’t avail this facility instantly if your ATM PIN isn’t working
- You can avail of this facility even if you don’t have physical cash in your hand. For instance, if your credit card is backed up by overdraft protection, then this amount is considered the cash advance. Also, if you avail of any wire transfer, cryptocurrency transaction, or money order facility, it’s considered a credit card cash advance.
Pros And Cons Of Credit Card Cash Advance
A credit card cash advance is a mixed bag with significant pros and cons. Before you plan to use it, learn about the advantages and disadvantages involved in the process.
You have an upper hand with credit card cash advances because:
- You can get quick financial assistance from loan service providers like the linked page. When you need immediate cash, a credit card cash advance is your best bet.
- It demands no collateral in return. So, your assets will be in your possession even if you borrow money.
- No credit history is taken into consideration. So, you can avail a loan even if you have a bad credit history.
- Less paperwork is involved. No credit history check will be done, so the paperwork isn’t that extensive.
But, this isn’t always a piece of cake. It has certain downsides.
For instance:
- You’ll have an exorbitant APR rate and processing fee
- There is no grace period granted. You’ll be liable to pay interest from the day you availed of the facility
Limit Of Credit Card Cash
When you’re planning to get a credit cash advance, the first thing you should know about the limit. You can only withdraw the cash up to the cash advance limit on your credit card. It’s pre-defined and is less than the credit limit granted.
If you don’t know what the credit card cash limit is, simply log in to your online account or check the credit card statement. The amount will be mentioned there. Check it before withdrawing cash from your credit card.
While you’re trying to avail of this facility, keep in mind that it’s not free. You have to pay a higher fee or processing fee for this transaction. The fee charged is decided as per the cash advance. At times, it could be a flat fee, applicable to every credit card cash advance transaction. In general, the processing fee is 5%. But, it’s not the upper limit. You must check the credit card terms regarding this facility.
Final Say
There are multiple ways to fix an untimely money crunch, and a credit card cash advance is one of them. Without any credit card check, this facility is here to have your back even in adverse situations. The processing is also super quick. But, you have to keep your senses awake while availing of this facility.