Cash advance is a good way to get advance using a credit card. Using the option, cash may be obtained in emergency situations.
Few ways to obtain cash using credit cards
There are numerous ways in which cash may be obtained using credit cards. Few of them include:
Cash advances using credit cards can easily be obtained by withdrawing through ATM’s. However, in order to withdraw money using this option, it is essential to set a credit card PIN. In order to set the PIN, it is advisable to contact the concerned financial institution. There is a limit to the amount of cash which may be withdrawn from ATM’s using a credit card.
Cash advance through the concerned financial institution
Cash advances using credit cards can also be obtained through the bank. This can easily be done by visiting the bank and informing the teller about your intentions. However, the amount of money withdrawn cannot exceed the cash advance limit set on the credit card.
Convenience checks are quite different from regular checks. The convenience checks are tied to the credit cards instead of the checking account. A self-drawn convenience check may be used for withdrawing money from the credit card.
The banks charge a fee on withdrawal of money using convenience checks. However, pulling out money using convenience checks is not subject to the restrictions and limits, which are imposed on credit card withdrawals made through the financial institution or ATM. However, the fee and interest rate may be higher when compared with the other two options.
Transfer of funds
Cash advances can also be obtained by transferring funds from the credit card to some other savings or checking account. This may be done by visiting the bank branch or online. For more information about such types of cash advances, sources like LittleLoans may be used.
An easy way to obtain cash advances from credit cards is through cash backs. Purchases may be made at various stores using the credit card. Once the purchase has been made, cash back may be requested. Though interest is payable on cash backs, which are considered to be cash advances, users are saved from paying ATM transaction fees.
Shopping for someone else
Cash can be obtained from credit cards by making purchases on behalf of other people and receiving cash from them in return. This is a good way to receive cash from credit cards as users are saved from paying ATM fee and interest charges.
There are numerous ways in which you may get cash through credit cards. However, these cash advances come with certain fees and higher rates of interest. It is hence advisable to consider the following aspects while opting for cash advances:
- It is advisable to carefully read the credit card agreement in order to understand the fees and terms.
- It is recommended to use credit card tied cash advances only in emergency situations.
- It is advisable to make an emergency fund in order to reduce dependency on cash advances.
- It is advisable to check the limit for cash advances as it is usually lower than the limit of the credit card.
Cash advances using credit cards can be obtained in numerous ways. Since they prove to be costly transactions, it is advisable to use the option only in emergency situations.