If you need cash and you figured out that taking a cash advance from your credit card is the way to go, you can request a PIN from your card’s issuer so that you can visit an ATM and withdraw some cash just like a regular debit card.
You can also visit the bank to make withdrawals or use convenience checks that you write for yourself to cash them or deposit them into your bank account.
How to Minimize Fees and Interests on Cash Advances
Cash advances are convenient because they provide quick funding without the added legwork of loan applications and credit checks. However, this type of short-term loan usually involves steep interest rates and fees. Here are some tips on how you can make the most of your cash advance:
Know Your Cash Advance Limit
You can know your cash advance limit by reading the terms and conditions that usually come with your credit card. You can also check the terms online or call the bank service number for information on this. By doing this, you can avoid incurring over the limit charges and higher interest rates, especially if you are withdrawing from an ATM that does not issue any warning about these charges.
Borrow as Little as Possible
Remember that cash advances have high APRs, and the more you withdraw, the more interest you will pay. So take out only what you urgently need to pay less on interest.
Avoid Taking Out Multiple Cash Advances
Aside from interests, there are also fees involved in taking cash advances, such as ATM fees and bank fees. If you are going to take out multiple cash advances, this will result in multiple fees as well. Make sure to take only a single cash advance to minimize these fees.
Pay off Cash Advances as Fast as You Can
The interest for cash advances is immediately applied when you make the withdrawal. There are no grace periods for cash advances. This is the big difference between having a cash advance and putting the charge on your credit card. Make sure to pay off this debt as soon and as fast as possible to lessen the incurred interest.
Once you are sure that taking a cash advance on your credit card is the best way to address your urgent need, there are several tips on minimizing fees and interests on your loan.
At the end of the day, a cash advance is just a short-term loan that you take against your credit line, and the less you borrow, the less interest and fees you’re going to pay. You should also make a repayment plan that pays off this loan as fast as possible to lessen the interest incurred. Put in extra money whenever you have some to lessen your principal over time.