If you are in urgent need of money then there is one solution that can save you from the situation of sudden crisis and that is the cash advance solution. 

You can think of this as an instant money-providing solution where without any long and time taking procedure you can get money. If you want to know more about this incredible solution then let’s dive in. 

What is a Credit Card Cash Advance?

When using your credit card you get cash money from your credit card company it is referred to as a credit card cash advance. 

This credit card cash advance is a sort of short–term loan which you can use whenever you need money urgently. 

Although you can’t get a large sum of money and there are certain restrictions on credit card cash advance but then also it can save you in case of an emergency. 

To obtain cash advance there are the following methods that you can use, 

Cash advances via an ATM

This is one of the most used and easiest methods to get cash advances through an ATM card. If you have an ATM card then you need to visit your nearest ATM center and use your card. 

And within a minute or two you will get your credit card cash advance. 

Cash advances via convenience check

This method is the most convenient method and you will receive your cash advance in your email. Firstly you need to make a request for a cash advance to your credit card company. 

It will then send a convenience check to your registered email address which you need to deposit at your bank and you will get a cash advance from your bank. 

In-person cash advances

In this method, you will get your cash advance money in – person from your bank branch. For that, you have to show your credit card, some ID cards, and some other relevant documents and request for credit card cash advance. 

And within a few minutes, you will have your credit card cash advance money. 

How Does a Cash Advance Work?

As mentioned earlier credit card cash advance is a lucrative option in form of a short-term loan to get money from your credit card company using your credit card. 

Just like other kinds of loans here also you need to pay an interest rate on your credit card cash advance. This interest rate is very high compared to other loan options and differs from company to company. 

Because of such a high – interest rate, this loan option becomes a hard choice to make, and only in urgent need of money, you should consider it. 

With interest rate, there is a transaction fee also that you need to pay at the time of obtaining a cash advance from your credit card. 

Although just like interest rate this transaction fee also differs from company to company there are two types of transaction fee. 

The first type of transaction fee is a percentage of your cash advance amount. In this case, your transaction fee will be some percentage of your requested credit card cash advance amount as fixed by the company. 

So in this case you need to request the only required amount of money. 

The second type of transaction fee is a flat charge that is fixed by the company. In this case, you need to pay a fixed amount on your credit card cash advance request regardless of the amount of money that you are getting. 

That is why here you are advised to request money at once because you need to pay a transaction fee every time you receive a cash advance. 

How to Get a Cash Advance From a Credit Card

Getting a cash advance from your credit card is the easiest and fastest way to obtain money in case of an emergency. 

For this, you just need your credit card and there are many ways in which you will get advance cash money through your credit card. 

The first way is to get a credit card cash advance using your ATM card from any nearby ATM center. The second way is to get an in-person cash advance from any branch of your bank using your credit card. 

You will also receive a credit card cash advance from your email through a convenience check. 

How Much Does a Cash Advance Cost

A cash advance from a credit card can cost high due to its transaction fee and interest rate. Although they both depend on the credit card company but then also altogether make credit card cash advance an expensive option. 

Credit Card Cash Advance Limit

While credit card cash advance can be a saviour in times of need but there is a limit up to which only you can get cash advance. 

Again this threshold differs from company to company of credit card but you can’t request a credit card cash advance above the limit fixed by the credit card company. 

Thus it will be useful for you to know the maximum limit of your credit card cash advance so that you can request cash advance accordingly. 

How to Pay Cash Advance on a Credit Card?

As a credit card cash advance is a loan that you need to pay back after some time, there are two modes of payback. 

First is an online mode where you need to visit the official website of your credit card company and then after a few steps you can repay your cash advance using any of the online payment modes such as net banking, UPI, or mobile wallet. 

The second is the offline mode in which you have to visit the nearest branch of your credit card company and there you can repay your loan either through cash or cheques. 

However, it is advisable to repay credit card cash in advance as soon as possible because the longer you will take the more the interest rate you need to pay. 

Conclusion 

Hence we can see that although credit card cash advance is a good option in times of need then also it needs to be utilized wisely due to the restrictions and its high – cost. 

Nevertheless in the situation of crisis with no course of action in sight cash advance from a credit card can be life-saving and worth considering. 

FAQs

  1. What happens when you take a cash advance on your credit card?

When you take a cash advance on your credit card it’s just like taking a short-term loan using your credit card without any hassle of documentation. 

  1. What is one disadvantage of using credit cash to get a cash advance? 

One disadvantage of using credit cash to get a cash advance is that it cost high because of the transaction fee and high-interest rate. 


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