How Do You Get a Credit Card Cash Advance?


Quick Answer

A credit card cash advance can be obtained by using the card at an ATM machine, having the cash advance processed by a bank teller, or using cash advance checks, which credit card issuers may include with cardholder's monthly statements. To obtain a cash advance at an ATM, simply enter the PIN code, and select the amount of the advance, just like with a debit card.

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Full Answer

Credit cards that offer a cash advance option typically indicate a cash advance limit on cardholder's statements. The cash advance limit is always lower than the credit limit. Cash advances are also more expensive than regular credit card purchases. Unlike regular credit card purchases, cash advances come with a transaction fee. The interest rate on cash advances is also typically higher than on regular purchases. ATM fees often apply. For example, if a cardholder takes a $100 cash advance at an ATM machine, a typical transaction fee could be $10, and a typical ATM fee is $2.50.

On top of these fees, the cardholder pays a high interest rate in many cases. If the cardholder's cash advance interest rate is 24 percent, the cost of borrowing $100 for a one-month period would be $14.50. Due to the high costs of cash advances, financial experts recommend using them only in emergencies after other options have been exhausted.

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