- If you need a large amount of cash quickly and don’t have money in your bank account, a credit card cash advance can help you in a pinch. It’s also a faster way to get money than trying to take out a traditional loan.
- A cash advance might be a good option if you need to make a large payment on a tight timeframe to someone who can't accept a credit card. For example, if rent is due, a cash advance could help you avoid late fees or pressure from your landlord.
- With a cash advance, you’ll usually start accruing interest immediately. This is an important distinction from buying something with a credit card when you don't start accruing interest until after the payment due date.
- If you use an ATM to take out a cash advance, you’ll likely have to pay an ATM fee as well. The exact amount will vary depending on the ATM operator.
Credit card cash advances can be useful, but they are just one option when it comes to getting cash quickly. It’s important to assess the reasons you need access to cash.
One way to assess if it’s a good idea is if you can pay it back in a short amount of time. For instance, if you know your paycheck will be deposited in a few days, you can pay off the cash advance quickly.
It’s also essential to make sure you understand the terms of a withdrawal before you make it.