moneyhelpr offers a few different articles related to withdrawing money from a credit card. The articles provide advice on how to use a credit card to withdraw cash, the pros and cons of doing so, and what to consider before doing so. Additionally, the website provides information on how to compare different credit cards to find the one that is most suitable for your needs. moneyhelpr also provides resources such as calculators and budgeting tools to help you better manage your finances.
If you’re in a bind and need cash, you might be wondering if you can withdraw money from your credit card. After all, most credit cards allow you to make purchases anywhere Mastercard or Visa are accepted—why not cash? Well, the answer is a bit complicated. In short, yes, you can withdraw cash from your credit card—but there are some major caveats that you need to be aware of before doing so. Read on to learn more.
How Withdrawing Cash From Your Credit Card Works
Withdrawing cash from your credit card is called a “cash advance,” and it’s essentially a short-term loan from your credit card issuer. Unlike purchases, which usually have a grace period of 20-30 days before interest accrues, cash advances begin accruing interest immediately—meaning you’ll start racking up hefty fees the second you take out the cash.
What’s more, most credit card issuers charge a higher APR for cash advances than they do for regular purchases. For example, if your APR for purchases is 15%, you can expect your APR for cash advances to be closer to 25%. On top of that, many issuers charge a flat fee—usually around $5 or 3% of the advance—whenever you take out a cash advance. So, if you withdrew $100 from an ATM using your credit card, you could be looking at nearly $8 in fees just for the privilege!
How to Withdraw Money From Your Credit Card
If you still decide that withdrawing cash from your credit card is the best option for your needs, there are a few different ways to do so:
• Use your credit card at an ATM: Most credit cards will work just like a debit card at an ATM, allowing you to withdraw money as needed. To find an ATM that accept your particular card, simply use the ATM locator on your issuer’s website. Once at the ATM, insert your card and enter your PIN just as you would if you were making a purchase. Then follow the prompts onscreen to complete the withdrawal. Be sure to keep track of how much money you’re taking out so that you don’t accidentally overspend!
• Get a cash advance from your bank or credit card issuer: You can also request a “cash advance check” from your issuer that can be used like a personal check to withdraw funds from your account. To do this, simply call your issuer’s customer service number and ask them to send you a cash advance check. Once it arrives, simply endorse it and take it to your bank to have the funds withdrawn from your account. This method usually takes several days (as opposed to an immediate withdrawal at an ATM), so it isn’t ideal if you’re in dire need of funds. But it is helpful to know about nonetheless!
Conclusion:
All things considered, withdrawing cash from your credit card should be considered a last resort. The fees and interest associated with cash advances make them one of the most expensive ways to access funds—so unless absolutely necessary, it’s best to avoid using this feature altogether. However, if you do find yourself in need of quick cash and have no other options available, now you know how withdrawing money from your credit card works.