Most credit cards have a cash advance option for holders in good standing that allows them to withdraw money from a credit card. Credit card cash advances are one of the more expensive ways to take out a short-term loan. Most card issuers charge far more in interest for withdrawing money from a credit card than they do for making purchases. Instead of paying exorbitant interest rates and fees on a cash advance, have you considered using a credit card with cash back rewards? So how do you go about withdrawing money using a credit card?
If you need cash immediately and have access to a bank branch, you can usually take out a cash withdrawal on the spot. In addition to the higher interest rate for cash advances, there are fees that can equal as much as 3 to 5 percent of the amount withdrawn. As you can see, it is fairly easy to withdraw money from a credit card. As long as you have the right type of account, are in good standing with your payments, and contact your bank to make sure your account is set up properly, it should be no problem.
Just remember this type of loan can be quite expensive and should be considered only as a last resort. In a non-emergency situation, consider borrowing from someone you know. An alternative to a cash advance from a credit card is to have a friend or family member wire money to you, which can usually be done in a fairly short amount of time.
As long as you have the ability to pay them back, this can be a much lower cost option to withdrawing money from a credit card. Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.
Mike Randall is most knowledgeable in the areas of credit scores and credit cards, having written on those topics and others for the past eight years. He graduated from California State University with a degree in English literature, and he has an extensive background in personal finance studies.
Opinions expressed here are ours alone, and are not provided, endorsed, or approved by any issuer. Site may be compensated through the issuer affiliate programs. There are, however, a few things to consider when it comes to using your credit card at an ATM. Discover will match ALL the cash back earned at the end of your first year, automatically.
Redeem your cash back for any amount, any time. Cash rewards never expire. Use your rewards instantly at Amazon. See application, terms and details. Share This Article Like this article on Facebook.
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