Financial Education: What is a Credit Card Cash Advance?

We’ve all been there before—you encounter a financial term that you aren’t exactly sure about. When it comes to finances and particularly credit cards, there’s no shortage of rules and terms that can seem opaque and tricky. A credit card cash advance is one of those terms. Luckily, it’s a more straightforward concept than it seems.

You may be confident with using your credit card and knowing the rules, but you might be unsure about some of the particular ways you can use your credit card that don’t fall under the usual options. Rather than risk running afoul of some obscure credit card protocols, we’ve got the details on one popular but not always well understood credit card usage—the cash advance.

If you intend to use your credit card for a cash advance, it’s important to know what this entails and what special considerations can go along with this usage.

The Basics About a Credit Card Cash Advance

Sometimes you need cash, and you need it quick. Everyone’s been there, which is why credit cards offer an option for turning your credit into cash.

The simplest way to understand what a credit card cash advance is just requires thinking about it in terms of loans. When you take out a cash advance on your credit card, you’re essentially taking out a mini-loan. Your credit card will allow you to take the money that would normally be spent on purchasing a service or goods and instead allow you to receive that money directly.

However, just like a loan, that money will need to be paid back and it’s not completely free.

What You Should Know About Using a Credit Card Cash Advance

As the saying goes, nothing in life is free, including a cash advance. It’s always important to know the details of your agreement to use any particular company’s credit card. Whether it’s being aware of your APR (annual percentage rate) or any transaction fees, you won’t want to be hit with a surprise cost just because you needed some cash for an emergency expense.

Some of the extra costs you might want to expect in the event that you use your credit card for a cash advance are:

  • Cash advance fees
  • ATM fees
  • Special interest rates for cash advances

By knowing the ins and outs of how your particular credit card handles cash advances, you’ll be able to plan for any extra costs associated with using this function. Just make sure you check out the details about how your credit card manages providing cash advances.

How to Receive a Credit Card Cash Advance

Don’t worry, we’ll keep it short here—receiving a credit card cash advance is surprisingly simple. The easiest way to receive your cash advance is by bringing your credit card to a location equipped to process the transaction, such as Currency Exchange.

The first step is to find a location nearest you. Next, you’ll need to bring your credit card with you—just be sure that your card is from a major provider and pin-based. If you’ve got those basics covered, all you’ll need to do is swipe your card, input your details, and the best part, collect your cash advance.

When to Use a Cash Advance

You might be wondering why you’d need a cash advance or when is the appropriate time to use this function. While this answer can vary for different people depending on their needs, a cash advance is generally a good option if you find yourself in certain situations.

In the case that you’re in an emergency and need to make a purchase at a cash-only location, a credit card cash advance is the perfect solution. Yet, even if you’re not in an emergency, a cash advance can be useful. Don’t forget to bring cash for those purchases that don’t accept cards or checks. Stopping by your local Currency Exchange to pull out some cash is a great option. It’s also important to consider whether it fits in your budget to repay the amount of your cash advance plus any fees or interest.

No matter your financial needs, Currency Exchange is here to help. Just stop by any of our locations and we’ll assist you with your credit card cash advance as quickly as you need it.

credit card cash advance

With over 350 locations, many open nights, weekends, and holidays (and several stores with 24/7 availability), you can rest easy knowing your financial needs can be taken care of when you need them most. We’re in the heart of every community. Don’t believe us? See for yourself.