Cash advance credit cards are small loans similar to payday loans. You can use it to borrow a few hundred dollars in minutes until your next paycheck. If your credit card issuer offers you 0% APR and a $0 fee, you can use this option in emergencies.
However, more often than not, such loans have an APR of up to 20%, which is a high cost. Also, a few hundred dollars is not always enough to get out of a difficult situation, so you may want to consider alternatives to this option.
Cash Advance Credit Cards: Best Offers
Many companies and apps in the U.S. financial market offer cash advances, but their offers are usually costly. In this article, we have compiled several options with the best interest rates and low fees so that you can choose the best credit card cash advance.
Simmons Visa®
If you have an excellent credit score and are looking for a card with 0% APR on cash advances, then you need a Simmons Visa®. It’s ideal for many purposes, including transferring a balance from a high-interest card.
Simmons Visa® has a 0% APR for the first 12 months of card use, increasing to 14.00% – 22.00%. In addition, the card has no annual fees and up to $1,000,000 in travel accident insurance.
Its primary disadvantage is cash advance fees, the amount of which depends on the amount borrowed. However, because of the 0% APR, it will still be one of the most profitable options on the market for many borrowers who urgently need $100-200.
PenFed Gold Visa® Card
This option is appropriate for people whose score exceeds 750. If you want a small cash advance of up to $250, you will need to pay a 17.99% APR and a $0 fee.
Among the main advantages of this option, users note the following:
- You will not have to pay an annual fee.
- During the first 15 months of using the card, its APR is 0%.
- Even after the intro APR period ends, you’ll be able to use your credit at just 17.99%, which is less than many competitors.
- If you make a balance transfer from other credit cards during the first 90 days of card use, you will not have to pay a balance transfer fee.
The downside is that not all users can get a PenFed membership for free. But otherwise, it is one of the best options for cash advances.
Navy Federal Credit Union Platinum Card
To get a credit card from this credit union, you must be involved in the military or have an immediate family member (parents, partner) who works in it. This is the main disadvantage of this option.
For anyone who can qualify, this is an excellent offer because:
- You can get it even with a good credit score of 670 points.
- Its annual fee is 0%, and 0% APR is valid for the first 12 months.
- You will not have to pay balance transfer fees the first year you use the card.
- The minimum APR from the second year of use is 9%, less than many competitors.
This is one of the best options for cash advances because the APR is 0%, as is the fee.
DCU Visa® Platinum Rewards Credit Card
This card is usually recommended to those who want favorable rates on cash advances and receive cashback for expenses in specific categories. However, despite its name, it does not offer any rewards; it doesn’t take any annual fee
Of course, this credit card has many features and benefits:
- Optional overdraft protection.
- No annual fee.
- No balance transfer or transaction fee.
- No cash advance fee.
The main disadvantage of this option is that it has no regular APR of 0%. In addition, you will have to pay the exact regular APR of 8.50% to 18% for cash advances, and the late payment fee is as high as $35.
This credit card is best not used as a primary card, but if you want $0 fee cash advances with a good credit score, it may work great for you.
Navy Federal Credit Union Go Rewards Visa
Another card with a $0 annual fee may be available to Navy Federal Credit Union members. Its intro APR is 1.99% for the first six months, and the regular APR is 11.99% – 18% (V) after that period.
As for cash advances, you can get them with an APR of 13.99% – 18% and a fee of $0.5. In addition, the card allows you to earn cashback for expenses in restaurants, gas stations, stores, and supermarkets.
The only significant disadvantage of this card is that only Navy Federal Credit Union members, i.e., military personnel and their immediate family members, can get it. Otherwise, it is an excellent option for anyone with a good credit score.
DCU Visa® Platinum Secured Credit Card
This option is for those who already have a DCU savings account or are ready to open one. It allows you to borrow only the amount you have in your DCU savings account at a 14.50% variable APR.
The main advantage of this offer is that even those with a low credit score can take advantage of it. In addition, you can get no fees cash advances at an APR of 14.5% (variable) with this card and transfer debt from other credit cards with $0 fees, use car insurance, or travel insurance.
If you are a credit union member, the DCU Visa® Platinum Secured Credit Card may be an excellent option to save hundreds of dollars on various fees. The important thing is that you can fund your savings account with at least $500, an essential requirement of the credit union.
What a Credit Card Cash Advance Is
A cash advance is a small loan of a few hundred dollars that you can get before your next paycheck. Most often, borrowers download special applications that provide such loans and lend money to them at a high APR.
However, you can avoid these costly fees and interest by using a credit card cash advance. You may already have one in your wallet; you just need to go to your account and see if the cash advances feature available.
The main advantage of these types of loans is that they can be obtained offline and online:
- If you have your credit card, you can walk up to almost any ATM, enter your pin code and get a loan.
- Also, if your credit card issuer allows, you can borrow money over the phone by verifying your identity.
- You can also request a loan directly if you have a mobile app with credit card access.
- The last option is to come to the bank and provide an ID. The bank officer will check your documents and give you the needed amount.
However, it is essential to note that sometimes banks limit the number of cash advances to $50 per day, which may make this option unsuitable for everyone. In addition, not all financial institutions offer 0% APR on such loans, so you will need to read our article to learn about the best credit cards with cash advances.
How a Credit Card Cash Advance Works
Before going to a bank or ATM to get a cash advance, go to your app and see if this feature is available. If it is, you should check on what terms you can use it, how much will be available to you (usually $50-$250), and for how long.
Next, you can choose how you want to cash advance. If you have selected ATM, then basically all you have to do is withdraw money as you usually do with debit cards. You will enter a pin-code, choose the amount you want and cash out.
You usually get this credit for 2-4 weeks until your next paycheck. Then, the money is automatically deducted, along with interest and fees, from your account on the due date.
This is an excellent option for those whose credit cards offer 0% APR for cash advances. However, it is crucial to understand that this method is best used only in emergencies and done as infrequently as possible.
When to Consider Credit Card Cash Advance
Describe the situation in which a credit card cash advance is needed and mention steps to be taken before getting a cash advance.
Such a loan can get you out of a problematic situation within minutes. But, unfortunately, no instant cash app guarantees that you will receive funds within one hour, much less in cash, whereas you can walk up to the nearest ATM and get a credit card cash advance in minutes.
Before using this service, you should consider the following factors:
- What terms and conditions does your bank offer?
Look up your credit card agreement and find information on all the fees you must pay. Also, find out how much you can borrow and how long you have to pay it back.
- What documents do you need?
Many credit card issuers will only allow you to get a loan at any bank branch if you have a physical credit card and ID.
Remember that such loans cannot be a long-term solution; they are needed for emergencies, as they are often costly.
Is Credit Card Cash Advance Expensive?
Such loans are expensive because you only borrow a few hundred dollars, but you pay APR, transaction fees, and other additional fees from the first day you receive the money (there is no grace period).
Standard credit cards offer an APR of 16-18% and a 5% fee for cash advances. So let’s calculate together how much it would cost to borrow $200 for 21 days through an ATM:
- At the ATM, you will also pay a $3 commission and a $5 transaction fee.
- If your interest rate is 18% per year, that’s 0.05% per day. So, for 21 days, you will pay 0.9% of the amount of cash advance, which is $1.8.
- Add another 5% fee to that number, and you get an extra $10.
As a result, you will pay $19.8 for using $200 for 21 days. On such a small amount this seems like a small fee, but it is almost 10% of the original loan.
Alternatives to a Cash Advance for a Credit Card
If your credit card payment service of cash advances is expensive or if you want to borrow a large sum of money, you can use the following alternatives:
- A personal loan.
This option is best for those who need a large sum of money to borrow for several years. Lenders usually offer amounts from $1,000 to $100,000 at an APR of 5% to 36%.
To get such a loan with good terms, you will need to have a credit score of 670 or higher. In addition, you should take into account that the whole process of getting the money will take several days.
- Get early access to your paycheck.
If you want to avoid paying fees and APRs to banks or other financial institutions, you don’t have to borrow money from them. Instead, you can borrow it from yourself.
Many companies and apps offer services to get money from your paycheck before payday. All you need to get such a cash advance is official employment, give the app access to your bank account, and pay a small tip. Using a payday cash advance app can provide quick access to funds, but be sure to understand the terms and potential fees involved.
This option is more advantageous than a cash advance credit card, but it is essential to remember that you can usually request a withdrawal only 2-3 days before your paycheck, not before.
- Borrowing from family or friends.
Of course, borrowing money from acquaintances is not the best strategy because you can ruin your relationship with them if you don’t pay back the debt on time. However, it is the best option for those who have expensive credit card cash advances or don’t have time to wait for a personal loan application to be approved.
- Using savings for an emergency fund.
Try to set aside some money from your paycheck to create an emergency fund of several thousand dollars. This way, you can avoid the financial stress and many problems that come with using payday loans or cash advances.
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