When you are in a difficult situation, a cash advance on your credit card can be a useful (albeit expensive) way to get cash quickly. But this is usually an expensive proposition, for three reasons:
Cash advance fees. This can be a lump sum of around $ 5 or $ 10 per cash advance, or up to 5% of the amount advanced. Sometimes this is a percentage with a minimum dollar amount, like 3% or $ 10, whichever is greater.
ATM or bank charges. These are enforced by the financial institution that handles the transaction – the owner of the ATM or the bank where you get your advance.
The interest. Some credit cards charge a higher interest rate for cash advances than for purchases. In addition, there is no Grace period, which means that interest starts to accrue the moment you get that money.
There aren’t many credit cards that don’t charge a cash advance fee, but they do exist. Some cards also charge the same APR on cash advances as they do on purchases, which is useful because they always start charging interest on your cash advance immediately. If you need a cash advance, a card with these features will definitely be a better deal – but remember, this is a method of last resort. Before taking your credit card to an ATM, consider alternatives to cash advances, such as low interest rate cards or promotional offers 0% APR, cards that offer the possibility of convert purchases into monthly installment plans, or personal loans.
Here are some options for credit cards with no cash advance fees.
PenFed Platinum Rewards Visa Signature® card
the PenFed Platinum Rewards Visa Signature® card does not charge a cash advance fee, but it will charge the highest interest rate on the card. Otherwise the $ 0– the annual fee card offers a signup bonus and impressive ongoing rewards:
5 points per $ 1 of gasoline at the pump and at electric vehicle charging stations.
3 points per dollar spent on supermarket, restaurant and restaurant purchases, as well as cable, satellite and other paid TV / radio / streaming services.
1 point per $ 1 on all other purchases.
There are a few drawbacks. Points are redeemable for travel, gift cards and merchandise, but no cash back. The card requires excellent credit to qualify. In addition, you must join PenFed to be eligible for the PenFed Platinum Rewards Visa Signature® card, which is not difficult but presents an additional obstacle. To join, you can open a PenFed savings account with a minimum deposit of $ 5.
Visa Chime Credit Builder Secure Credit Card
the Visa Chime Credit Builder Secure Credit Card is another possibility for those who want to create credit, and it works differently from more conventional credit cards. Instead of a security deposit, you use the card in tandem with a Chime spending account, which you open first.
From there, you transfer money from your spending account to your secure Credit Builder account, which essentially allows you to create a budget for your credit card spending. When the invoice is due, the funds are withdrawn from the secure Credit Builder account. The card does not charge any interest because it makes it impossible to spend more than the amount you transferred to the account.
n use your secured Visa Chime Credit Builder credit card at any ATM without paying interest. If you use a networked ATM, you will not be charged any fees either. You can find networked ATMs in your area in the Chime app.
DCU Visa® Platinum Secure Credit Card
the DCU Visa® Platinum Secure Credit Card offers both no cash advance fees and the same APR on cash advances that it charges for purchases. (The current APR is 11.50% Variable.) Like a secure credit card, this is an option for applicants looking to build their credit. He charges a $ 0 annual fee, but offers no ongoing rewards and requires a minimum $ 500 security deposit which is high compared to others secured credit cards.