Affordable Financing Alternatives

Why It Is Not Advisable To Get A Cash Advance + Alternatives To A Cash Advance

For first time credit card applicants, the joy of receiving your very first credit card is undeniable. You’ve unlocked a whole new world of cashback and rewards! You may be wondering, “Can I use my credit card to withdraw cash from the ATM?” Yes. Many credit cards will allow you to withdraw money from an ATM. That’s great news, right? Not really. Whether you’re a new or experienced credit card user, it pays to know that it is never advisable to withdraw cash with your credit card. Using your credit card to access funds through an ATM is making a cash advance. This translates to a short-term loan, and it’s totally different from making a withdrawal on a debit card. Typically, cash advances come with hefty fees. Even worse, lenders may perceive cash advances to mean you’re using money irresponsibly. It’s recommended that you use a debit card if you’d like to withdraw money from an ATM. However, before we get to the cons of using your credit card for a cash advance, here’s all you have to know about getting a cash advance. How To Know If Your Credit Card Could Work In An ATM? There are three possible ways to establish whether you can use your card to withdraw cash from an ATM: Cardholder statement: To know if your credit card can work in an ATM, check out the cardholder statement that came with the card. If you come across a Cash Advance Fee or Cash Advance APR, this means you can use the card to get a cash advance. Credit card statement: The second way is to look at the credit card statement. If it contains cash advance credit limit or cash advance credit line, then the former shows the maximum amount of cash you can withdraw. It’s crucial to know this so your withdrawal doesn’t exceed the limit. Often, cash advances have a smaller credit limit than the card’s credit limit for making regular purchases. Call your credit card company: If you can’t access the credit card statement or terms, you may look at the back

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