When you are in a difficult situation, a cash advance on your credit card can be a useful (although expensive) way to get some quick cash. But this is generally an expensive proposition, for three reasons:
Cash advance fees. This can be a flat rate of around $5 or $10 per cash advance, or up to 5% of the amount advanced. Sometimes it’s a percentage with a minimum dollar amount, like 3% or $10, whichever is greater.
ATM or bank fees. These are imposed by the financial institution handling the transaction – the owner of the ATM or the bank where you get your advance.
Interest. Some credit cards charge a higher interest rate for cash advances than for purchases. Moreover, there is no Grace periodwhich means that interest begins to accrue the moment you receive this money.
There aren’t many credit cards that don’t charge cash advance fees, but they do exist. Some cards also charge the same APR on advances as they do on purchases, which is helpful because they always start charging interest on your cash advance immediately. If you need a lead, a card with these features will definitely be a better deal, but remember this is a method of last resort. Before you take your credit card to an ATM, consider alternatives to cash advances, such as low interest cards or promotional offers 0% APRcards that offer the possibility of convert purchases to monthly installment plansor personal loans.
Here are some options for no-fee cash advance credit cards.
PenFed Platinum Rewards Visa Signature® Card
the PenFed Platinum Rewards Visa Signature® Card does not charge a cash advance fee, but will charge the card’s highest interest rate. Otherwise, the $0– the annual fee card offers an impressive sign-up bonus and ongoing rewards:
5 points per $1 on gas at the pump and electric vehicle charging stations.
3 points per dollar spent on purchases at supermarkets, restaurants and restaurants, cable, satellite and other pay television/radio/broadcasting services.
1 point per $1 on all other purchases.
There are a few downsides. Points are redeemable for travel, gift cards and merchandise, but not cash back. The card requires excellent credit to qualify. Additionally, 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 register, you can open a PenFed savings account with a minimum deposit of $5.
Chime Credit Builder Visa Secured Credit Card
the Chime Credit Builder Visa Secured Credit Card is another possibility for those who want to build 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 is impossible to spend more than the amount you transferred to the account.
You can use your Chime Credit Builder Visa secured credit card at any ATM without paying interest. If you use an in-network ATM, you won’t be charged any fees either. You can find networked ATMs in your area in the Chime app.
DCU Visa® Platinum Secured Credit Card
the DCU Visa® Platinum Secured Credit Card offers both no cash advance fees and the same cash advance APR it charges for purchases. (Ongoing APR is 11.50% Variable.) Like a secure credit card, this is an option for applicants looking to strengthen their credit. He charges a $0 annual fee, but offers no ongoing rewards and requires a minimum security deposit of $500, which is high compared to others secured credit cards.
The Prosper card is a unsecured credit card for those who accumulate credit. It charges a $39 annual fee, which is waived the first year if you sign up for autopay before you receive your first statement. The card is accepted at ATMs where Mastercard is accepted, and Prosper will not charge you ATM fees. However, you may be subject to fees from the owner of the ATM and you will be charged the highest interest rate on the card.
There are no sign-up bonuses or ongoing rewards, but Prosper will automatically review your account every three months to see if you qualify for a credit limit increase.