Cash Advance Credit Cards

WATCH OUT using a credit card for a cash advance!!!

Using a credit card for cash advances can be expensive propositions. We would recommend that you avoide this option altogether. While cash advances using your credit card can be convenient for quick cash at an ATM, many times the interest rate is double your regular interest rate. Nearly every credit card will offer cash advances at a higher rate of interest than your regular credit card rate.

Most cash advance rates are in the high teens to low twenties.

Rather, a more economical cash advance or loan method is to sign-up for a Discover More card, Chase Platinum card or Bank of America Platinum Plus and wait for the bank to send you convenience checks. As you can already assume, they want you to carry a balance - one way to do this is to transfer from other credit cards or to use a convenience check to perform a home project, go on a vacation or use toward a large expenditure.

Nearly 100% of the time, convenience checks will come with a very low promotional interest rate, such as 0% for 12 months and they work exactly the same way as a cash advance. The only stipulation is that you may have to wait for a week for the check to clear. A potential downside is that they are not available through ATM withdrawal, like cash advances on credit cards. Some banks charge only a minimum amount each month on the interest, while others charge 2% to 3% of the principle balance - make sure to read the terms and conditions before applying. Normally from a fee standpoint, convenience checks are treated the same as balance transfers.