What is a cash advance credit card?
A cash advance credit card is a type of credit card that allows the card holder to get cash from his account provided that there is remaining credit on the card and that credit card bills have been settled. This is truly a convenient feature that will help credit card users in case of an emergency however there are several setbacks with using credit card cash advance.
If you have wondered about cash advance credit card meaning before then you now know that this is a feature that will allow you to get cash out of your credit card however your cash advance will be subjected to cash advance fees. Most credit card companies could charge high fees which is one of the reasons why most members do not use this feature at all. And apart from high fees for cash advance, there are also processing fees which differ according to how your transaction was processed.
If you decide to use your cash advance credit card and ask for cash advance via an actual bank teller then you will need to pay processing fees along with cash advance fees. You may also secure cash advance via ATM but this is not free from any fees either. All in all, you will be paying a lot when you decide to use your credit card’s cash advance feature and this is not good for any type of user.
Are there any benefits in using cash advance?
The cash advance feature of a credit card is certainly useful for dire emergencies. There are stores that do not accept credit cards where you can purchase items that you may actually need every day like food items you find in flea markets and so on. In case of medical emergencies or important payments that you really need to make you need to use cash as well. Not all merchants also honor all kinds of credit cards and therefore, credit card users have no choice but to make a cash advance request. Sometimes, travelling with cash could pose a risk to tourists and businessmen and therefore, credit cards that offer cash advance features are more preferred than bringing actual cash.
To put it simply, cash advance through credit card is like carrying your own virtual wallet so you can pay in cash for items but there are several risks like cash advance processing fees that you need to endure.
What credit card users need to remember when using a cash advance credit card?
Credit card users should remember the following tips to efficiently use the credit card cash advance feature:
- If you are settled with using your cash advance feature on your credit card then you should schedule your withdrawal more efficiently so you can reduce withdrawal fees and processing fees. If you plan to use a large percentage of your credit or remaining credit for cash advance then you should appropriate a schedule for your withdrawals too.
- Plan your finances wisely so you won’t need to rely on cash advances. Remember that the high fees for this type of transaction will usually be included in your bills and you do not want to be surprised with your credit card bills the next time! Plan and take time to read about how cash advances are done and what potential fees you need to pay so you won’t be caught off guard.
- Choose the stores or shops where you could use your credit card. MasterCard for instance has millions of shops, restaurants and online merchants that are affiliated with the credit card. Plan your trips to the market, when you eat in restaurants or when you shop online so that you will always be eating and dining in places that accept your card.
- If a cash advance is inevitable then you should do all you can to complete payment on your card otherwise there will be higher fees to pay because of late payment fees. Do not forget that non-payment or failure in settling your payments on time could affect your credit standing. A good credit standing will open doors to better credit opportunities like car loans, personal bank loans and housing loans. Financial companies are now checking out their employee’s credit standing and therefore you have access to better employment opportunities!
- Choose a card that also offers additional features like points for your purchases or miles when you use your card for booking trips and accommodations. These would certainly make using your card more convenient and practical since points and miles are usually convertible to cash. So this means the more you use your cash advance credit card for shopping and cash advances (credit card rules may apply), the more you will earn points that you can redeem for cash!