Cash Advance: What You Need to Look For in Your Credit Card’s Fine Print

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A credit card cash advance is a short-term loan taken against your line of credit. However, this transaction comes at an expensive cost. Aside from repaying the money you’ve taken out, you’ll most likely pay a steep annual percentage rate (APR) on your balance.

This short-term loan allows you to use your credit card at an ATM or a bank to get immediate cash.

Think of it as “buying” cash instead of services or goods. Sure, it’s commodious, but it’s downright expensive. So, it’s crucial to read your credit card fine print to find information about potential penalties, fees, and rates you may expose yourself to while using the card.

Below are some things you need to look for in your credit card fine print.

Factors That Can Impact The Cost Of Credit Card Advances

Unlike using your credit card to spend the same amount online or in-store, a credit cash advance will always be costly. The main reason for this is that cash advances usually start adding interest rates immediately.

On the other hand, interest charges don’t typically accumulate on purchase transactions after the grace period. How much you pay for a cash advance will vary greatly on your credit card fine print.

The following are the things on your fine print you need to keep a close eye to:

How Does A Credit Card Cash Advance Work?

There are a few ways to take out a credit card cash advance:

How A Credit Card Cash Advance Impacts Your Credit Score

While a cash advance doesn’t actually impact your credit score, the balance will be added to your outstanding debt, which can damage your credit score, specifically if it shoves your credit utilization ratio (the amount you owe on all your accounts) too high.

A high credit utilization ratio can adversely affect your credit score, particularly once it towers over 30%. Also, a credit card cash advance can hurt your credit score if you can’t manage to stay on top of your bills.

Remember that making timely payments is a vital factor in your credit score. Missing or late payments could have an undesirable effect.


Consider the following if poor credit cash advance loans aren’t suitable for you:

Final Words

A credit card cash advance might seem like a great solution when you need money in a hurry. However, remember that cash advances come at a high price. With that said, make sure to assess all other alternatives and don’t rush into this decision. Also, ensure that you understand all the accompanying costs involved and develop a plan to pay off the advance quickly.

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