How To Get Cash from A Credit Card With Cash Advance or Cash Backs?

Credit cards can be used to make various purchases both online and in-store as well as to transfer funds to prepaid cards, other bank accounts, etc. However, getting a cash from credit card seems to be a distant concept. To let you know the best possibilities of how to get cash from a credit card, we have brought before you all you need to know about fees and associated interest rates with the credit cards. 

How To Get Cash from A Credit Card?

A credit card is one of the payment cards issued by authorized financial institutions to their customers. You can think of it as a beginning of a customer banking life-cycle that allows them to carry out seamless transactions. 

The credit cards are linked to your bank accounts holding your funds and can be used to withdraw money in different ways. There are specific transaction limits, or let’s say pre-approved limits to abide by to pay using your credit cards. 

Several facets that revolve around using the credit card include the issuing banks, merchants, and payment processing networks. All the banks almost issue credit cards and allow their usage for various purposes.

The transaction limits are devised by the card-issuing bank depending upon your income, profile, and also credit history. 

Credit cards have indeed replaced the traditional habit of carrying an extensive amount of cash all along. But let’s just be honest and say that it does not seem suitable under all circumstances. So, let’s just step out of the comfort zone and explore a whole new dimension associated with credit cards usage. 

What if you need instant cash and your respective location doesn’t allow direct payment? By far we have come across the two most common approaches to cover in our guide today. 

Cash Advance from a Credit Card 

A cash advance is the simplest process of withdrawing money from your credit card. You can use it at any of the ATM locations and get the desired amount of cash from there. Whether it is about covering emergency funds or paying someone by cash, a cash advance can be a good option. 

Getting a cash advance from a credit card has its benefits and drawbacks too. While it is a highly convenient and smooth way of getting access to cash, it is not free. Cash advances carry a fee of around 3% to 5% of the advance amount. 

Cash advances typically have a small portion of the credit limit and have higher interest rates. You won’t get any grace period for paying off the charged interest rate which is normally 20%-25% APR. 

Please keep in mind that if you don’t pay off the cash advance in time, it can also lead to a negative impact on your credit score. The daily accruement of the account balance and interest can lead to a catastrophic drop in the credit score. 

How Does Cash Advance Work? 

Cash advances can be a preferred way of getting cash using a credit card as long as you have an eagle’s eye to monitor the process. However, cash advances from credit cards work differently than borrowing money from Chime as cash advance or through other platforms. You can get into a serious lump of debts if not handled properly as the interest rates are higher than routine purchases. 

Therefore, it is quintessential to have a proper look at your credit card agreement and online account. This helps you better understand the policies of your card and whether or not it is eligible for a cash advance. 

Getting a cash advance from a credit card is a straightforward process. Here is how you can get access to cash using a credit card. 

• First, come first, check the account statement to know the available amount of money you can withdraw. 
• Every card has a different cash advance limit so please pay attention to what your card allows. 
• Once done, you can go to any of the ATM locations and insert your credit card in the deposit slot. 
• Next, enter the security PIN of your credit card to proceed. You can set it on your own or might as well have to call the customer service of your card company. 
• Click on either the Cash withdrawal or Cash advance option here. 
• It displays three options before you i.e., Credit, Checking, or Debit. 
• From here, click on the option of Credit. 
• Then enter the amount you want to withdraw from the credit card. 
• Agree to accept the fees associated with the transaction you are making using a credit card at an ATM. 
• Lastly, just complete the transaction and take out your cash. 

You can also use credit card convenience checks to perform a cash advance. Moreover, several credit card issuers also support photo ID and credit cards to let you perform cash advances instead of using a security PIN. 

Best Credit Cards to Get Cash Advance

Cash advances, as discussed earlier, have associated fees along so it is better to choose a credit card with a lower cash advance fee. Unlucky to say that you cannot completely escape the fee, but if you want to then you can opt for credit unions. Some of the best credit cards to use to get the cash advance are listed below. 

1. Capital One Platinum Credit Card 

Capital One Platinum Credit Card is one of the best options if you are looking for low-fee cash advance cards. You can get these cards within a wide range of credit scores and it offers a somewhat low cash advance fee. 

The regular APR is 29.99% (Variable) and you won’t have to pay any annual fees for card maintenance. Whether you have an average, fair, or limited credit score, applying for Capital One Platinum Credit Card shouldn’t be a problem. 

You are automatically considered for a higher credit line within six months. In addition to this, you can also get fraud coverage under circumstances of your card getting stolen or lost. Capital One banking also provides you with an online platform for carrying out transactions. 

Paying online, by check, or physically at the stores using this credit card is a piece of cake. Without any fee, you can get the extravagant perks of a cash advance credit card at Capital One. You can simply hover your card over the contactless reader and handle your payments. 

The highlighting features include Intro (Purchases) N/A, Intro (Transfers) N/A, Regular APR 26.99%, and $0 Annual Fee. 

2. Capital One Venture Rewards Credit Cards

Another top option to consider for cash advance credit cards is the Capital One Venture Rewards Credit Cards. Apart from other available options, it is one of the reasonable choices for everyday travel spending where you can reimburse any travel purchase.

The regular APR is 15.99% to 23.99% (Variable) on this card and you can also enjoy a one-time bonus on spending $3000 on purchases made within three months. Please note that these should be counted from the date of account opening and equal to $600 in travel. 

Not only this, but it also enables you to earn unlimited 2X miles on daily purchases. The icing on the top is that miles don’t expire as long as your account is valid and there is also no limit on how many miles you can earn. 

Another platform to earn the best package on miles is through Capital One Travel. Get 5X miles on the hotels and rental cars and make your trip perfect! Furthermore, you can also receive up to a $100 credit for Global Entry or the TSA PreCheck. 

The highlighting features include Intro (Purchases) N/A, Intro (Transfers) N/A, Regular APR 15.99-23.99%, $95 Annual Fee, and Excellent or Good credit score. 

3. Chase Freedom Unlimited 

Chase Freedom Unlimited has comparatively higher fees than others, but what makes it stand out from others is the rewards potential. While many cash advance credit cards typically don’t let you earn, this one does to some extent. 

With Chase Freedom Unlimited, you can earn additional 1.5% cash back on all purchases up to $20000 in the first year with up to $300 cash back. In addition, you can enjoy 0% Intro APR for the 15 months on balance transfers and purchases. 

It doesn’t require any minimum to let you redeem for the cash back. The cash back rewards do not expire as long as your account is active. In addition, you can either receive a statement credit or direct deposit in the US savings and checking account. 

The Freedom Unlimited card doesn’t charge you any monthly fees despite the supreme features it offers. On the travel purchase using Chase Ultimate Rewards, you can earn 6.5% cash back, redeem the rewards, and earn 4.5% cash back on restaurants, pharmacies, and much more. 

Once you are past the first year or say $20000 spending, you can enjoy 5% cash back on Chase travel through Ultimate Rewards. It offers a 3% cash back on pharmacy purchases and restaurant dining and a never-ending 1.5% cash back on other purchases. 

The highlighting features include 0% Intro APR on Purchases for 15 months, 0% Intro APR on Balance Transfers for 15 months, Regular APR is 14.99-23.74%, $0 Annual Fee, and Excellent or Good credit score. 

Cash Back Rewards from Credit Card 

If cash advances do not seem a suitable option to you, another way to get cash using a credit card is through the cash back rewards. Since many stores give most cash backs on purchases, you can get sizeable returns with the right credit cards to fit your spending patterns. 

No matter what credit profile you hold, cash back credit cards are available for all. All you need to do is get your cash back deposited into the qualifying bank account. Typically cash back rewards are redeemed as statement credit which assists you in paying the credit card balance. 

To get the cash back rewards from a credit card, you can also mail the physical checks to the concerned authority. 

How Do Cash Back Rewards Work?

Selecting the right cards with maximum perks is the major step. There are several cash back rewards cards that you can opt for to redeem the cash back rewards. Yet, it becomes necessary to filter out and compare the best available ones. 

You can redeem your cash back through the online credit card account, but it mostly depends on the credit card issuer. You need to have at least $25 worth of rewards to redeem. 

Cash back credit cards are often customizable and you begin by choosing a cash back credit card, make purchases with the card, and lastly redeem the cash back. There are two key styles of the cash back rewards cards which we will be talking about. 

As for the first one, it has a whole bunch of unlimited cash back that too available at a single rate. Talking about a generic range, it lies somewhere in between 1.5% to 2% on whatever purchase you make. 

On the other hand, we have its second kind allowing you a lower unlimited rate on various purchases unlike the first one. It is at most 1% on any purchase, but to compensate in one way or the other, it offers higher cash back rates in a few bonus categories. 

Best Credit Cards to Get Cash Back Rewards

Getting more in less is the top requirement for every customer. You need to track your spending and the locations before choosing a credit card to get cash through the cash back rewards. Some of the best credit cards offering a high unlimited rate and helping you optimize the cash back earnings are discussed below. 

1. Discover it Secured Credit Card 

Here is when you can brush off all the worries of having poor credit off your chest. Discover it Secured Credit Card is an ideal option for newbies and those who are rebuilding their credit score. If you wish to avail of one, you can open the account only with a minimum deposit. 

It has zero annual fees, yet allows you to earn cash back and build your credit score to reach a fair limit. It works along the lines where your payments are constantly reported to credit bureaus i.e., Experian, Equifax, and TransUnion. 

In addition to this, you can earn 2% cash back up to $1000 at restaurants and the gas stations in combined purchases every quarter. Get automatic unlimited 1% cash back on other purchases too through the secured credit card. 

Tax returns also assist you in establishing your credit line where you have to provide at least $200 of refundable security. Discover is widespread and you can utilize its credit cards in every nook as it is accepted by 99% of places accepting credit cards. 

The highlighting features include Intro (Purchases) N/A, Intro (Transfers) 10.99% Intro APR for 6 months, Regular APR 22.99% (Variable), $0 Annual Fee, and New/Rebuilding credit score. 

2. Discover it Cash Back 

It has a distinctive feature where it quarterly rotates the cash back bonus categories. It works in a way where you activate your bonus category. Rest is all exciting where you can get the dream cash back rewards. 

Discover offer unlimited cash back match to you on all the cash back you’ve earned by the end of your first year. Unlike many others, it does not require you to have any minimum spending limit or even the maximum rewards. 

Earn unlimited 1% cash back on all the purchases, whereas it allows you to earn 5% cash back on daily purchases at various locations. These include gas stations, grocery stores, and even Amazon.com.

At the checkout option of Amazon.com, you can utilize the cash back rewards you’ve earned for any purchase. Excitingly, you can redeem the cash back whenever you want as they never expire. Plus, it doesn’t even charge you an annual fee. Isn’t it interesting!

The highlighting features include 0% Intro (Purchases) APR for 15 months, 0% Intro (Transfer) APR for 15 months, Regular APR of 11.99% to 22.99% (Variable), $0 Annual Fee, and Good/Excellent credit score. 

3. Chase Freedom Unlimited 

No matter what cash back you have, you can always redeem your rewards through the Chase Freedom Unlimited credit card. It doesn’t charge you with an annual fee. Also, as mentioned there is no minimum to redeem for the cash back. 

You can enjoy up to 5% cash back on Chase travel if you opt for the Ultimate Rewards. Moreover, as soon as you complete the spending of $20000 in your first year, you can earn 3.5% cash back on the drugstore purchases, takeout, delivery services, and a few others. 

The highlighting features include 0% Intro APR on Purchases for 15 months, 0% Intro APR on Balance Transfers for 15 months, Regular APR is 14.99-23.74%, $0 Annual Fee, and Excellent or Good credit score. 

Things to Keep in Mind For Cash Advances

A few of the considerations you must pay attention to while choosing a cash advance to get cash from the credit card include. 

• The fees charged by the credit cards for a cash advance which is typically 3% to 5% of the total transaction amount. 
• There is no grace period in the cash advance credit cards. 
• Interest fees get stacked up if not paid back in time. 
• Be aware of various cash equivalent transactions treated similar to those of cash advances. 
• There are generally no credit card rewards on the cash advance transactions. 

Things to Keep in Mind For Cashback Rewards

A few of the considerations you must pay attention to while choosing cash back rewards credit cards include. 

• Make sure you are responsible enough to utilize the card rightly where you only charge what you can repay. 
• If you have a balance from one month to the other, it would get really difficult to get hold of the cash back rewards. 
• The fee of the credit cards here increases with the rewards rate. Do look into it before opting for one. 
• They might not be the smartest choice when it comes to looking for credit card rewards.

Cash Advance Alternatives 

Cash advances have their drawbacks and many ATMs have limits on the amount that you can withdraw in a single transaction. Few of the cash advance alternatives include.  

• Prepaid Gift Card 
• Borrow From a Friend Who Uses Cash 
• Shift the Bills 
• Payment Apps 
• Personal Loan 

Before You Go! 

Using a credit card at the ATM is a bit risky since it comes with high fees. It can lead you into the pit of serious debts. Even though every credit cardholder can use any ATM to withdraw cash, it would be best to account for policies and aspects involved in getting cash from credit cards. 

Another one we discussed earlier was the cash back reward which is a rebate on whatever you buy. Knowing about what card lets you earn maximum rewards to redeem can help you opt for the ideal cash back credit card for yourself.