Best Credit Cards for Cash Advances
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If you need quick cash, one very expensive – but sometimes necessary – option is to use your credit card at the ATM for a cash advance.
A cash advance lets you take money out of the machine with your credit card just like you do with your ATM card, when you withdraw your own money. However, this type of transaction will show up as a charge on your credit card statement for you to pay off in the future.
There’s also a catch to cash advances. Most credit card companies charge an upfront fee plus a high interest rate on them. Ideally, you have your own cash fund set aside for emergencies. However, if you are in a tight spot, a cash advance is better than some of your other options. Payday loans, for example, often charge even higher fees. And if your strategy is to put off paying some of your bills when you’re strapped for cash, you could end up with penalties, lost services, and damage to your credit score.
Also know that cash advances are not a solution to long-term financial problems. If you’re going to be hurting for money for awhile, you may want to consider alternatives such as a small loan from a credit union, negotiating with your creditors, or contacting a consumer credit counseling service. Read our guide on how to get out of debt before you consider a cash advance.
After considering all your options, if you do decide to opt for a cash advance, here's our updated list of the best credit cards for this purpose. While you hopefully will never need to turn take this step, at least you know you will get a fair deal if you equip yourself with one of these cards in, well, advance.
All cards below have no annual fee and usually require excellent credit.
Barclaycard Ring offers cash advances at a 8% variable APR with a $1 cash advance transaction fee.
Citi Simplicity Card offers cash advances at 12.99% to 21.99% variable APR based on your creditworthiness. There is a cash advance fee of either $10 or 5% (whichever is greater).
To be sure, in today’s rough economy, money is tight for many American households. In a poll by the American Payroll Association, 68% of households reported that they would have serious financial problems if a paycheck was a week late. This means most Americans are living paycheck to paycheck and don’t have the cash reserves to deal with a financial emergency. So while a cash advance may be a last resort, know that you’re probably not alone if you need to go this route. At least now you know the best options for which credit card can put you in the best position when you’ll need a cash infusion.
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