Credit Card Tips

Credit Card Cash Advance 101: What It Is and How It Works

Credit Card Tips
December 17, 2021
2 min. read

You may find yourself stuck in a tight situation where you immediately need some extra cash you don't have at the moment. For example, there could be cases where the establishment does not accept cards, unforeseen events when you need to pay for something quickly, or you simply do not have enough cash on hand.

For instances like this, it may be beneficial for you to get a credit card cash advance instead.

Submitting an online credit card application with your preferred bank can benefit your finances in more ways than one. Not only do you avoid worrying about how you can complete your transactions online and offline, but you can also make quick cash advancements with your account.

Before you rush and make a cash advance, there are a few things you need to consider first. This includes understanding how the process works and the best options you can take to solve your financial situation.

What is Credit Card Cash Advance?

A credit card cash advance is the act of taking cash or borrowing money from your credit card account and paying it back later. The process is generally simple and easy.

Credit card cash advances can be made through multiple methods, usually for a small service fee. The amount of money you can borrow varies depending on your credit card account's established cash advance limit. These limits may have a daily, monthly, or overall time frame based on your current account status.

If you are a first-time credit cardholder, your cash advance limit may be smaller compared to other account holders who have wisely managed their credit scores over the years.

When to Make Credit Card Cash Advance

A dire financial situation is a great time to use a cash advance from your credit card. However, it is considered the best option solely for emergencies, not to spend on your regular expenses. By doing so, you can ensure that you have the funds you need when faced with an actual dilemma in the future.

Using a cash advance is best reserved for financial emergencies such as the following:

  • Paying for emergency medical fees
  • Large payments (tuition, car repairs, etc.)
  • Recurring bills past their due date
  • Funeral expenses

How to Avail of Credit Card Cash Advance

Getting a cash advance on your credit card is a relatively easy experience, no matter what method you choose. Here are the three most common ways how.

1. Bank Transactions

Your credit card provider can grant you a cash advance through your local branch, especially if you seek to withdraw a total amount that goes beyond your ATM withdrawal limit. However, you will typically need to provide proof of identification to ensure that you are the true owner of the account.

2. Automated Teller Machine (ATM)

Using an ATM is one of the most common and convenient ways to get a quick cash advance on your credit card. Locate your nearest machine and input the amount you want to withdraw along with your security PIN or number. At the same time, you can use the ATM to keep track of your account balance.

Credit Card Cash Advance Terms and Fees

Different credit cards may have varying terms and conditions depending on company policies. As a result, fees and other charges may also be different. Therefore, it is essential to check the terms with your preferred bank before you sign up.

● Cash Advance Fee
The Cash Advance Fee is fixed at P200. An additional acquirer fee will also be charged if the Cash Advance is done at an ATM. For RCBC Bankard, the acquirer fee is waived if withdrawal.

● Cash Advance APR
All cash advances have an interest rate that applies to all types of transactions you make.

● No grace period
Credit card cash advances will charge you interest from the day you withdraw your cash advance.

Financial Solutions with Cash Advance

When you're in a financial bind, having a credit card can be a great advantage to help you cover unexpected expenses. But you need to keep in mind to manage it wisely to avoid making credit card mistakes and getting into more trouble with your finances.

Need a credit card? Apply for a credit card online at RCBC Bankard today! Sign up here.

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