A cash advance may seem like a good idea, but it has interest and fees tacked on that make it one of the most expensive ways to use your credit card. If you need to get money from a credit card, make sure that you understand the penalties that will occur when doing so, and that you pay the amount back as soon as possible.
Step 1
Read your cardholder agreement to find out what fees and interest will be associated with your cash advance. Most credit cards will charge a percentage of the cash advance as a fee when you take out the cash advance. The interest rate for a cash advance is higher than that of credit card purchases, and the interest rate you incur from a cash advance starts immediately, There is no grace period for interest.
Step 2
Locate your credit card company's closest ATM. For instance, if you have a Visa issued by Chase, go to a Chase branch. You can obtain a cash advance from almost any ATM but using one that does not belong to your bank will result in ATM fees, making your cash advance even more costly.
Step 3
Insert your credit card into the machine, and enter in your credit card PIN number. When the screen prompts you, choose "Withdrawal" and then choose "Credit" instead of the usual "Checking" or "Savings" accounts.
Step 4
Choose the amount of money that you'd like to get from your credit card. Make sure to keep the fees in mind as you withdrawal, and never remove more money from the credit card than you can pay back immediately.
Step 5
Pay the full amount back as soon as you can. Interest begins accruing immediately. The only way to use cash advances wisely is to pay them back quickly and avoid extra interest and fees on top of your usual credit card bill. A cash advance will appear on your credit card as a separate charge, but will be lumped together in the minimum payment. You can pay the cash advance off separately from your credit card purchases by calling your credit card provider and asking that the cash advance amount be paid off by submitting a payment especially for the cash advance to avoid incurring higher interest charges.
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