Editorial Note: Forbes may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations.Exercise caution with cash advances. While your debit card and credit card may seem like similar ways to access money, cash advances come with extra fees and higher interest rates than standard purchases.Higher APR than for purchasesA cash advance is a feature offered by many credit cards.
Merchants may treat specific credit card usage as a cash advance, as well. Transactions processed as cash advances may include, but are not limited to:Overdraft protection when a credit card secures a checking or savings accountLottery tickets, casino chips and gambling wagersA cash advance offers access to unsecured funds. However, you will pay compounding interest on the advance from the first day the cash is extended plus an up-front service fee.
Some cards designate various APR for different types of cash advances. Bank of America assigns APR to direct deposit and check cash advances and a higher APR to bank cash advances including ATM, over-the-counter, overdraft protection and cash equivalent transactions. Check your credit card’s terms to find out what to expect from your specific card.Your cash advance is often limited to a portion of the revolving credit line.
You should not get one. You're welcome.
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