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If you have a Chase credit card, it’s easy to access cash advance. And if you’re low on cash and have bills to pay, a cash advance can seem like a blessing.
But giving out cash is usually not a smart financial move. They are expensive – most credit card providers charge a cash advance fee of 3% to 5% of the amount you withdraw. In addition, the interest rates associated with cash advances are high, reaching as high as 25.24% on a Chase credit card.
Even worse? Chase will start charging interest on your cash advance as soon as you make it. For regular credit card purchases, you can avoid paying interest by paying off your purchases in full by the next card due date.
Message? Don’t go for cash advances unless you really have no other options.
What is a cash advance?
A cash advance is a short-term loan from a credit card provider. It’s like getting cash from your debit card, but instead of getting money from your checking account, you borrow it against your line of credit.
The main difference is that since the cash advance is a loan, you have to pay fees and interest – and at a fairly high rate compared to your credit card’s normal annual interest rate.
For this reason, it is generally recommended to avoid using a credit card to receive cash. If you need funds for a transaction where credit cards are not accepted, consider all other options before moving on to cash advance. There are cheaper ways to get a cash loan. You can, for example, try personal loans, which usually come with much lower interest rates.
How to get a cash advance with Chase
If you decide to get a cash advance from your Chase credit card, even though you know it’s an expensive way to borrow money, you have a few options.
Go to branch Chase
You can visit your nearest Chase branch and request a cash advance. Make sure you have a credit card and government-issued photo ID that the bank can use to verify your identity.
Use an ATM
If you have a PIN, you can also get cash from an ATM. Please note, however, that you may have to pay an ATM fee.
If you do not currently have a PIN on your credit card, call Chase at 1-800-297-4970 and follow the instructions to create one.
Tip: Many credit card issuers allow you to get a cash advance by writing a convenient check that can be used in the same way as a regular personal check (except for all the conditions associated with a cash advance). However, reports vary as to whether Chase offers this option. Call the number on the back of your card to see if you can receive Chase convenience checks.
Chase Cash Out Cost
Before borrowing cash against a line of credit, it is important to know how this step will affect your budget.
Cash withdrawal fee
Getting cash from your credit card isn’t free, and not just because of interest. Chase charges a cash advance fee that ranges from 3% to 5% of the amount you borrow, or $10, whichever is higher. If you borrow $300, the 5% fee will be $15.
Higher interest rate
However, the main reason cash advances are so expensive is their high annual interest rates. Currently, the cash interest rate on Chase credit cards ranges from 19.49% to 25.24%. However, that rate is subject to change: Chase says the APR on cash advances can vary depending on the base rate.
You also don’t get a grace period when you take out a cash advance. Interest begins to accrue as soon as you complete the cash withdrawal transaction. If you do not repay the balance right away, the amount you owe can quickly increase due to the high interest rate charged on these loans. This can turn your cash advance into a dangerous form of debt.
If you have no other options and a cash advance is your last resort, it may be wise to consider a credit card that comes with a lower annual interest rate on cash advances. For example, the PenFed Power Cash Rewards Visa Signature® card charges only 17.99% APR for cash advances. This is still a lot, but much lower than other credit cards.
In addition, PenFed Power Cash has no cash withdrawal fees. It also has a solid rewards program: you’ll get 1.5% cashback on all purchases, or 2% for current or ex-servicemen (or those with an Access America checking account). The card also does not charge an annual fee.
bottom line
While Chase allows cardholders to borrow cash against a line of credit, it is an extremely expensive way to borrow money. We recommend using cash advance only as a last resort. It is better to create a reserve fund in the amount of three to six months of daily living expenses. This financial cushion can help you avoid the need for a quick but costly cash injection down the road.
All Visa Signature PenFed Power Cash Rewards card information has been independently collected by CreditCards.com and has not been verified by the issuer.
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