Getting cash from your credit card is easy, almost too easy, and gets many people in trouble. I’m not going to tell you not to do it, but I want to show you what it takes to get a credit card cash advance and how you end up paying for it.
In order to get cash from your card you need to have the PIN number that is associated with the card. Most people don’t have this number on hand or memorized. If that is your case, flip your credit card over and call the customer service number that’s on the back. You’ll go through the phone tree until you can actually talk to someone, verify your identity, and they’ll provide you with the PIN number.
With the PIN you can get cash from any ATM that has the same logo that your credit card does (Visa, MasterCard, AMEX, etc.). This works exactly the same as getting cash with your debit card. Some banks will allow you to withdraw money from inside as well. Get ready for the first of your fees here, you’ll probably pay at least two bucks to just get the cash out of the machine! In places like casinos, sports stadiums, concerts, and airports you can expect to pay over five dollars to get your money.
Your credit card company probably won’t charge you a fee for your cash advance, but they do screw you in a different way. Most, not all credit card companies will classify your cash advances with a different interest rate than regular purchases. Of course the interest rate is higher, but the problem comes when you make your next payment. Your payment will be applied to purchases first and cash advances second. Lets say that you have a balance of $200 in purchases and $100 in cash advances, making a payment of $250 will leave $50 of the higher interest cash advance to earn them more interest for the next 30 days.
Credit card cash advances are a good way to get cash in a pinch, just be ready for your credit card company to gouge you when you pay it back.