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7 Alternatives to Credit Card Cash Advances

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7 Alternatives to Credit Card Cash Advances
Cash advances are expensive. They are a viable option when you're stuck, but take a look at the alternatives first.
By Kimberly Palmer Senior Writer/Spokesperson | Budgeting, personal finance financial planning for families Kimberly Palmer is a personal expert in finance at NerdWallet. She is also the writer of three books on finances "Smart mom, Rich Mom," "The Economy of You" and "Generation Earn." Kimberly's work also is published on .




and Funto Omojola Lead Writer Auto loans and credit cards Funto Omojola started writing for NerdWallet in 2020. Before joining NerdWallet she wrote about topics related to personal finance for financial websites and organizations and has over five years ' experience in writing about money. Her work has been featured on MarketWatch, Yahoo Finance, Realtor.com, New York Post, and Nasdaq, among other places. Funto earned a bachelor's degree in international and global studies as well as she also holds an MFA from Bard College. She lives at Brooklyn, New York.





Dec 1, 2022


Written by Erica Corbin Assistant Assigning Editor Erica Corbin joined NerdWallet in 2020 as an assistant editor assigned to the large. She previously wrote and edited content at companies such as GOBankingRates and Nasdaq. She has had her work published on USA Today, Yahoo Finance, MSN and more. She also worked as an editor and freelance writer for more than a decade with various clients and publications across industries. Erica has a bachelor's degree from the department of English literature at Seattle Pacific University.







A majority of the products featured here come from our partners who pay us. This impacts the types of products we feature as well as the place and way the product is featured on a page. But, it doesn't influence our evaluations. Our opinions are entirely our own. Here's a list of and .



The idea of taking out a credit card can sound appealing: You get easy access to cash, which you might need to buy food items or rent.
However, there are a number of negatives with cash advances, like charges that can be high and interest that starts accruing instantly. There's often a cap on how much you can withdraw, and generally it's much less than your overall credit limit.
They may be a viable option -and an alternative than, say, taking out a loan -- cash advance should be utilized only in the last instance should you be facing financial hardship.
Before you pull one out, take a look at these alternatives:
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1. Low-interest or 0% intro APR credit cards
Some credit cards have zero% intro APR periods on purchases, meaning you are able to use them to pay for the purchase of groceries and other necessities without having to pay interest upfront. However, of course you'll still have to pay back the loan but you'll have an extended period that can range between six months and nearly two years -- to pay it back in full before interest kicks in.
With the , for example that you are able to take advantage of an almost two-year exemption from interest. It provides a 0% intro APR on Purchases for up to 21 month and 0% intro APR on Balance Transfers up to 21 months from opening your account on balance transfers, and then the current APR of 17.49%-29.49% Variable APR .
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2. 3. Credit card loan programs
Some credit card issuers offer loans to customers who are already customers. These loans, among other things, let them pay for certain purchases off, over time, and for the cost of. Examples of this include features.
Similar to that, Citi offers a and Chase has . These programs let customers take out loans at a lower rate than they would receive with the cash advance, and also to pay it back over the course of.
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3. Third-party payment services
If you're looking to purchase some time before your next pay day, you might look into a service to tackle some bills. The site allows you to use a credit card to pay for costs that are not otherwise able to be paid in this way, including rental, utilities or day care. With the 2.9 per cent service fee, Plastiq will charge your card for the bill, send a check out to the vendor under your name and mail it to them.
In the event that you are able to pay the bill promptly -- that is and without being able to carry it over to next month and being charged a double-digit interest rate -- an 2.9% convenience charge may be worth it and could be less expensive than other options. If you're using a rewards credit card for the cost, it could assist in paying the charge upfront.
4. Buy nowand pay later for services
It's often not practical to pay a huge sum of money at one time, whether you're strapped for cash or not. Providers, like Affirm, Afterpay and Klarna, allow users to divide purchases into smaller payments that can be paid over time -- usually anywhere from three to 12 months.
While certain BNPL choices come with charges and interest rates that can be costly If you're in a position to pay off your debt within a short period of time they could provide an easier and more flexible way to pay for your financial obligations.
It is crucial to remember however that BNPL is provided only by particular merchants. This means that if you need cash fast to pay rent or buy groceries such as, for instance this service may not be of help to you.
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5. Flexible credit card options
There are those that provide an affordable and flexible loans as opposed to cash advances. For example, the $0 annual fee allows customers to access their credit limit for personal loans. The borrower can repay the loan in equal monthly installments with a fixed interest rate.
Alternative cards are often more accessible to people who might not be eligible for conventional credit cards. This is because they don't rely solely on typical credit scoring models for determining eligibility. The cards that are eligible are the (issued by ) the, and the .
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6. Personal loans
The lenders offer a variety of , including secured loans that are secured by collateral, and non-secured loans however, they aren't. Some come with fixed rates, meaning that you pay the same amount every month until the loan is paid off and some offer variable rates. This means that your monthly payments may fluctuate in time. Rates typically range between 5% and 36%.
Although the interest rate is still relatively high, it can be less than cash advances in particular when you consider the additional cost of taking one out that is usually an upfront fee or percentage of the amount withdrawn.
7. Optional options for quick cash
If you're in a pressing financial situation and need immediate funding, there are some fast ways to find some relief:
You can cash out your rewards If you have a credit card with a cash-back rewards program You may be able to redeem your rewards for an amount of money.
You can request an advance from your pay: Although the cash advance option to your credit card may be costly and risky so soliciting your employer to grant an advance of your paycheck could be a solution to meet your financial needs without having to pay any fees or charges.
Request assistance from your local authorities There are many local organizations that provide financial assistance for those facing hardships. Local organizations that could be of aid might include religious groups, non-profit groups and community centres.

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Authors' Bio: Kimberly Palmer is a personal finance expert with NerdWallet. She has appeared in the "Today" show and in The New York Times.


Funto Omojola, the auto loans writer for NerdWallet. She has had her work featured in MarketWatch, Yahoo Finance and Nasdaq.







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