In addition to payday loans, which is a cash advance against your next paycheck, it's possible to get a cash advance from your credit card if you need money right away.
There are times when a credit card cash advance can make sense, but rarely and should only be used in an emergency, like if your car breaks down and you have to get somewhere and you don’t have enough money in your checking account to cover the expense.
When you have no other option to pay for something you need immediately, and the merchant or company you're dealing with does not accept credit cards for purchases or services, that's when a cash advance from your credit card might be your only option. Cash advances are easy to get and you don't need to have money available in your bank account. Paying them back, however, is not without its drawbacks.
A cash advance from a credit card is obtained by using an ATM, a bank withdrawal or "convenience" check. Typically, you cannot take a cash advance for the entire amount of your available credit. The interest rate on a cash advance is often significantly higher than it is on a credit card purchase or balance transfer. A transaction fee, which comes out of the cash advance, is also charged.
It's also important to note that there is typically no grace period for cash advances ‒ the interest starts accruing the minute you take out the loan, so you need to pay it back as quickly as possible.
If you have any other options (and you probably do), LoanMerica recommends that you avoid cash advances from your credit card. If time allows, it makes more sense for you to give us a call at (800) 391-9310 and we'll do our best to help.