The best way to avoid cash advance fees is to avoid cash advances with a credit card altogether. Another way would be to apply for a credit card which does not charge cash advance fees, like the Secured Chime® Credit Builder Visa® Credit Card.
However, there are only a few credit cards on the market with no cash advance fees and most of them are issued by Credit Unions. For example, all PenFed credit cards have 0% cash advance fees and fairly low cash advance APRs.
Alternatives to Cash Advances with a Credit Card
- Open a cash account.
Having either a checking account or a prepaid card that gives you access to free withdrawals at a large ATM network is one of the best ways to avoid cash advances. - Borrow money from a friend.
See if a friend or relative will lend you money on short notice. - Apply for a personal loan.
Personal loans usually offer better terms than a cash advance. You usually can pay back the loan at a fixed interest rate that's much lower than the APR charged by credit card issuers.
Out of all the credit card fees, cash advance fees are some of the most exorbitant. According to WalletHub’s latest Credit Card Landscape Report, the average cash advance fee is currently just above $8.
Ultimately, please note that when you do a cash advance, there’s also a separate cash advance APR (21.5%, on average) that applies immediately after you complete the transaction. All in all, cash advances are costly transactions that should be reserved for emergencies only.
This answer was last updated on 06/05/24 and it was first published on 08/26/22. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
FAQs
How to avoid interest charges: Paying your bill in full every month is the simplest way to avoid interest. If you can't afford to pay your bill in full, reduce your spending or consider a 0% APR card that doesn't charge interest for up to 21 months.
How do I avoid cash advance fees? ›
Alternatives to Cash Advances with a Credit Card
- Open a cash account. Having either a checking account or a prepaid card that gives you access to free withdrawals at a large ATM network is one of the best ways to avoid cash advances.
- Borrow money from a friend. ...
- Apply for a personal loan.
To avoid using a cash advance in non-emergency situations, it can help to familiarize yourself with other ways to cover expenses.
- Build your savings. ...
- Ask about a payment plan. ...
- Consider a line of credit. ...
- Apply for a personal loan.
How to avoid interest charges: Paying your bill in full every month is the simplest way to avoid interest. If you can't afford to pay your bill in full, reduce your spending or consider a 0% APR card that doesn't charge interest for up to 21 months.
How to get cash from a credit card without cash advance fee? ›
Ask your card issuer for convenience checks. These are checks you can write that are tied to your credit card account. Wire money to yourself through a money transfer service, such as Western Union, and pay with your credit card. Purchase a money order with your credit card, if you can find a merchant that allows this.
Why do I keep getting charged cash advance fee? ›
Your credit card company may classify multiple types of transactions as cash advances, even if you don't receive the cash directly. You may be charged a fee if you use your credit card to: Transfer money through peer-to-peer apps, such as Venmo. Make a loan payment.
How do I avoid advance fee schemes? ›
Be wary of businesses that operate out of post office boxes or mail drops and do not have a street address. Also be suspicious when dealing with persons who do not have a direct telephone line and who are never in when you call, but always return your call later.
How to avoid surcharge on credit card? ›
How can you avoid credit card surcharges? As a consumer, you have options to avoid surcharges. These include using cash instead of a credit card to make a purchase, or using a debit card, for which surcharges cannot be applied. You can also choose to shop at businesses that do not charge these fees.
How to avoid markup fee on credit card? ›
Opt for Local Currency: When making purchases abroad, you may encounter the option of paying in your home currency or the local currency. Opting to pay in the local currency can help you avoid dynamic currency conversion fees imposed by merchants, ensuring you get the most favorable exchange rate possible.
What is one reason you should avoid cash advances? ›
With high interest rates and cash advance fees of up to 5%, using your card to pull out cash can quickly lead to debt. If you're concerned a cash advance could make a bad situation worse, you may wish to remove the temptation to pull out cash.
Keep at least the minimum balance required in your account. This helps to avoid monthly fees and accidental overdrafts. Keep multiple accounts at your bank. Many banks are looking at the entire customer relationship and may offer free services if you maintain both checking and savings accounts with them, for example.
How do I get my CC fee waived? ›
If you decide that paying this added fee isn't working for you, here are a few ways you can get it waived.
- Contact your card issuer. ...
- Look for promotional fee waivers. ...
- Use military benefits. ...
- Negotiate your card's benefits. ...
- Shop around for a comparable card with lower fees. ...
- Cancel your credit card.
If high credit card minimum payments are weighing on your budget, there are a few things you may be able to do to lower them, including:
- Sign up for a debt relief program. ...
- Consolidate your credit card debt. ...
- Transfer your balances to a new credit card. ...
- Ask your lender for a lower payment.
A cash advance often comes with a fee, a minimum, and a high interest rate with no grace period for paying it back. If you need cash from your credit card, try using it to buy a gift card that can act like cash, or redeeeming cash-back rewards.
Which credit card doesn't charge cash advance fees? ›
Best cash advance credit cards
| Card | Cash advance fee | Annual fee |
|---|
| PenFed Gold Visa® Card | $0 | $0 |
| PenFed Platinum Rewards VISA Signature® Card | $0 | $0 |
| PenFed Power Cash Rewards Visa® Card | $0 | $0 |
| DCU Visa® Platinum Credit Card | $0 | $0 |
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While you will not be able to withdraw cash from a cash machine on any credit card fee-free, there are credit cards that allow you to access cash or spend on your card without paying interest. Here's how they work: 0% money transfer cards: Make a payment from your credit card as cash straight into your bank account.
How do I stop a cash advance charged interest? ›
If you pay off your balance in full by the statement due date, you won't pay any interest.
Can you dispute cash advance fee? ›
Can all charges be disputed? If you do it within the time limit, many charges can be disputed—but not all. For instance, you might not be able to dispute a charge if you got a cash advance and then used the cash for the purchase. Or if you made a purchase with a check that's tied to your credit card account.
What is the best way to pay off a cash advance? ›
Since your advance begins accruing interest the same day you get your cash, start repaying the amount you borrow as soon as possible. If you take out a $200 cash advance, aim to pay that amount in full—or as much as possible—on top of your minimum payment. Make it a goal to repay the amount in days instead of weeks.
Do cash advances hurt your credit? ›
Using your credit card for a cash advance doesn't directly affect your credit score. Your credit report won't show that you used your credit card to get cash. However, the cash advance does increase your credit card balance and could hurt your credit score if it pushes your credit utilization ratio too high.
