Can i pull cash from a credit card

A credit card cash advance is a withdrawal of cash from your credit card account. Essentially, you’re borrowing against your credit card to put cash in your pocket. However, there are costs to taking a credit card cash advance and, in some cases, limits on the amount you can withdraw.

Here, Better Money Habits®asks Bank of America’s Jason Gaughan, SVP, Consumer Card Products, about the key considerations of a credit card cash advance.

“Let’s say you go to your bank or to an ATM and use your credit card to take out money. While the process may seem similar to withdrawing money with a debit card, what you’re really doing is taking a cash advance on your credit card,” says Jason Gaughan, SVP, Consumer Card Products at Bank of America. “Unlike a debit card withdrawal, in which you’re accessing your own funds, with a cash advance your credit card company is essentially lending you money and charging your account. The charge will likely cost you; cash advances generally have a transaction fee and a higher annual percentage rate (APR). Additionally, there’s usually a limit on how much cash you can get an advance on.”

Using your card for cash isn’t the only form of cash advance, though. Some credit card companies send customers checks in the mail. These “convenience checks,” as they are known, are linked to your account. If you deposit them, the transaction is considered a form of cash advance, which subjects you to the cash advance APR. You may also incur transaction fees.

Cash advances can be an important source of funds in an emergency. Although you don’t want to plan on using cash advances regularly, you might use one if you are short on funds and unable to charge an expense. However, always be sure to consider all your options given the costs.

It’s a good idea to consult your credit card agreement to make sure you know the rules and fees. Here are a few costs to consider:

Overview

Get extra cash instantly with UOB Cash Advance

Never worry about not having enough cash in times of need. Whether it’s for your home furnishings or an emergency cash fund when the unexpected happens, with UOB Cash Advance, you can convert your UOB Credit Cards' credit limit into instant cash wherever, whenever you want it.

3 Easy ways to instant cash

Here’s how to perform a Cash Advance:

• Withdraw cash at any local UOB ATM using your credit card and PIN.
• When overseas, visit any UOB / Cirrus / PLUS ATM with your credit card and PIN.

Don't have your credit card PIN?

Simply reset your PIN instantly via:

• UOB TMRW
• UOB Personal Internet Banking with these simple steps:
  • Go to Account Services > Manage Cards > Select "Card Pin Reset" under Actions
• Call our hotline 1800 222 2121 for assistance.

With UOB Cash Advance, never worry about not having enough cash on hand.

• The minimum amount for Cash Advance done via ATM is S$200.
• Cash Advance amount is pegged to 75% of your credit limit or available credit limit (whichever is lower) and Cash Advance transaction is not applicable on temporary limit.
• Maximum cash withdrawal amount from a UOB ATM is S$3,000 per day.
• Interest will be charged on a daily basis from the date of each Cash Advance transaction, until the date full payment is made. Please refer to the UOB Cardmembers Agreement for full breakdown on interest.
• A Cash Advance fee of 8% of the transaction amount or S$15 (whichever is greater) applies for each Cash Advance transaction, and will be charged to your UOB Credit Card.
• Funds Transfer to UOB account performed after 10pm or on Sunday and public holidays will be reflected as the next business day’s transaction in your debiting account statement. For non-UOB banks’ submission after 3.30pm will be treated as the next business day’s transaction. Please allow 2 to 3 business days for the payee bank to process the transfer.
• With effect from 22 April 2022, quasi–cash transactions (at merchants such as Marina Bay Sands, Resort World Sentosa, Dream Cruises & more) under MCC 7995 will be deemed as cash advances. Cash Advance fee will apply and interest will accrue once your card has been charged. For more details, please refer to the list of Frequently Asked Questions.

If you’re having trouble getting cash from a credit card, it’s possible that the transaction put you above your credit card’s limit for cash withdraws, which is known as a cash advance. Many credit cards have an overall credit limit and a separate lower limit for cash advances and checks written from your credit card account.

What is a credit card cash advance

Most credit card companies offer you the ability to use your credit card to take out money through what’s known as a cash advance. Unlike a debit card, however, getting cash with your credit card at an ATM is considered a short-term loan and can be expensive.

Fees for a credit card cash advance

Unlike withdrawing money from a bank account, a cash advance pulls money from your line of credit through your credit card. In addition to repaying the money you withdraw, you’ll need to pay additional fees and interest as well.

The fees for a cash advance can be substantial. Depending on your credit card terms, the company may charge a flat fee for withdrawing money, or they’ll charge you a percentage of the cash advance. Keep in mind, you may incur additional ATM fees as well.

Interest for a credit card cash advance

In most cases, you’ll also commonly pay a higher interest rate for a cash advance than you would for a typical credit card purchase. Unlike other purchases that have a grace period before they start to accrue interest, interest on a cash advance starts as soon as you withdraw your money.

Before considering a cash advance, check your credit card’s terms and policies to find out the credit limit and fees associated with it. Your latest credit card statement will also list the current interest rate for cash advances. You can also contact the company directly by using the number on the back of your credit card.

Learn more about managing your credit cards