If you want to get cash from your credit card but do not want to use a cash advance, you can try using your credit card rewards for cash, purchasing a prepaid gift card, or asking a friend for cash while you buy something for them with your card, among other options. The reason you might not want to use a cash advance is that it can be costly. Not only is the interest rate typically higher than regular credit card purchases, but you usually also have to pay fees. Instead, be creative in how you get cash from your credit card and keep considering these methods when you need cash quickly.
Purchasing a Prepaid Gift Card
Buy a prepaid gift card with your credit card and then sell it to someone for cash. You may have to accept a slightly lower value than the card’s nominal value to incentivize someone to buy it from you, but there are many online marketplaces that can help, such as Giftcard Granny and Raise, so just be sure any discount you offer is less than what you would have paid in cash advance fees and interest.
Some gift cards work like cash as well. So if you need to pay for something at a specific store, you can buy the gift card using your credit card and then use it at the store. Gift cards are often sold at various retail outlets.
Cashing in Your Credit Card Rewards
If you have accumulated credit card rewards, you may be able to redeem them for a gift card or cash. Sometimes the rewards can be worth more than their face value. For example, you may be able to get a $25 gift card for rewards worth $20.
When it comes to cash, you may be able to use your cash rewards to pay a bill or you might be able to receive a direct cash payout. The cash you redeem may not be instant, so if you need cash the same day, this might not be the best solution.
Finding a Friend Who Uses Cash
If you have a friend or relative who plans to buy something big with cash, you can make the purchase for them using your credit card. In return, your friend can give you the cash (or deposit the money into your bank account, perhaps using a peer-to-peer payment service).
The above scenario does not violate any rules, but many major peer-to-peer payment apps like Venmo warn that using a credit card to transfer money to a friend could incur cash advance fees that you would have to pay if you didn’t use Venmo. You may incur additional fees on these apps if you conduct transactions using a credit card. So, it may be better to complete this type of transaction with a friend or family member in person and outside the internet.
Paying Your Bills
If you can use your credit card for something you would typically pay for in cash (or with money from your bank account), use your card and get the cash. This can be particularly useful if you have a new credit card with a 0% introductory APR that gives you time to pay it off without accruing interest.
Some companies and landlords charge convenience fees when you pay a bill using a credit card, so be sure to compare the total costs before choosing the most economical way to get cash. Ideally, the fees should be less than the cash advance fees you would typically pay, but even if they aren’t, if you are not incurring a higher interest rate for a cash advance, it might be worth it.
Buying
Buy Something and Sell It for a Higher Price
If you’re willing to search, you may be able to use discounts, sales, or credit card rewards to buy items at prices lower than market value. You can then sell those items online or to a friend at a higher price. This can give you the cash profits you need, plus a little extra to cover interest fees if you need some time to pay off your credit card balance. Of course, there is a chance you may not be able to make a profit or sell the item in time (or at all).
Tip: If you have good credit and qualify for a new credit card, you may be able to get a card with no interest or fees for a limited time. This may help reduce your expenses further, especially if you only need some time to recover your credit card payments after a sudden crisis.
What to Watch Out for When Getting Cash from a Credit Card
Many credit card companies treat purchasing money orders or cash advances funded by a credit card just like cash withdrawals, so don’t let yourself be fooled into thinking you’re avoiding higher fees and cash withdrawal interest rates if you choose one of those options. Check the terms of your credit card agreement to learn how these money-equivalent transactions are defined.
Although these alternatives may be less costly than cash advances, don’t forget that you are still using your credit card to borrow cash. If you can’t afford to pay off your credit card balance each month, you will incur financial charges, even though they will be at the regular interest rate associated with purchases.
Make sure you are aware of any fees related to your balance limit. Before using your credit card, ensure you have enough available credit to take one of these steps.
Frequently Asked Questions (FAQs)
How can you get a cash withdrawal from a credit card?
You can get a cash withdrawal from a credit card by using the card at an ATM with your PIN or by visiting a bank and requesting a cash advance. You will need to present the actual card at the bank, and they will likely ask you to provide identification to verify that the card belongs to you.
How can you get cash from a credit card without a PIN?
If you don’t have a PIN for your credit card, you will need to visit the bank to withdraw cash in person. You should request a new PIN from the card issuer as soon as possible. You can usually do this through the bank’s app or your online account, although the card issuer may send the new PIN to you by mail. If sent by mail, it may take up to 10 days to receive the new PIN.
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Sources:
The Balance. “How Do You Redeem Credit Card Rewards and Points?”
Venmo. “Adding a Credit or Debit Card.”
Bank of America. “Credit Card Glossary.”
HelpWithMyBank.gov. “Can the Bank Charge Me an Over-the-Limit Fee?”
Consumer Financial Protection Bureau. “What Is a Grace Period for a Credit Card?”
Capital One. “Manage Your PIN Number.”
Source: https://www.thebalancemoney.com/how-to-get-cash-from-a-credit-card-without-a-cash-advance-4802305
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