Card Issuers Are Offering Less Expensive Methods to Access Your Credit Line. Disclosure of Advertisers We’re the first to consider you a priority. Each day. We believe that everyone should be able to make sound financial decisions with confidence. Although our website does not include every financial or company product available on the market, we’re proud that the advice we provide and the information we offer as well as the tools we design are independent, objective simple, and free. How do we earn money? Our partners compensate us. This can influence the products we write about (and the places they are featured on our website) However, it doesn’t affect our advice or suggestions, which are grounded in many hours of study. Our partners do not be paid to ensure positive review of their services or products. . Card Issuers Are Offering Cheaper Methods of Accessing Your Credit Line Cash advances that cost a lot of money are no longer the sole way to access your credit lines. However, there are some drawbacks to be aware of. Written by Melissa Lambarena Lead Writer | Credit cards credit cards, credit cards, Melissa Lambarena is a lead writer on the credit cards team at NerdWallet. She has been a passionate writer covering credit card related topics for more than six years. Her prior experience spans nine years of experience as an author for various publications and websites. Through her work, she strives to help users extract value from credit cards to help them achieve financial goals such as increasing their budget, establishing credit, taking trips to dream destinations and paying off debt. She investigates these topics as well as others in the Millennial Money column featured in The Associated Press. Her work has also appeared in The New York Times, Chicago Tribune, The Washington Post, USA Today and Yahoo Finance, among others. Melissa has a bachelor’s degree of sociology, from The University of California, Los Angeles. Dec 1, 2022 Edited by Kenley Young as the editor assigned to NerdWallet. Credit cards, credit scores Kenley Young oversees the daily credit card coverage for NerdWallet. Before that, he was an editor on the homepage as well as a digital content producer at Fox Sports, and before being a front-page editor for Yahoo. He has decades of experience in digital and print media, with periods as chief of the copy desk as well as a wire editor as well as a metro editor at the McClatchy newspaper chain. Email:

. A majority or all of the items featured here come from our partners who pay us. This influences which products we feature and where and how the product is featured on the page. However, this does not affect our opinions. Our opinions are entirely our own. Here is a list of and . Credit cards are a convenient way to pay for something but they’ve never had flexible or inexpensive ways to access your credit line beyond making purchases. The traditional alternatives to tapping your credit line for money is an, which is usually with a sky-high cost of interest and high fees. If your financial situation is already in a bad state, this kind of costly short-term loan could cause more problems. Recently, more efficient and cost-effective options are emerging. In the past few years, each of the major credit card companies and startups have come up with features and products that make it easier -and more affordable to use your credit line to reimburse friends, pay off large purchases at lower rates, pay for an expense you’re not allowed to pay using a credit card, or get cash deposited into accounts at banks. More: Less hassle peer-to-peer transactions Never carry cash these days? Or maybe you’re only a couple of dollars short of your part of the check at dinner? It’s possible to consider a feature like American Express’s launch in November 2020, and accessible on eligible cards via AmEx’s mobile apps. The “Send” part of this option allows you to use your AmEx card to pay other individuals through or however, without having to pay the transaction costs that normally be charged on credit cards that are used for these on the platforms- typically, about 3 percent. The terms apply, with limitations on the amount you can make and the transactions aren’t eligible to earn rewards. However, they can be a perfect solution for splitting the costs of gifts, food or even more. “We’ve certainly seen a lot of sustained customer engagement,” said Stephanie Schultz, vice director and head of new strategic partnership of American Express. “One of the most popular areas we’ve observed has been giving gifts, particularly over the Christmas season.” What to keep in mind: As with any charge to your credit card, you’ll need to pay for a “Send” transaction at the time of your due date to avoid accruing charges for interest. The terms and conditions apply. More: Flexible financing and installment-loan options What if you want to finance a much larger expense? Some card issuers and startups have made it possible to convert your credit available into the form of an installment loan. Chase and Citi for instance, offer these options and, in turn for cardholders who have been selected. These options function much like an individual loan by a banking institution by depositing money direct into your account at the banks. You’ll have a set period of time to pay back the loan by making a monthly fixed payment. The loan will be charged with interest, but potentially at a rate lower than your credit card’s current APR. These options make it possible to take out a loan without having to fill out an application, which means no new credit check on your report. “With My Chase Loan, customers have informed us that the possibility of taking the loan without a credit check or credit check, or a new credit card to maintain, with an APR that’s lower than their credit card’s standard APR, is attractive,” said a Chase spokesperson in an email. “They are also pleased with the simplicity that comes with knowing the monthly payment quantity and loan duration upfront, and reassurance that there is no origination or early payment cost.” If you’re in need of time to make a payment on a major purchase, this kind of option may be more affordable than charging it directly to your card . In addition, it’s cheaper than cash advances. What to keep in mind: These programs are targeted, so they may not be accessible to every person in all instances. Include the possibility of impact on the utilization of your credit (and your credit scores) as well as the overall price of the loan even with an APR lower. The loan amount you are able to request will depend on your credit limit and creditworthiness, which is why it may still be worth checking personal loan rates offered by other institutions. >> MORE Tips for Nerdy If you’re looking to split your individual purchase with a credit card into smaller chunks that you can manage it’s possible to explore Chase’s My Chase Plan option or Citi’s Flex Pay feature. Similarly, the Mastercard payment network is launching a service known as . Terms and charges could apply, however these options make monthly payments more predictable. AmEx also has a service that has the fee is fixed for each month, but you’ll know how much you’ll pay every month. Terms apply. Further options from startupstoo. startup company Upgrade provides a unique as well as flexible product -the — which combines elements of both credit cards and personal loans. If you use it as a credit card the balances remaining are converted to installment loans. When you use it as a personal loan it is possible to get money deposited in your bank account. In either case, you can pay back the loan with equal monthly payments at fixed rates within a specific timeframe. What to keep in mind: The APR you qualify for can vary in accordance with the other installment loan options you should check rates with other lenders as well. >> MORE Third-party options: If your credit card issuer isn’t as flexible with access to your credit line, third party services may offer another avenue. For example the service, which costs a fee, permits you to use your credit cards to pay bills you can’t usually pay in this way, such as mortgage, rent and day care, utility bills and much more. It charges your credit card through Plastiq for amounts equal to the charge (plus a 2.9 percent processing fee) and then Plastiq makes payment to the person for you. This is a useful service in the event that, for example, a bill is due in a matter of hours, but you require some breathing room while waiting for a paycheck to be received. In contrast to alternatives, you can earn rewards on credit cards, which could help offset some of that processing fee. There was a time when Berna Anat, a San Francisco resident and content creator, utilized this service to pay bills and earn points to pay for a trip to New Zealand and other destinations. “I never charge more than more than the money I had already saved for the month,” she said. Keep in mind that even though the 2.9% processing fee is less expensive than a cash advance it can still pack a big bite, especially for big transactions. If you’re unable to pay the bill completely by your due date for your credit card the interest will be added to the APR of your card, which is quite costly. Additionally, certain credit cards aren’t compatible with third-party bill payment services. Before using one, read , or ask the issuer how (or what) it will be processed. It might be treated as an advance on cash as an example, and not than a purchase. >> MORE: About Melissa Lambarena: Melissa Lambarena is a credit cards author at NerdWallet. The work she writes for has been highlighted in The Associated Press, New York Times, Washington Post and USA Today. On a similar note… Discover the perfect credit card for you. If you’re looking to pay lower interest or earn more reward points, the right card is available. Simply answer a few concerns and we’ll refine your search for the right card for. Explore even more in Credit Cards Find out more money-savvy moves – straight to your inbox. 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