Cash Advances Are Still a Pain However, what about a Credit Card Loan? Maybe Less So Advertiser disclosure You’re our first priority. Each time. We believe everyone should be able make financial decisions without hesitation. While our website doesn’t contain every financial institution or product available on the market, we’re proud that the advice we provide and the information we offer and the tools we develop are objective, independent simple, and cost-free. So how do we earn money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the website) However, it in no way affects our recommendations or advice which are based on thousands of hours of study. Our partners are not able to be paid to ensure positive reviews of their products or services. . Cash Advances Still Sting, but a Credit Card Loan? There are a few options to borrow from your limit -in the event that your credit card provides such features — can be less expensive than making use of your ATM card for fast cash. This article was written by Sara Rathner Senior Writer/Spokesperson | Credit cards, travel rewards, debt payment Sara Rathner is a NerdWallet credit card and travel expert. She has been featured on the “Today” show, as well as CNBC’s “Nightly Business Report” and has been quoted on The New York Times, The Washington Post, The Wall Street Journal, Yahoo Finance, Time, Reuters, NBC News, Business Insider and MarketWatch. Prior to making the move to NerdWallet, Sara worked at The Motley Fool for nearly 10 years. She was also a freelance personal finance writer and paraplanner . She also holds a bachelor’s diploma in Journalism at Northwestern University. Feb 7, 2023 Edited By Kenley Young Assigning Editor | Credit scores, credit cards Kenley Young directs daily credit cards coverage for NerdWallet. Previously, he was an editor of the homepage and digital content producer at Fox Sports, and before that , a front page editor for Yahoo. He has a wealth of experience in both digital and print media. This includes times as a copy desk chief and wire editor as well as a metro editor for the McClatchy newspaper chain. Email:

. A majority or all of the products we feature are made by our partners who pay us. This affects the products we review and the location and manner in which the product is displayed on the page. However, this does not influence our evaluations. Our views are our own. Here is a list of and . When you lack the money in your account at the bank to pay for an unexpected expense It’s a good option to gain access to required funds, however there are a few major disadvantages. You’ll be responsible for cash advance as well as ATM charges, as well as the interest rate that starts to rise as soon as you get the money. And about that interest Based on data from the Federal Reserve of St. Louis The average APR of cards that charge interest were 20.4 percent in November 2022. That’s pretty high already and, in many instances, interest rates specifically in cash-based advances can be even more expensive than those. So, that cash advance is likely to cost you. But you might have alternative, cheaper options, thanks to credit card loan programs that let you take advantage of your current credit limit — which is what you’re doing when you make a request for a conventional cash advance. But unlike a cash advance, these newer loan programs come with a variety of benefits that include a fixed interest rate for the entire term of the loan. No additional loan request or credit screening is required. In many cases, there are no charges that go beyond the interest payment (or any late payment that could be due). A transparent procedure that allows you to see the options you’re entitled to and what the monthly cost of each choice will be. There are new ways to get credit against your limit Among major lenders both Chase and Citi offer these types of loans to cardholders who meet certain criteria. You can determine what you could possibly have the ability to get by logging into your account online, or using either the Chase or Citi applications. My Chase Loan allows you to borrow a minimum of $500. You’ll have the choice of various payment plans with various terms. For instance, you might be able to choose an option like a 6-month or 12-month option, possibly at a much lower APR (think single digits) than your card’s current adjustable rate of purchase. (Your rate and terms depend upon your creditworthiness.) You’ll also see what the monthly payment would be for every loan option. The loan amount will add to the credit card’s minimum payment every month until you pay it off. There’s no penalty if decide to pay the loan in advance. The terms apply. Citi Flex Loan A operates similarly: Borrow a minimum of $500 at a fixed rate for a specified duration. You can choose from loans with different amounts and lengths, and you’ll see the monthly amount that your payment will be according to the terms you select. Your monthly payment will be included with your minimum monthly credit card payment every month. The terms and conditions apply. Beyond the scope of these loan programs from major companies, you might have alternative options. For instance, hybrid products offered by a start-up known as Upgrade can be used to make purchases, as you would do with a traditional credit card. However, the bill is paid in installments fixed at the same rate like an individual loan. You may also be able to borrow against your credit limit by asking for cash to be deposited in your account. The terms and APRs differ, but they can nevertheless be less costly than a cash advance. The drawbacks could be that both loan programs offer the ability to access money quickly at a cost lower than a cash advance, but there can be negatives. For instance, you don’t receive cash in hand immediately. For My Chase Loan the loaned money could take up to two days to be directly deposited in your checking account. Citi Flex Loans can also come in the form of direct deposit, which takes as little as a business day, or a mailed check that takes however long the mail takes. Rates of interest may not be as competitive as personal loans. If you meet the criteria for, you might be able to get lower interest rates on other types of loans (though for a personal loan it is necessary to submit an application and undergo the credit screening). If you have a little more time to look around, it could be worth looking into other ways to obtain the cash you require. You’ll still pay interest. If you require money to pay to make a purchase in the near future There are alternative payments that do not charge fees, but you could be subject to a fee. Options to think about if you have expensive purchases coming up, there are ways to use credit cards to delay interest payments or divide the cost of your purchases: A similar plan using your credit cardsuch as My Chase Plan or Citi Flex Pay can allow you to split a larger charge into monthly installments that can be added to the credit card bill. With Chase, you’ll pay a monthly fixed fee, while with Citi’s plan you’ll pay interest. Numerous other major issuers provide different versions of these plans. But whether you opt into an installment plan with your credit card or the purchase now from a third-party pay later option, be sure to exercise caution. A report released in September 2022 by the Consumer Financial Protection Bureau identifies costly risks associated with these plans, including the likelihood of spending more and the chance of being unable to make payments if you stack multiple loans at once. Credit cards that offer 0% interest promotion on purchases made in the new year can allow you a full year depending on the card and the amount of your amount of debt interest-free. But be aware that if are still in debt when the promotion is over and you’re assessed the normal interest rate. About the author: Sara Rathner is a NerdWallet credit card and travel expert. She has been featured as a guest on “Today” program, Nasdaq as well as the CNBC’s “Nightly Business Report.” On a similar subject… Find the right credit card for you. Whether you want to pay less interest or earn more rewards, the right card’s out there. Answer a few simple concerns and we’ll refine your selection for you. Explore even more in Credit Cards Find out more money-savvy moves delivered straight to your inbox Sign up and we’ll email you Nerdy posts on the financial topics that matter most to you along with other ways to get the most from your money. Take all the appropriate money-making decisions

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