We’ve all been there at one time or another in our lives. You know, that time when there is just a little too much month left at the end of your money? A looming bill or an unexpected emergency could put you in a financial bind.
Being thrown into such a situation is always stressful, but there are options at your disposal, such as obtaining a Capital One cash advance.
What Is a Cash Advance?
A cash advance from a credit card is basically a short term loan through which you can obtain cash quickly. Instead of using your debit card, you would use a credit card at an ATM location to withdraw funds.
But just as there are interests and fees associated with using a credit card, similar traits apply to cash advances. The process is simple, but the fees associated with the convenience of getting money quickly in a pinch can be significant.
How to Go About Getting a Capital One Cash Advance?
First, keep in mind that while you can have as many cash advances as you need, it must be within your designated limit. This information can be found in the “Available Credit for Cash advances” on your most recent credit card statement.
Second, you will need to use the PIN associated with your Capital One credit card. If you do not know or recall the PIN, you can reset it online in the “More Account Settings” section, or by calling 1-800-227-4825.
Even without a PIN, you can still acquire a cash advance from a physical bank using your credit card. You will need some forms of identification, like your driver’s license, as well as your Capital One credit card. This works as long as the bank displays a MasterCard or Visa logo.
Then you need to pick the ATM of your choice, not necessarily a Capital One bank one, but you should keep in mind that aside from any fees imposed on the transaction already, there likely will be additional fees from the bank whose ATM you use and cash advance limits.
Finally, to get the cash advance you would simply insert your credit card into the ATM and enter your PIN, then select the cash advance option and choose the amount (within the aforementioned limit) to receive your cash advance.
Capital One Cash Advance Fees
There are multiple fees associated with getting a cash advance. First, there are the fees for the use of an ATM (especially that of a different bank). Also, most Capital One credit cards impose a fee of either $10 or 3% of your cash advance, whichever amounts to a bigger dollar amount.
Also, the APR for cash advances is significantly higher than the APR applied to credit card purchases. The variable rate for cash advances can fall between 23.74% and 28.24%, and the interest begins accruing right away, which means that the large fees will add up quickly.
Alternatives to Cash Advances
One option is to use credit cards for your purchases instead of getting a cash advance. Another is to consider a personal loan. The personal loan might provide lower interest rates, but it takes more time to process. You need to apply, be approved for, and receive the money.
Borrowing from friends or family, though not an option for some people, is another potential method. It would almost certainly be much less costly. But before taking this action, think through the potential consequences of borrowing from these people.
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There are no easy outs from an unexpected financial situation, and while the stress of the situation is apparent, and while it is good to know your options, you should always make an informed decision, because if the situation does not call for immediate cash, and all other options have not yet been exhausted, it might be best to avoid future financial stress by avoiding cash advances altogether.