Credit card issuers allow you to withdraw a part of the credit limit assigned to the card as a cash advance or cash limit. This means you can withdraw cash up to that limit at any ATM using the credit card and a PIN. Though it is a very convenient facility when you are in urgent need of money, it comes with a heavy cost attached to it.
Financial experts will advise you that the use of the cash withdrawal facility using a credit card must be the last option and in very desperate circumstances. Here’s how you can go about getting a Chase credit card cash advance.
Understand the Cash Limit
Each credit card issuing bank or company follows its own policy on fixing a ceiling to the amount of cash you are allowed to draw using the card. In the case of the Chase credit card, it is generally 20% of the card limit. This means if you are holding a Chase credit card with a limit of $2000, you will be allowed to draw up to a maximum of $400.
How Are the Limits Fixed?
Any credit card issuer would first verify your credit-worthiness based on the documents you present to them in proof of your income and the credit rating you enjoy which will be accessed by them directly. The bank would want to know how much will be your capacity to repay if you are allowed the credit.
What about Cash Advance Limit?
In the case of cash advances, once you reach the full cash limit, you cannot draw any more cash until you repay the amounts already drawn. If you have cash advance and purchases too, Chase may use its discretion in allowing further cash advances.
Getting a Chase Credit Card Cash Advance
To get a Chase credit card cash advance, you will need a PIN. You may already have a PIN which is a unique code attached to your card. If you don’t have one, Call Chase at 800-297-4970 and request a PIN. Once you have the PIN, you can withdraw cash from the ATM using the card and the PIN.
In addition to withdrawing from the ATM, you might get cash advances in various other ways including withdrawals from bank and cash advance checks. If you use your chase credit card for purchases of casino gaming chips, lottery tickets, foreign currencies, or pay some third-party services, these will be considered as cash advances too!
Chase Cash Advance Fees And APR
As mentioned, Chase credit card cash advance comes at a cost. First, there is a one-time cash withdrawal fee of 5% of the cash withdrawn, subject to a minimum of $10 (a 3% fee of the amount with the Disney credit cards, min. $10). Then, you start repaying the cash loan through regular credit card repayments.
While the annual percentage rate or APR is between 13.49% and 23.49% for regular purchases using the credit card, when you draw a cash advance, the APR charged goes up to 19.49% and 25.24% (1). More importantly, the APR will be charged from the very same day you withdraw the cash. No grace period applies.
Are There Any Alternatives?
If you want to know whether there are alternatives to Chase credit card cash advance, the answer is Yes. If you are employed, you could approach your employer for a salary advance. Depending on the employer and the policies pursued by them, you may be able to get the cash which will be deducted from the next paycheck or in a few installments. There may be a small cost attached to this.
The other ways of getting cash at costs much lower than the Chase credit card cash advance include bank personal loans, 401 (K) loan, Roth IRA or just help from a friend or someone in the family.