If you’ve ever found yourself in a scenario where you need to pay for something expensive with cash, you may have wondered, “Is it Possible to Get a Cash Advance Using a Debit Card?” “You certainly can,” is the simple answer to this query. You’ll almost certainly need to take out a cash advance on your debit card to pay for something expensive in cash. Here’s a quick rundown of how it works.
What is a Cash Advance?
A standard cash advance functions essentially as a small loan provided by your credit card issuer. You can basically borrow money against your credit limit. The cash advance is processed by an ATM or a bank, and you are given money. You may even apply for it online with some providers.
The amount you borrow will increase your credit card balance. The services may incur a cost from your credit card company. They will also charge a high cash advance APR.
Is it possible to get a Cash Advance using a Debit Card?
Yes, a cash advance can be obtained with your debit card. A credit card cash advance may be the first thing that springs to mind when you hear “cash advance.” With a credit cash advance, you use your credit card to withdraw money, and they add the amount you withdraw to your balance.
However, a debit card cash advance is totally different. A debit card cash advance takes money from your checking account rather than adding it to a revolving balance. A debit card cash advance is essentially the same as a cash withdrawal from an ATM.
How to get a Cash Advance using a Debit Card?
To withdraw a debit card cash advance, follow the tips below:
- Go to either a local bank or a credit union branch and have a chat with a teller.
- Request for a cash advance.
- Get the funds.
They will need you to pay a small fee to request the advance. This amount is normally a tiny percentage of your entire withdrawal.
3 benefits of using a debit card to take out cash advances
Since getting a debit card cash advance is the same as taking money from an ATM, you might wonder what the advantages are. It is beneficial for a variety of reasons. Among the causes are:
1. They don’t attract interest
When you use your credit card to request a cash advance, you will be charged a fee and interest. Worst of all, the interest rate it attracts will be higher than the average rate for your transactions. It will also prevent the one-month grace period. This implies that interest will accrue immediately. Using a debit card cash advance, on the other hand, does not incur any interest; only the first fee is charged. This makes it a less expensive way to get quick cash.
2. They come with higher withdrawal limits
You may have experienced a problem if you attempted to withdraw a large sum of money from your ATM. The quantity of money you can remove each day is limited. This is a far lower limit than the one for debit card advances.
3. You can use other banks
Even if the local bank is not linked with your bank, you may take out a debit card cash advance at any local bank. You can do this with other credit unions if you bank with a credit union. They do not restrict you to your bank, which is a tremendous advantage. So, know that not all banks accept cash advance requests. For further information, contact your bank.
What is the disadvantage of debit card cash advance?
The downside to this is that you cannot withdraw a cash advance on a debit card for more money than you have in your bank account. When people require emergency cash, it is usually because they do not have enough money to cover an unexpected expenditure. A debit card cash advance isn’t really useful in this circumstance.
As long as you have money in your bank account, you can acquire a cash advance with a debit card. A debit cash advance will work for you if you have money in your account and merely need to access it. However, if you require additional funds, this form of cash advance is ineffective. Essentially, you need to consider how much you need before taking out a cash advance through your debit card.