You just found out you have a sudden expense that you can only pay in cash. You don’t have the cash on you to cover it. What can you do? You might be able to get a cash advance on your debit card.
Find out how debit card advances work and when to use one.
A traditional cash advance works as a small loan that comes from your credit card company. You borrow the money against your credit limit.
A bank or ATM processes the advance and gives you cash. Some lenders let you apply for a cash advance online.
The amount you borrow gets added to your credit card balance. Your credit card company will likely charge a fee for the services, as well as a special cash advance APR.
Unlike your normal credit card balance, this high interest rate doesn’t have a grace period. It starts accruing immediately.
These added costs can make a credit card cash advance an expensive way to get money quickly.
Fast Cash, No Credit Check.
You can’t get a traditional cash advance loan using your debit card account. However, debit cards have their own type of cash advance that’s different from credit card advances.
A debit card advance isn’t a loan. Much like using your debit card at a store or ATM—you’ll need to have the money in your checking account.
This means you can’t get an advance for more than you already have, which could be a problem if lack of funds is the root problem and not simply a lack of cash on hand.
You’ll also need to visit a bank or credit union branch in person to ask for the advance.
You can go to almost any local bank or credit union—they don’t have to be your bank. However, expect to pay a fee for the service.
Getting a debit card advance is simple.
Follow these steps to get a cash advance from your debit card:
While ATMs are great for withdrawing quick cash, your account will have a daily ATM limit.
You can’t withdraw more than your daily limit—even if you visit a different ATM.
If you need cash for a large purchase or have already withdrawn a lot of money, you’d be out of luck.
A debit card advance is a lot like withdrawing from an ATM. The difference is you’ll need to physically visit a bank branch for the transaction.
Traditional credit card advances can often lead to debt spirals. Interest charges and fees might leave you with even less cash flow than before you got the advance.
Debit card advances, on the other hand, don’t have the same drawbacks. There’s no interest and the fees are usually minimal.
That doesn’t mean you should go out and get one. Like everything, debit card cash advances have their pros and cons.
If you’re in a pinch for cash, debit card advances aren’t your only option. You may be able to get the cash you need by:
Whether or not you should get a cash advance on your debit card depends on how much money you need—and how much you have.
A debit card advance only works if you already have the money in your bank account. If you have the money and just need to access it, a debit advance could work for you. However, if you need additional funds, a debit advance won’t help.