Pros of taking out a cash advance
At the time of issuing your cash advance, most credit issuers will tack on a fee of 3%-5% for the withdrawal. For your $1,000 cash advance, you may end up paying $50.
Minimum monthly credit payment
While there are no requirements in terms of how long it takes you to pay back your cash advance, you will still need to make your minimum monthly credit payment each month.
Pros and cons to cash advances
As with any type of money lending, there are always advantages and disadvantages to consider. Here are the main pros and cons you should be aware of when considering taking out a cash advance:
The most significant selling point to a credit card cash advance is its speed. A cash advance can get you a lump sum of cash in a few days max. And many times, you can get that chunk of change on the spot. It’s also simple. There’s no need to go through third-party lenders or meet with a loan representative. You simply need to see a teller. And if your credit card has an associated PIN, you may be able to do the whole thing through an ATM.