Credit cards offer great flexibility. You can also use cash back cards for points and for bonuses over time. A new card with a welcome bonus can lower the cost of a large purchase. However, buyers need to beware when using a credit card for cash.
If you get offers for 0% APR cards, you will often find checks inside the offer envelope. Using these checks to transfer funds to your bank account can give you low-cost money that you can use as needed. For folks who plan to use these dollars to pay down other debt, carefully review the APR terms so you can pay down the debt within the allowed time.
As professionals at SoFi state, “while it’s convenient to send money by credit card, it may be costly and it could impact your credit.” The fees can be punishing and the interest rate may well be higher. If you must send money from credit card to another account, make sure you pay off the balance as soon as the bill comes in.
Many of us don’t set up the PIN number on our credit cards to avoid cash advance fees. However, this means we may be stranded in an emergency. To easily move money to someone in distress, a money transfer service with an app can speed the process. Carefully review the rules to keep your fees low.
You can get cash with the help of a friend by
- paying them with a credit card through Venmo or PayPal
- asking them to move the money to their bank account
- withdrawing the cash from their account
There will be fees involved and borrowers should be aware that some credit cards treat these transactions as cash withdrawals. However, if you’re really stuck, this method can reduce your ATM fees.
The folks at customer service may be able to help you easily move money from credit card to bank account. Again, there will be fees and the interest rate on these dollars will likely be higher.
Do make sure to have your bank account numbers clearly visible before you start. It’s also a good idea to have some extra time cushion available; it may take time for the funds to show up in your bank account.
As a general rule, it’s not a great idea to use your credit cards for cash advances. The fees are usually higher than your debit card and the interest rate on these dollars is often much higher. If you can get a 0% APR offer, try to keep the total amount you transfer well under the max to avoid hurting your credit rating. If you’re in an emergency situation, the ability to pull cash off a credit card can be well worth the fees and interest. Do take the time to set up PIN numbers on your primary cards.