When youâve depleted your savings and you urgently need cash, a cash advance may be the answer. While itâs an extremely expensive way to borrow, it can be a viable option when you have no other means to access cash.
If you have a Bank of America credit card, there are a few ways you can use it to receive cash. Read on to learn how to do it and what you should keep in mind before taking out cash from your credit card.
What is a cash advance?
A cash advance is a type of credit card transaction that allows you to borrow cash against your credit line. In a way, itâs similar to getting cash from your debit card, but cash advance terms can make such transactions very costly.
Cash advances come with their own set of terms that are different from those of regular purchases. Cash advance APRs are much higher than purchase APRs, and you donât get a grace period on a cash advance, meaning interest starts to accumulate right away. Plus, there are expensive fees to keep in mind.
This is why itâs best to avoid getting cash from your credit card. Explore all other options before turning to a cash advance to avoid putting a strain on your budget due to snowballing interest and fees.
However, if you find that a cash advance is indeed the best option in your situation, there are several ways you can get it with Bank of America.
How to get a cash advance with Bank of America
Bank of America offers four options for getting a cash advance.
Go to a Bank of America branch
You can request a cash advance in person at your local Bank of America branch. Make sure to bring your Bank of America credit card and a government-issued ID to verify your identity.
Use an ATM
You can get a cash advance from your Bank of America credit card from any ATM that displays Visa and Mastercard logos. Youâll need a PIN to use your credit card for this type of transaction â request it through your online account or call the number on the back of your card.
Get a convenience check
Another option to get cash from your Bank of America credit card is to use a convenience check. A convenience check works like a regular personal check that draws funds from your checking account, but the convenience check allows you to draw money from your credit line.
Banks sometimes mail convenience checks as a promotion, but if you havenât received any from Bank of America, you can contact the issuer to request them.
Deposit cash into your checking account
Probably the most convenient way to get a cash advance from Bank of America is to transfer funds directly into your checking account. Head over to your online account to request a cash advance. The deposit normally takes up to three business days.
Alternatively, for an extra fee, you can use the same-day transfer option to send money to your Bank of America checking account.
Note, however, that not all cardholders are eligible to use the deposit feature. If you try to request a cash advance this way and get a message that the transaction canât be completed, the issuer suggests calling in to discuss your options.
What to consider before getting a cash advance
While Bank of America makes it easy to get cash from your credit card, itâs important to be aware of how much a cash advance can cost you before you use this option.
Hereâs what makes cash advances so expensive.
Cash advance fees
For starters, thereâs a fee on taking out a cash advance in the first place. Youâll pay either $10 or 3% of the transaction amount, whichever is greater, if youâre using a direct deposit or convenience check.
If youâre using the same-day option to transfer funds to your Bank of America checking account, getting cash from an ATM or requesting a cash advance at a local branch, the fee will be $10 or 5% of the transaction amount, whichever is greater.
High interest rate
The most dangerous part of taking out a cash advance is its APR.
At the time of writing, the APR for cash advances on Bank of America credit cards is 27.24%. Considering thereâs no grace period on cash advances, and the interest begins to compound immediately, this type of debt can get out of hand rather quickly if you donât pay it off right away.
Note that some credit cards come with a significantly lower cash advance APR. For instance, you might want to look into theÂ PenFed Power Cash Rewards Visa SignatureÂ® Card, which only charges a 17.99% APR on this type of transaction. Itâs still expensive, but a much better option for a cash advance. On top of that, the card doesnât charge a cash advance fee.
There are multiple ways to get a cash advance from your Bank of America credit card, but itâs an expensive kind of debt. Itâs best to consider this option a last resort and work on building an emergency fund to avoid needing it in the future.