Can You Get a Cash Advance on a Debit Card?

Debit card purchases have made buying and selling relatively easy. You no longer need to carry a wad of cash around before you can buy groceries or pay your bills. It’s now easier to withdraw money from ATMs and pay for goods and services.

Before now, people did these with cash, which posed many risks. Now, with the swipe of a debit card, you pay for bills and purchases with your account balance. More than what you have in your account, there is also the possibility of a credit card cash advance. You might be wondering if you can take out a cash advance with a debit card.

Getting a Cash Advance on a Debit Card

It’s normal to wonder if one can get a cash advance on a debit card, similar to what credit cards offer. It’s common to get a credit card cash advance since that’s what it’s for. But can a debit card be used to get more cash than your balance reflects? There are few differences between getting a cash advance on credit and a debit card.

You can get extra cash to pay for certain services when you’ve exceeded the withdrawal limit on the ATM. Most accounts have a daily withdrawal limit, which could be anything from a hundred dollars, depending on the account type. Once in a while, you could find out that you’ve exceeded the set daily limit. It is often frustrating, especially when you have an urgent need for extra cash.

All you need to do is to go into a bank, even if it’s not your bank, to make a request. The bank will process a debit card cash advance, as long as you still have cash in your account. All you need is to walk up to a teller, provide the necessary information, and they’ll allow you to have an advance.

Not all banks will provide you this service. You can contact your bank’s customer care to know if they offer the service to you. That’s in the case where there’s no local branch of your bank around to provide this service directly. You would be charged only a processing fee on the cash advance. After paying the processing fees, lenders won’t charge you any interest rates since the money came from your checking account. Another good thing is, you’ll be allowed to withdraw more cash in advance, giving you a higher limit than the ATM.

The charges on having a cash advance from your bank balance are fair. However, you may not be able to access as much as you would get from a credit card. You won’t have to pay any accrued interest, though. A cash advance on credit cards won’t allow you a grace period once you reach the credit limit. Interests start accruing on the amount borrowed over a specified period. It doesn’t apply with a debit card cash advance, though. You only pay a percentage of what you borrowed.

Bank’s annual percentage rate varies, so you might think of contacting your bank or credit union before processing the transaction. Lenders usually process the cash advance fee for a specific amount or a percentage of what you withdraw. Some banks will charge you on whichever is greater of the accrued amount, while others may charge based on the lesser. Typically, an ATM won’t allow you to exceed the daily withdrawal limit. When withdrawing from a teller, you can access more cash from your account than the daily limit an ATM imposes. So yes, you can get a cash advance on debit.

When Can’t You Get Cash Advances on a Debit Card?

Debits card transactions deal with the money you have in your account. You can withdraw this money with an ATM and make purchases with it. When you exceed your daily withdrawal limit on the ATM, you can still check with a bank to get an advance for a nominal fee.

However, it doesn’t apply when you don’t have cash in your account, like when using your credit card. With credit cards, you can get a cash advance even if you don’t have it in your account. This service doesn’t work with debit cards. You need a credit card to get this credit service. It allows you to make transactions much higher than what you have in your account.

Hence, you might need to seek other options if you need more cash than what you have in your bank balance with debit cards. If you have an overdraft facility from your bank, that might be a plausible solution. However, it comes with high-interest rates than a cash advance from your bank balance.

Benefits of Taking a Cash Advance on Your Debit Card

The idea of getting an advance might not be the best, especially when you think of the extra charges you have to pay. You may wonder if a debit card advance can be beneficial in any way. Well, there are benefits to having access to more cash than you can generally access. When you weigh the benefit against a cash advance check on a credit card, you’ll see you have more to gain.

Timely Cash on Emergencies

Emergencies don’t happen all the time, but they have to be promptly attended to when they do. Having access to a cash advance when you can’t possibly get it on via your card on the ATM will take out the momentary frustration. With a debit cash advance, you may be able to get more done on time than if you had to wait till the next day.

Lower Interest Rates

Generally, the interest rate on cash transfer varies and may depend on the credit card company. However, it is still lesser than credit cash advances interest, which is accruing immediately after the transaction is processed. It hikes the amount you need to pay, and if not repaid on time, might even exceed the amount cashed in advance. With a debit card cash advance, you won’t have to worry about this happening.

No Credit Scores to Worry About

With debit cash advances, you won’t have to worry about credit scores. You’re borrowing money in advance from your account, instead of the bank. You won’t need to worry about having a low credit score like many credit card holders would. This way, you can stay in charge of your personal finance without worrying about exceeding a limit.

Disadvantages of a Debit Card Cash Advance

Limitations on the Withdrawal Amount

Having a debit card means settling on only spending what you have in your account. Yet, there’s still a limit you can have access to in your checking account daily. This limitation can be frustrating when you need cash for emergencies.

Once you’ve used up all that’s in your account, a debit card cash advance is impossible. It puts you on edge and forces you to look elsewhere for cash. Typically, people with many credit cards rarely have to go through this problem. The credit card companies provide a line of credit that makes withdrawing money possible when they need it.

Not All Banks Will Give You a Debit Card Advance.

Keep in mind that if you find yourself needing a cash advance on your card, you’ll need to find a bank or credit card union that provides the service. The downside is that if your bank doesn’t have a branch or any affiliated bank where you at, you won’t be able to process a cash advance. You might have to wait till the next day or look elsewhere for cash.

Possible Impulsive Spending

We often want an advance on emergencies, but a cash advance on your card could also trigger impulsive spending. The withdrawal limit on your card at the ATM makes it easy to regulate spending. But it could be challenging to resist a temptation to spend money impulsively when you have access to a cash advance. Since cash advances come at relatively lower interest charges, we could be quick to opt for it on something impulsive.

Credit Card Cash Advances or Debit Card Cash Advances?

Depending on the card you hold, it’s best to avoid cash advances in all. However, you might find it necessary to process a cash advance in emergencies. Both have fees charged on them, plus interest accruing on credit card advances.

A debit card advance is a better alternative if you have some cash in your bank account. Where you don’t have this option or the balance is insufficient, an advance from your credit card will come in handy. IIf you have both cards, you might think of transferring more funds from the incomplete account to the balance with the highest funds.

Final Thoughts

If you ever find that you don’t have much cash and need to use a debit card cash advance, you don’t have to worry about it. With some small cash advance fees, you can get some extra cash above your daily limit.

All you need to do is verify the charges with your card issuers and confirm the affiliate banks that offer this service. You can also see these related articles for more info about your bank transactions.