Most of the time, your credit card or online banking is enough, but what happens when you need cash on hand for an emergency? A credit card cash advance might do the trick, but is it right for you? In this guide, we’ll show you how to get a quick cash loan on American Express in 2022.
Cash is still king. Thus, if you need money quickly, a cash advance on American Express is still one of the easiest ways to access cash.
A credit card cash advance functions the same way as a personal loan. So, instead of using your debit card to withdraw money that you already have in your bank account, you withdraw money from your credit card as a loan.
Essentially, you go to an ATM, insert your card, enter your credit card PIN number, then enter the amount you need. As long as you’re within the limit, you should be good to go, and the machine will dispense the money. The amount you take out will be billed on your credit card statement, and you will have to pay interest on it. Be wary of how much cash a machine can dispense at one time, as you might have to do the procedure more than once to get the money you need.
Nevertheless, borrowing money on American Express might be a little more expensive given its convenience, and there are still plenty of ways to get cash funds in a pinch.
How Do I Get a Cash Advance From My American Express Card?
If you decide on getting a cash advance, the process is relatively simple. Here’s how you can go about it:
Step 1
Get an American Express credit card with a PIN number so you can use it with an ATM machine. You can do this by calling American Express customer service at (800) 227-4669. Alternatively, you can access your online account or contact your bank in another way to help you get your PIN number.
Step 2
Go to an ATM, insert your card, access your credit card account, and withdraw the cash.
What Is the Cash Advance Limit?
The cash advance limit is usually linked to a percentage of the credit limit of your card. For example, if you have a credit limit of $10,000, you may only be able to access 30% of that amount. This is the reason why some people find the cash advance limit inflexible compared to other options.
How Much Are the Fees and Interest on a Cash Advance?
The interest rate levied is almost the same as you would get from your credit card, but this is applied as soon as the money comes out of the ATM. As for the fees, they are somewhat high.
For instance, most banks will typically charge anywhere between $5–$10 or 3% of the total amount, whichever is greater. If you’re taking $4,500, the charges will add up to $135.
Will It Affect my Credit Scores?
This is an interesting question, but here’s the quick word on it.
Getting a cash advance on your credit card will increase your credit utilization ratio. The lower your ratio, the easier it is for creditors to allow you to take on more credit. This is a good thing to think about if you’re trying to increase your credit score.
What Is the Grace Period on a Credit Card Cash Advance?
There is no pause after you withdraw the money with your credit card. As soon as the money comes out of the ATM machine, you start accruing interest on it.
What Bank Is Associated With American Express?
A lot of banks issue credit cards linked to American Express. This is because American Express is a large financial institution, allowing many banks to have a credit line with them—chances are you might have one in your wallet already.
The quickest way to find out if you’re eligible is to check if your card says American Express. Remember there are a lot of providers, such as Visa, MasterCard, JCB, etc. If you don’t have an American Express card, speak to your bank about other emergency loan options.
What Banks Do Cash Advance on American Express?
A lot of banks offer this service to their customers, but make sure to check with your bank or financial company to clarify.
In addition, speak with your bank before taking in any overdraft facility, loan, or credit. This will help you with your finances and keep everything in order when managing your personal account on your own.
A lot of people look at credit card loans as a way to get money quickly, but there are other options, such as a payday loan, paycheck advance, or speaking with your friends and family.
If you decide to take a cash advance with American Express, do your research. It is easy to get tempted to spread out your advances over multiple cards, which can be very problematic in the future when you want to build your financial future. People usually look at these types of card advances as a last resort in the event of a financial emergency.
