The only way to avoid cash advance fees is to avoid taking out a cash advance. It may seem obvious, but you’ll be hard-pressed to find any type of cash advance that doesn’t come with interest charges and additional fees.
Cash advances come in many different forms. But one thing that connects them all is that you’re likely to pay interest and additional fees on any cash advance you use. But this isn’t specific to cash advances. Any loan, credit card, line of credit, or other financial product is going to come with interest and fees. It’s just a fact of life.
The term “cash advance” is used to describe a few different types of financial products. Below are the most common forms of cash advances:
Employer Cash Advance – This is when you get a cash advance from your employer and they take it out of your next paycheck. Some employers may be willing to offer this while others may not. The specific amount you can get and whether or not they’ll charge you interest will depend on your specific relationship with your employer.
Credit Card Cash Advance – This is when you use your credit card to take out actual cash. You can sometimes do this at an ATM, at a storefront bank, or online by transferring money from your credit account into your checking account. The thing to keep in mind is that there is no grace period for credit card cash advances. This means the interest will start to accrue immediately. There may also be additional charges or fees for using a credit card cash advance.
Payday Loan Cash Advance – Payday loans are sometimes referred to as cash advance loans. These are unsecured, short-term loans that are typically used by borrowers with low credit scores. They offer a small amount of cash and a short repayment period (usually only two weeks).
No matter which cash advance you choose, there will likely be interest charges plus additional fees. Make sure you’re fully aware of these before choosing one of these options.