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Understanding Cash Advance Limits on Your Credit Card
- Credit cards provide cash advance options for emergency cash, but limits apply.
- A cash advance is like a loan taken out from your credit card, allowing you to withdraw money from an ATM with your credit card.
- A cash advance limit is placed on the maximum amount you can withdraw with your credit card, typically lower than your regular credit limit.
- The limit assures the credit card provider that you’ll be able to pay back the loan, and part of your credit limit still remains available for other purchases.
- Before taking out a cash advance, take note that they have higher interest charges and different fees compared to regular credit card purchases.
- Knowing the cash advance limit can help you plan your purchases, and you should not let the withdrawal max out your limit.
- It’s wise to consider alternative options before using a cash advance, such as borrowing from family or friends.
- If using a cash advance, make sure you are doing so wisely, keeping the amount within reason and limiting it to emergencies.
- Most credit card providers don’t count cash advances as transactions that can earn reward points or cashback.
- Consider turning off cash advances on your credit card as a security measure against unauthorized withdrawals.
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