What is a Credit Card Cash Advance and How Do I Make One?

What is a Credit Card Cash Advance and How Do I Make One?

You may have heard about a feature of credit cards called “cash advance.” But what exactly is it, and is it right for you? If it is, how do you actually make an advance on your PSECU credit card? Read on to learn more. 

What is a Cash Advance?

The credit card industry uses the generic term “cash advance.” So, when you read credit card disclosures or promotional materials, you’ll see references to “cash advance rate” and “cash advance fee.” Here’s the thing: although it’s called a “cash advance,” no actual cash may be involved unless you’re withdrawing from an ATM. Many people use the cash advance feature by simply moving funds electronically from the card’s line of credit into another account. 

At PSECU, we offer cash advances for both our Visa® Classic and Visa® Founder’s Card. Unlike other financial institutions and card issuers, we don’t charge a cash advance fee for the transaction. We also don’t charge a different rate for the cash advance. The same rules apply for both our cards, but you do need to know a few important details about our Founder’s Card and cash advances.

First and foremost, the Founder’s Card offers cash rewards, but cash advances are excluded from qualifying transactions. While the Founder’s Card can be used for cash advances, the interest rate is variable, meaning the rate could fluctuate. Contrast that with the 9.9% APR (subject to change) of our Classic Card, and you’ll see that if you’re considering advancing cash and you have the option, your Classic Card may be the best choice. 

Why Should You Use a Cash Advance?

If you’re in a situation where money is tight and you’re faced with a large, unexpected expense, you may not have the funds to cover it. A cash advance can give you access to the money you need quickly, without the hassle of applying for a loan or depleting your savings account. Additionally, a cash advance doesn’t require any collateral, so if you don’t have a home or vehicle as an asset to borrow against, a cash advance may be a good choice for you.

Making a Cash Advance

Making a cash advance has benefits. If you’re looking to get actual cash, use an ATM – all you need is your card and your card’s PIN. A cashless advance done electronically can provide much-needed funds in the case of an emergency or temporary loss of steady income. Know that as your trusted financial partner, we don’t recommend making cash advances part of your money management strategy. 

Experian cautions in their cash advance blog post, “that while a cash advance from a credit card doesn’t show up as a separate item on your credit report, it can hurt your credit score if it pushes your credit utilization ratio above 30%.”

Are you ready to make a cash advance? Here are the steps to do so with either of your PSECU credit cards. Note that for both cards, when you make the advance, interest will start to accrue immediately, which is another reason why you should use cash advancing only if you believe you can repay in a short timeframe.

ATM Cash Advances 

  • Note that the maximum daily withdrawal limit is $500, as long as you have that amount as available credit. 
  • Insert either card at ATMs that have either a Visa or Plus network logo. 
  • Enter your Visa PIN – Not your member account or debit card PIN. Forgotten your Visa PIN? You’ll need to call us so we can send it to you by mail. We do not keep any PINs on file. 

Electronic Cash Advances

When you advance using digital banking, you may advance up to your available credit limit.

Online Banking – After logging in at psecu.com:

  • Select Transfers.
  • In the Transfer from, choose the credit card you’re advancing from.
  • In Transfer to, choose the share and follow the prompts.

Mobile Banking – You have two options in mobile:

Option 1

  • Select Transfer & Pay.
  • Choose the card you’re advancing from. 
  • Select the share you’re transferring to and follow the prompts.

Option 2

  • On the main screen, click on the credit card you want to advance from.
  • Choose Advance Loan and follow the prompts.

Is a Cash Advance a Good Option for You?

Cash advances could be a good choice for you if you can repay the money quickly. With PSECU’s credit cards, you won’t pay any fees for using the cash advance feature, nor will you have to pay a steep cash advance rate. The cash advance rate matches the regular rate for both cards. Also, for both interest begins to accrue immediately.

Only you will know if making a cash advance is the right move. If it is, we’re ready to help.

For more ideas on how to use our products and services to save money and time, visit our WalletWorks page. 

The content provided in this publication is for informational purposes only. Nothing stated is to be construed as financial or legal advice. Some products not offered by PSECU. PSECU does not endorse any third parties, including, but not limited to, referenced individuals, companies, organizations, products, blogs, or websites. PSECU does not warrant any advice provided by third parties. PSECU does not guarantee the accuracy or completeness of the information provided by third parties. PSECU recommends that you seek the advice of a qualified financial, tax, legal, or other professional if you have questions.