Why You Should Steer Clear of Credit Card Cash Advances
Think Twice Before Taking a Cash Advance
If you own a credit card, you’ve probably received offers to take out a cash advance. Most credit card companies allow their customers to withdraw cash—up to a certain limit—from an ATM or bank.
Before you do, it’s important to understand how costly this option can be. While a typical credit card purchase might have a 20% interest rate, cash advances often charge around 30%.
A Costly Example
Let’s say you need $1,000 to cover rent and a car payment. Your credit card allows a $1,000 cash advance, but there’s a catch—fees and high interest.
Most cash advance fees range from 2% to 5%. If the fee is 4%, that’s $40 upfront just to access your money. If you withdraw through an ATM, you might pay even more due to additional ATM fees.
Worse, interest on cash advances starts immediately—there’s no grace period. At a 30% interest rate, paying only $50 a month means you could repay around $1,500 over two to three years—just for borrowing $1,000.
A Smarter Alternative
If you own a paid-off or nearly paid-off vehicle, you might qualify for a car title loan. Embassy Loans has helped many people get fast access to emergency funds without sky-high interest rates.
You can get $1,000 or more by:
- Filling out a simple application
- Submitting basic documentation
- Having your car or truck appraised
The process can be completed in a day or two, and you’ll have access to your money right away.
Embassy Loans offers:
- Lower interest rates
- Flexible repayment terms (12–14 months)
- No credit checks, so approvals are faster
With a car title loan, you’ll gain quick access to cash and pay far less in fees and interest than with a credit card cash advance.
Need cash fast? Call (833) 839-2274 today and find out how Embassy Loans can help you get the funds you need—without the high costs of a credit card cash advance.
