Many credit card companies allow customers to take out cash advances around the clock. This service is more convenient and easily accessible than traditional loans – all you need is an active credit card. The amount of money you can borrow depends on your credit limit, among other factors. If you have a Discover credit card, you can get cash directly from an ATM or bank teller.
The easiest way to get a cash advance with Discover is to transfer money from your card to your checking account. Simply log in to your Discover account, set up a PIN and initiate the transfer.
What Is a Cash Advance?
A cash advance may come in handy when you're dealing with emergency expenses. For example, you could use the money to fix your roof. Some consumers use this service when shopping at mom-and-pop stores, farmers' markets or other establishments that only accept cash. Think of it as a short-term loan from your credit card provider. Basically, you're borrowing money against your credit limit.
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Applying for a traditional loan can be complicated and time-consuming. On top of that, it doesn't make sense to take out a loan if you only need $50 or $100. A cash advance makes it easier to get the money you need when you need it. Depending on the credit card issuer, you may be able to withdraw cash from an ATM or write a check to yourself. If you choose to go to the bank, you'll only need to show your ID and credit card to obtain a cash advance.
The downside is that most credit card companies charge both interest and upfront fees, and you may also pay ATM fees. Plus, interest rates kick in as soon as you receive the funds. Credit cards, by comparison, come with a grace period of at least 21 days, explains the Consumer Financial Protection Bureau. They may also include purchase protection, rewards points and other perks. That's not the case with cash advances.
Discover Card Cash Advance Basics
With over 415,000 ATMs, Discover is one of the largest credit card companies in the U.S. Its customers can take out cash advances whenever they need money for emergency expenses. To use this service, you'll need a Discover Card, a PIN and a photo ID. So, if you're wondering how to get a cash advance on my Discover Card, follow these steps:
- Log in to your Discover online account via the company's website or mobile app.
- Set up a PIN and then use it to withdraw cash from ATMs using your Discover Card.
- If you already have a PIN, you can change it from your online account.
Another option is to make a direct deposit to your checking account. First, log in to your Discover account and check the eligibility requirements. If you qualify for this service, go ahead and transfer money from your credit card to your checking account. A third option is to use your Discover Card to get a cash advance from TD Bank, Citibank, First National Bank, Wells Fargo or another major national bank. Remember to bring your ID card.
Discover also offers convenience checks, or cash access checks. Contact the company at 1-800-347-2683 to check your eligibility. These blank checks are linked to your credit card account and can be used to access cash without swiping the card.
No matter what method you prefer, you'll pay interest, ATM fees and transaction fees. Check your cardholder agreement for more information on the costs associated with this service. Additional fees may apply if you withdraw the money in a foreign currency.
Transaction fees range from 3 to 5 percent of the cash advance, depending on the credit card issuer. The annual percentage rate (APR), on the other hand, can be as high as 29.99 percent, reports Forbes.