You can determine if you can get a cash advance primarily by checking your credit card's specific cash advance limit and your overall available credit.
Understanding Your Cash Advance Eligibility
A cash advance allows you to borrow cash against your credit card's credit limit. However, it's crucial to understand that it operates differently from regular purchases.
1. Your Dedicated Cash Advance Limit
Most credit cards have a separate, lower limit specifically for cash advances than your overall credit limit for purchases.
- How to find it: You can typically find your cash advance limit by reviewing your credit card's terms and conditions or by checking your monthly credit card statement. These documents will clearly outline the maximum amount you can take out as a cash advance.
- Online/App Access: Many card issuers also allow you to check your available cash advance limit by logging into your account online or through their mobile app.
2. Your Overall Available Credit
Even if you haven't reached your specific cash advance limit, your ability to get a cash advance is also tied to your total available credit.
- Impact of Purchases: If you've utilized a significant portion or all of your overall credit limit on purchases (e.g., shopping, bills), you may not be able to take out a cash advance, even if you still have room under your separate cash advance limit. The cash advance amount comes out of your total available credit.
- Example: If your total credit limit is \$5,000, your cash advance limit is \$500, and you've already made \$4,800 in purchases, you only have \$200 of overall credit remaining. In this scenario, you would only be able to get a cash advance of up to \$200 (if you haven't hit your \$500 cash advance limit) – not the full \$500 cash advance limit – because your overall available credit is the limiting factor.
3. Steps to Confirm Your Eligibility
To definitively know if you can get a cash advance:
- Check Your Statement or Online Account: Look for your cash advance limit and your current available credit.
- Calculate Remaining Credit: Subtract your current balance (including purchases) from your total credit limit.
- Compare Limits:
- Is your current available credit greater than \$0?
- Is the amount you wish to advance less than or equal to both your cash advance limit and your overall remaining available credit?
If the answer to these questions is yes, you likely can get a cash advance for that amount.
Important Considerations
Remember that cash advances typically come with high fees and interest rates that often start accruing immediately, without a grace period. Always weigh the costs before opting for a cash advance.
