Nowadays, most financial transactions can be made by electronic payment, but you may need to turn your credit card into cash. There are not many of these situations, but they certainly exist, and it is necessary to prevent them.
For example, you may have to pay a traffic ticket, and at the time, it must be paid in cash to get your car moved quickly. If you are in a hurry, this will be necessary, and you can’t wait to reflect on the fact that you don’t have money on the card and can’t withdraw at an ATM.
What can you do at this time? There are several solutions and methods to get your credit card exchanged for cash, so let’s look at them one at a time.
Ways to turn credit cards into cash
If you are in the circumstance that you need cash, but you don’t have it available in your bank account, this is of interest to you: you have several options available to you to get that cash.
However, you should know that nobody gives anything for free and that some of the methods we discuss here may involve some interests or conditions. Let’s see them!
Cash advances on credit cards
Credit card cash advances are one of the most common methods when a person needs quick cash and does not have it available in their line of credit.
There are several things to keep in mind: first, you need to check the terms of your credit card before you know how much money a cash advance would cost you, depending on the bank you are with and the contract you have.
Secondly, once you know that you can access a credit card cash advance, it is also important to remember that this advance will not be free. There is what is known as a transaction fee that you will have to pay for each passage.
That said, compared to the interest you can pay, for example, if you borrow on a payday loan, you will probably find it financially worthwhile. Always, as we say, find out what conditions your bank gives you.
Once you figure out if it is worthwhile to carry out this cash advance to pay for something, it is important to know how it is done.
Normally when you sign the agreement with your bank to receive such an advance, assuming the conditions and transaction payments to be made, they will give you instructions.
These instructions usually provide you with a PIN that you must enter at the ATM when you insert your credit card, which will provide you with the cash advance you have agreed to borrow.
The cashback rewards of a credit card
The other option you have to achieve this goal is cashback reward cards. As with the other option, you must check with your bank to see if they have this option for you when you need money urgently.
This method consists of having a credit card with this cashback reward activated. The prizes are obtained by regularly making purchases with that card, accumulating money you can later use in cash.
Of course, these rewards are limited and will normally be between 1% and 2% of the purchases you have made every month. The most positive part of this method of obtaining cash with your credit card is that there are usually no conditions attached to their use. That is, you will be able to use this option even if you have a bad credit score.
In short, there are several options for urgent cases where someone needs to obtain cash with their credit card. However, as these options involve you paying a percentage of the transaction, we recommend only using this option if you are in a real emergency.
Nowadays, paying for practically everything directly with a card is possible. Except for a few items, we recommend that you always pay with your card rather than committing to paying by these methods to have the money in cash.