As a Bank of America customer, if you have more money and want immediate funds, a Bank of America cash advance charge may be the next realistic alternative.
While this is an incredibly expensive kind of borrowing, it may be the only alternative if you have no other ways of obtaining cash.
If you have a Bank of America credit card, there are a few methods to obtain cash.
We will explore all you need to know about the Bank of America cash advance charge and what a cash advance is in this post.
Additionally, we will discuss how to obtain one if you ever find yourself in a circumstance where a cash advance is a possibility.
Continue reading to understand how to accomplish it and what to consider before withdrawing cash from your credit card, such as a Bank of America cash advance charge.
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A Cash Advance is a term that refers to a short-term loan.
To begin, let’s define a cash advance fee for the sake of this article on Bank of America’s cash advance fee.
A cash advance is a form of credit card transaction that permits you to borrow money against your available credit.
While this is akin to withdrawing cash from a debit card, cash advance terms may make such transactions extremely expensive.
Cash advances have their own set of terms that are distinct from those associated with other types of transactions.
Advance on cash APRs on cash advances are far higher than those on purchases, and there is no grace period, which means interest begins accruing immediately.
Additionally, there are costly costs associated with cash advances, such as the Bank of America cash advance charge.
This is why it is recommended to avoid using your credit card to obtain cash. Consider all alternative possibilities before obtaining a cash loan to avoid putting your budget under strain owing to snowballing interest and penalties.
However, if you determine that a cash advance is the best option for your case, Bank of America offers many options to avoid paying a cash advance charge.
How to Obtain a Bank of America Cash Advance
Now that you have a basic idea of what a cash advance is, let’s look at how you may obtain cash from Bank of America before discussing the bank’s cash advance cost.
While various banks may provide different methods for obtaining a cash advance through your credit card, Bank of America offers four distinct methods. These include the following:
• Visit a Bank of America location
You may apply for a cash advance in person at a Bank of America location near you. Bring your Bank of America credit card and a government-issued identification with you to verify your identity.
You may obtain a cash advance from any ATM that shows the Visa or Mastercard logos using your Bank of America credit card.
To use your credit card for this sort of transaction, you’ll need to get a PIN using your online account or by calling the number on the back of your card.
A convenience check is another way to obtain cash from your Bank of America credit card.
A convenience check functions similarly to a personal check in that it takes cash from your checking account, but it also allows you to draw monies from your credit line.
Banks occasionally mail convenience checks as a promotional item, but if you haven’t got any from Bank of America, you can request them from the issuer.
• Make a cash deposit into your checking account.
Probably the most simple method of obtaining a Bank of America cash advance is to have monies sent immediately into your bank account.
To obtain a cash advance, go into your online account. Normally, it takes up to three business days for the deposit to be processed.
Alternatively, for an additional cost, you may send money to your Bank of America checking account using the same-day transfer option.
Not all cardholders, however, are qualified to use the deposit option. If you attempt to obtain a cash advance in this manner and receive an error message indicating that the transaction cannot be completed, the issuer recommends phoning in to explore your alternatives.
Consider the Following Before Obtaining a Cash Advance
Now that you know how to obtain a Bank of America cash advance in the event that you want one, let’s examine some of the critical factors to consider and keep in mind while obtaining a cash advance.
While Bank of America makes it simple to obtain cash using your credit card, it’s critical to be informed of the costs associated with cash advances before utilizing this option.
Here are the factors that contribute to the high cost of cash advances at various banks, including Bank of America cash advance costs.
To begin, there is a cost associated with obtaining a cash advance. If you use a direct deposit or convenience check, you’ll pay either $10 or 3% of the transaction amount, whichever is bigger.
If you’re transferring funds to your Bank of America checking account utilizing the same-day option,
When using an ATM or requesting a cash advance in a local branch, the cost will be either $10 or 5% of the transaction amount, whichever is larger.
The most perilous aspect of obtaining a payday advance is the APR.
At the time of writing, the annual percentage rate (APR) for Bank of America credit card cash advances is 27.24 percent.
Given that cash loans have no grace period and interest begins compounding immediately, this sort of debt can swiftly spiral out of control if not paid off immediately.
Take note that certain credit cards offer much reduced APRs on cash advances.
For example, you may like to investigate the PenFed Power Cash Rewards Visa Signature Card, which carries a low APR of 17.99 percent on this sort of transaction.
While this is still a costly choice for a cash advance, it is a far better one. Additionally, the card does not charge a fee for cash advances.
How to Get a Cash Advance From Bank of America
Bank of America does not classify all transactions as cash advances. Other deals that fit within this category include the following:
• Bail bondsmanship
• Casino chips
• Currency exchange
• Purchases of lottery tickets made outside the United States
• Orders for money
• Protection against overdrafts
• Money transfers between individuals
• Online transactions made the same day
• Passports and traveler’s checks
Fees for Bank of America Cash Advances
With a basic understanding of what a cash advance is, how it works, and how to obtain one, let’s look at the Bank of America cash advance charge.
Bank of America cash advances come with two different fees and interest rates, depending on the transaction.
1. ATM, over-the-counter, same-day online, overdraft protection, and cash equivalents are charged at a rate of 5% of the transaction amount, with a minimum of $10. The average APR for cash advances is 26.49 percent, although it varies per card.
2. The expense of direct deposit and check cash advances A 3% charge on the total, with a minimum of $10. The average APR for cash advances is 26.49 percent, although it varies per card.
For instance, a $500 ATM cash withdrawal is subject to a $25 cash advance fee immediately upon completion of the transaction. Certain ATMs may levy an extra $3 transaction fee.
If you want to repay the debt after 30 days, you will incur about $11 in interest. Your $500 cash withdrawal has been increased to $539. If you deposit your $500 by direct deposit, the fee may be as low as $522.
When is the Best Time to Apply for a Credit Card Cash Advance?
A cash advance on a credit card is costly in practically every bank; the Bank of America cash advance charge is no exception.
If you use your credit card to withdraw cash from an ATM, you can generally anticipate being charged;
• A one-time cash advance charge, which is normally 3% of the withdrawn amount.
• If your card is issued by a different bank than the ATM, you will frequently be charged an ATM fee.
• An interest rate that is significantly greater than the APR on your transaction.
Worse worse, the majority of cash advance transactions do not have a grace period, which means interest begins collecting immediately.
For instance, the BankAmericard Cash Rewards credit card imposes a Bank of America cash advance fee of either $10 or 3% of the transaction amount, whichever is larger.
It then charges a 25.24 percent interest rate on cash advances, compared to a 13.24 percent – 23.24 percent interest rate on purchases.
If you borrow $300 for 15 days, you may wind up paying approximately: $10 for the cash advance charge, $4.50 for the ATM cost (on average), $3 in interest for 15 days, and $17.50 in total for the loan.
Although $17.50 may appear to be an exorbitant price, it is really less expensive than these two choices.
To Begin, Use A Bank Overdraft
Bank overdraft costs are significantly higher. Overdraft fees are normally imposed on a per-incident basis and average $34.
At Bank of America, each transaction would cost $35. (up to four per day). After five days, you will be assessed a $35 extended overdraft fee.
If you borrowed $300 for 15 days using Bank of America’s normal overdraft, you would pay a total of $70.
In this case, utilizing the cash advance option on your credit card would be less expensive than utilizing the overdraft feature on a standard checking account.
2. Pay a Visit to a Payday Lender
Payday lenders, on the other hand, might be considerably more costly. According to the Consumer Financial Protection Bureau, a typical payday lender charges between $10 and $30 for each $100 borrowed.
A payday loan is typically for 15 days. If you borrowed $300 for 15 days from a payday lender, the total cost would be between $30 and $90.
In certain circumstances, payday lenders might be less expensive than overdrafts. However, obtaining a cash advance on a credit card remains the least expensive choice.
How To Locate The Most Economical Cash Advance Credit Card
If you’re not a fan of the Bank of America cash advance cost associated with your existing Bank of America credit card, you may always switch to a credit card with lower fees.
If you believe you may want a short-term loan in the future, it is prudent to look for and obtain the lowest credit card prior to an emergency. Certain credit unions even provide credit cards with no cash advance cost.
MagnifyMoney (where I work) conducted a market analysis lately and discovered 20 credit cards issued by credit unions that do not impose a cash advance fee.
PenFed is the finest credit union on the list. Not only will there be no cash advance fee, but the interest rates on cash advances will be far lower than those given by regular banks.
For instance, the PenFed Promise credit card offers a cash advance APR of 10.24 percent – 17.99%. The largest charge associated with borrowing $300 for 15 days with PenFed would be the ATM fee.
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