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Can You Take Cash Out of a Capital One Credit Card?
If you’re in a pinch and need quick access to cash, you might wonder, “Can you take cash out of a Capital One credit card?” The short answer is yes, you can. Capital One offers cash advances, which let you withdraw cash using your credit card.
However, before you go ahead, it’s important to understand how cash advances work, the costs involved, and the potential drawbacks. This blog post will explain everything you need to know about taking cash out of your Capital One credit card.
How Does a Cash Advance Work?
A cash advance allows you to borrow money from your credit card to be withdrawn as cash. You can get cash from an ATM or a bank branch, using your Capital One credit card. However, keep in mind that a cash advance is different from a regular purchase.
While you can use your card to make purchases with little to no interest if you pay off your balance in full, cash advances typically come with high fees and a higher interest rate.
When you withdraw cash using a Capital One credit card, you are essentially borrowing money that you will need to pay back, with added costs. This is why it’s crucial to fully understand how the process works and the associated costs before proceeding.
How to Get a Cash Advance from a Capital One Credit Card
Now that you know cash advances are possible, let’s look at the two primary ways you can take cash out of your Capital One credit card: using an ATM or visiting a bank branch.
1. At an ATM
One of the easiest ways to take cash out of your Capital One credit card is through an ATM. Follow these simple steps:
- Step 1: Insert your Capital One credit card into the ATM.
- Step 2: Enter your PIN (personal identification number).
- Step 3: Select the “Cash Advance” option.
- Step 4: Choose the amount of money you want to withdraw.
Most ATMs will allow you to take out cash from your credit card, though some may have withdrawal limits, especially if you’re using an ATM outside your bank’s network.
2. At a Bank Branch
If you prefer to get cash from a bank branch, you can take your Capital One card to a physical bank. To do this, follow these steps:
- Step 1: Visit a bank branch.
- Step 2: Provide a government-issued photo ID (like a driver’s license or passport).
- Step 3: Hand over your Capital One credit card to the bank teller.
- Step 4: Specify the amount of cash you want to withdraw.
The teller will then process your request and give you the cash. This method may involve additional fees if you’re withdrawing money at a non-Capital One branch.
Fees and Interest Rates on Cash Advances
Now, let’s talk about the costs associated with cash advances on your Capital One credit card. Understanding these fees and interest rates is essential before you decide to take cash out of your Capital One credit card.
Cash Advance Fees
When you take a cash advance from your Capital One credit card, there’s a fee. This fee is either:
- $5, or
- 5% of the cash advance amount, whichever is greater.
For example, if you take out $100, you’ll pay a fee of $5. However, if you take out $1,000, the fee would be $50 (5% of $1,000). Be aware that the fee will be charged immediately and will be added to your credit card balance.
Higher APR for Cash Advances
In addition to the fees, cash advances come with a higher APR (annual percentage rate) than regular purchases. Typically, the APR for cash advances is significantly higher, which means you’ll end up paying more in interest if you don’t pay off your balance quickly.
For example, the standard APR for purchases might be around 15%, but the APR for cash advances can range from 24% to 29%, depending on your credit card agreement. This higher APR means that you’ll accrue interest on your cash advance much faster, making it more expensive in the long run.
No Grace Period for Cash Advances
Another key point to keep in mind is that there is usually no grace period for cash advances. With regular credit card purchases, you may have a grace period (usually around 25 days) to pay off your balance before interest starts to accrue. However, cash advances start accruing interest immediately from the day of the transaction.
This makes it even more important to pay off your cash advance as quickly as possible to avoid high interest charges.
How to Find Your Cash Advance Limit
Like your regular credit card limit, Capital One also assigns a specific cash advance limit. This is the maximum amount of money you can withdraw using your credit card.
You can find your cash advance limit by:
- Checking your credit card statement: Your cash advance limit is typically listed on your monthly statement.
- Logging into your account online or via the Capital One mobile app: You can also find your cash advance limit by logging into your account and viewing your available credit details.
If you’re unsure about your limit, you can always contact Capital One customer service to get specific information.
Other Methods to Get a Cash Advance
In addition to withdrawing cash at an ATM or bank branch, there are other ways to access cash from your Capital One credit card. Here are a few options:
Convenience Checks
Capital One may send you convenience checks, which you can use to access a cash advance. These checks function like regular checks, but when you deposit or cash them, it’s treated as a cash advance on your credit card.
To use a convenience check, you simply write the check out to yourself or someone else, and then deposit or cash it. The funds will be processed as a cash advance, and you’ll incur the same fees and interest rates.
Cash Transfer to a Bank Account
Some credit cards allow you to transfer funds directly from your credit card to your bank account, treating the transfer as a cash advance. While this option may not be available with all Capital One credit cards, it’s worth checking if it’s an option for your account.
The Downsides of a Capital One Cash Advance
While a cash advance can provide quick access to funds, it’s important to remember that there are some significant downsides. Here are a few reasons why you should think twice before taking cash out of your Capital One credit card:
- High fees and interest: As mentioned earlier, cash advances come with high fees and a higher APR, which can quickly add up if you carry a balance.
- Immediate interest: Interest begins accruing immediately with a cash advance, unlike regular purchases where you may have a grace period.
- Cash advance limits: Your credit card will have a limit on how much cash you can advance, and it may not be as high as your regular credit limit.
- Credit utilization: Taking a cash advance increases your credit utilization, which can negatively impact your credit score if you carry a balance.
Alternatives to a Capital One Cash Advance
Before resorting to a cash advance, consider other options that may be more cost-effective:
- Personal loans: If you need a larger sum of money, a personal loan may offer a lower interest rate than a cash advance.
- Borrow from family or friends: If possible, borrowing money from someone you trust can help you avoid high fees and interest charges.
- Balance transfers: If you have another credit card with a 0% introductory APR on balance transfers, you could transfer the balance and pay it off without accumulating interest.
Frequently Asked Questions
Here are some of the related questions people also ask:
Can I withdraw cash from my Capital One credit card?
Yes, you can withdraw cash from your Capital One credit card through a cash advance at an ATM or a bank branch. However, cash advances come with fees and higher interest rates than regular purchases.
How much does a Capital One cash advance cost?
Capital One charges either a $5 fee or 5% of the cash advance amount, whichever is greater. You’ll also face higher APRs for cash advances compared to regular purchases.
What is the APR on a Capital One cash advance?
The APR for cash advances on a Capital One credit card is typically higher than for regular purchases, usually ranging between 24% to 29%, depending on your credit card agreement.
How do I find my cash advance limit on my Capital One credit card?
Your cash advance limit can be found on your most recent credit card statement or by checking your available credit details on the Capital One website or mobile app.
Can I use a Capital One credit card for cash advances at any ATM?
You can use any ATM to take a cash advance from your Capital One credit card, but keep in mind that fees may apply if the ATM is outside of Capital One’s network.
How can I take a cash advance from Capital One at a bank branch?
To take a cash advance at a bank branch, bring your Capital One credit card and a government-issued photo ID to the branch. Provide these to the teller and request the amount of cash you need.
What happens if I don’t pay back a cash advance quickly?
If you don’t pay off a cash advance quickly, the high APR will cause interest to accumulate rapidly. Additionally, there is no grace period for cash advances, meaning interest begins immediately.
Are there other ways to take a cash advance from a Capital One card?
Yes, you can also use convenience checks sent by Capital One or transfer funds directly to a bank account, if your card offers that option. Both methods will incur the same fees and interest rates as regular cash advances.
What are the disadvantages of taking a cash advance on my Capital One credit card?
The main disadvantages include high fees, higher APRs, immediate interest accrual, and a reduction in your credit utilization ratio. This can impact your credit score if not paid off quickly.
The Bottom Line
So, can you take cash out of a Capital One credit card? Yes, you can, but it comes with significant costs. Cash advances can be convenient in an emergency, but they come with high fees, high interest rates, and immediate interest accrual.
It’s essential to understand how the process works, the fees involved, and your cash advance limit before you proceed. If you do decide to take a cash advance, be sure to pay it off as quickly as possible to minimize the impact on your finances. As always, consider all your options before using your credit card to access cash.