Does Capital One have cash advance?

Answered by Edward Huber

Capital One does offer cash advances to its customers. A cash advance is a service provided by credit card issuers that allows cardholders to withdraw cash from an ATM or bank branch using their credit card. This can be useful in situations where cash is needed and other payment options are not available or convenient.

However, it’s important to note that cash advances often come with additional fees and higher interest rates compared to regular credit card purchases. These fees and rates are set by the credit card issuer, in this case, Capital One.

In the case of Capital One, the cash advance fee is either $10 or 3 percent of the amount of each cash advance, whichever is greater. This means that if you were to withdraw $100 in cash, you would be charged a fee of either $10 or 3 percent of $100, which is $3, whichever amount is greater. So in this example, the fee would be $10.

It’s worth mentioning that the cash advance fee is separate from the interest rate charged on the cash advance amount. Interest on cash advances usually starts accruing immediately, meaning there is no grace period like there is with regular credit card purchases. This can result in higher interest charges if the cash advance is not paid off quickly.

It’s also important to consider that cash advances can have an impact on your credit utilization ratio, which is the percentage of available credit you are using. Using a large portion of your available credit for a cash advance can negatively affect your credit score.

While cash advances can be a convenient option in certain situations, it’s important to carefully consider the fees, interest rates, and potential impact on your credit before deciding to take a cash advance. It may be worth exploring alternative options, such as using a debit card or obtaining a personal loan, which may have lower fees and interest rates.