How to get a cash advance with Capital One

Using a credit card for all your regular spending lets you avoid carrying cash in your wallet, and you’ll also get an itemized bill of your charges at the end of each billing period. Beyond the convenience credit cards offer, using a credit card can also help you earn rewards on your spending, and some cards offer consumer protections and benefits you just can’t get with other forms of payment.

But, did you know you can use a Capital One credit card to get cash out of an ATM? But before you do, make sure you understand the advantages and disadvantages involved in doing so.

In this guide, we’ll explain how to get a cash advance from a credit card from Capital One. We’ll also answer all your burning questions. For example, does Capital One charge for a cash advance? Also, which Capital One credit cards offer this option?

What is a cash advance?

A cash advance is a credit card transaction that lets you get cash in exchange for new credit card charges. This means you’ll use your credit card at an ATM just like you would with your debit card, but the cash you get out will show up as a charge on your credit card bill.

You may be wondering why you would take cash out on your credit card instead of using your card for whatever you need to buy. We all know there are situations where cash is still king, and using a credit card as payment may not make sense. For example, you may find your debit card isn’t working, but that you need cash right away to repay a friend. Or, maybe you want to make a purchase from an individual who doesn’t accept credit cards as payment (for example, you want to buy a piece of furniture from Facebook Marketplace or Craigslist).

Before you take out a Capital One credit card cash advance, keep in mind that it’s likely not the best idea due to the risks associated with it. For one, you’ll have to pay fees to access cash using your credit card at an ATM. Not only is there an upfront cash advance fee that you’ll have to pay no matter what, but the interest rate on cash advances is higher than the standard variable rate for purchases.

Additionally, a Capital One cash advance doesn’t come with a grace period. This means the cash you access with your credit card will begin accruing interest from day one. That makes a cash advance significantly more expensive than a credit card charge for purchases, which won’t begin accruing interest until a grace period of at least 21 days ends. An alternative to this option would be to take out a personal loan, which, on average, has an APR much lower than that of a cash advance and won’t start accruing interest immediately.

The fees and interest associated with a Capital One cash advance can easily add up quickly and may use a larger portion of your credit line than intended. This will raise your credit utilization ratio, especially if your credit limit isn’t very high, and ultimately can lower your overall credit score. If you have to take out a cash advance, try to contact your lender and see if they can raise your credit limit first.

How to get a cash advance with Capital One

To be eligible for a Capital One cash advance, you’ll need to have a Capital One credit card. From there, you’ll need to know if your credit card comes with a personal identification number, or PIN.

How to get a cash advance if your credit card has a PIN

If your Capital One credit card has its own PIN, you can use your card to get cash out of an ATM. All you have to do is insert your card in any ATM just like you would with a debit card. From there, you’ll enter your pin and follow the instructions to execute a cash advance.

According to Capital One, you’ll need to understand any fees the ATM might charge if you choose these options. And remember, ATM fees charged for a Capital One cash advance will need to be paid on top of the Capital One cash advance fee.

How to get a cash advance if your credit card doesn’t have a PIN

If your credit card doesn’t have a PIN, you can still use your Capital One credit card to take out a cash advance in a brick and mortar banking location that displays the Visa and Mastercard logos.

According to Capital One,  if you go this route, you’ll need to provide a government-issued photo ID (such as a driver’s license) along with your credit card.

Also, keep in mind that your credit card may also send out “convenience checks” that can work similarly to a cash advance. All you have to do to use a convenience check is make it out to yourself. From there, you’ll head to your bank and deposit the check or ask for cash.

Which Capital One cards offer cash advances?

All credit cards from Capital One let you take out cash, provided you have enough available credit on your card. However, Capital One credit card interest rates for cash advances can vary, so make sure you know your card’s cash advance APR ahead of time.

Is a cash advance right for you?

When it comes to getting a cash advance from your Capital One card, just because you can doesn’t mean you should. At the end of the day, there are advantages and disadvantages to consider before you use your credit card to get cash.

Due to the fact that cash advances require upfront fees, you should probably only use this option if you can’t get cash out with a cheaper option like your debit card. Also, keep in mind that if you can use your credit card to make a purchase directly instead of taking cash out you’ll get a grace period that lets you avoid interest accruing right away.

Pros and cons of cash advances

Like many financial transactions, taking out a cash advance comes with pros and cons:

Pros

• You’ll get cash when you need it, or when you can’t use a credit card.
• You can cover emergency cash expenses when money is tight or between paydays.

Cons

• Cash advances require an upfront fee, usually 3% to 5% of the amount of cash you take out.
• Credit card interest rates are higher on cash advances than purchases.
• There is no grace period, so interest begins accruing right away.
• It can increase credit utilization ratio and, in turn, lower your credit score.

Alternatives to cash advances

Because taking out a cash advance isn’t cheap, you may also want to consider some alternative ways to access cash when you need it. For example, you can consider a personal loan if you are able to wait a few days to access your cash. Many personal loans can be applied for online, and you’ll get a competitive fixed interest rate, a fixed monthly payment and fixed repayment timeline that will never charge.

You could also take out a 401k loan, provided you save for retirement in this type of employer-sponsored account. Another alternative is taking out money you have deposited in a Roth IRA account, which you can do without paying any taxes or fees, provided you are deducting contributions only.

Other alternatives like payday loans and car title loans exist, but you should steer clear of these options since they can be even more expensive (and problematic) than taking out a cash advance.

The bottom line

Your Capital One credit card comes with some important benefits, and it’s nice to know you could use it for a cash advance if you really needed to.

There are cheaper ways to get your hands on the cash you need, however, so avoid getting into a cycle of taking out one cash advance after another. Using your credit card to get cash from an ATM may be convenient, but it will cost you.

*All information about the Capital One Savor Cash Rewards Credit Card, Capital One Spark Miles Select for Business and Capital One Spark Classic for Business has been collected independently by CreditCards.com and has not been reviewed by the issuer. The Capital One Savor Credit Card, Capital One Spark Miles Select for Business and Capital One Spark Classic for Business are no longer available through CreditCards.com.