In the past here, we’ve generally recommended against using a credit card for cash advances. It’s for good reason — a combination of a cash advance fee and being hit with what is usually the highest interest rate on a card, with no interest free days. There are exceptions to every rule however, and that’s what we’ll cover here. When might a cash advance not be such a bad idea?

Here are three situations when it might be worth taking out that cash advance:
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Cash advances don’t come cheap. They’re often subject to a higher interest rate than purchases on your credit cards. With interest rates often nearing or exceeding 20%, you probably don’t hit an ATM all that frequently with your credit card.

The interest rate charged for the cash advance is pretty obviously a drawback. Did you know that you can find yourself stuck with more interest in another way too, just by taking out a cash advance? You can. read more..

You’re likely familiar with credit card interest rates. You know that interest rates determine how much you’re charged (in addition to fees) for the privilege of using your credit cards. You probably also know that balance transfer rates can be different than your normal purchase interest rates, and that they can help you save on interest when you transfer your balance to a new card. But do you remember to look at cash advance interest rates when comparing credit cards? You should! read more..

Your credit card may make payments convenient online, over the phone, or at your favourite retailer, but what about using that credit line when you need cash? Maybe you’re travelling, and you want to purchase some local trinkets for friends and family back home from a small cash-only shop. Perhaps a store’s credit card machine goes down, forcing them to only accept cash for a short period. Maybe you want to use that balance to give cash gifts around the holidays, or you want to give the kids cash to spend while on a family trip. No fear–you can use your credit card at an ATM to receive cash, just as you would use a debit card. But is it a good idea? read more..