How to make money on credit cards

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Credit card companies make money by collecting fees. Out of the various fees, interest charges are the primary source of revenue. When credit card users fail to pay off their bill at the end of the month, the bank is allowed to charge interest on the borrowed amount. Other fees, such as annual fees and late fees, also contribute, though to a lesser extent. Another major source of income for credit card companies are fees collected from merchants who accept card payments.

Through the fees they get to collect, banks make a profit on their credit card business.

Income from Credit Card Interest and Merchant Fees

The primary way that banks make money is interest from credit card accounts. When a cardholder fails to repay their entire balance in a given month, interest fees are charged to the account. For any given account, the interest charged is equal to the card’s periodic rate multiplied by the average daily balance and number of days in a billing period. The periodic rate is the annual percentage rate (APR) divided by 365. In the United States, the average credit card interest rate paid by interest-bearing accounts is 19.33%.

The second largest source of income for credit card companies are fees collected from merchants. When a retailer accepts a credit card payment, a percentage of the sale goes to the card’s issuing bank. This is commonly referred to as the interchange rate, which will vary from card to card and retailer to retailer.

The table below shows the year-to-date credit card income for five banks. This information is self-reported by banks from 2019 annual report data.

When looking at income, consider a bank’s expenses. For example, when credit card issuers offer loans, some consumers never pay them back. These are commonly referred to as “interest expenses.” However, these expenses are just a fraction of the interest income. Here is an industry-wide overview:

Finally, banks also take in other forms of non-interest income. While a large portion of it is made up of the aforementioned interchange fees, the rest comes from annual, late, cash advance and balance transfer fees. These also have other types of overhead expenses associated with them.

When both net interest and net non-interest incomes are considered together, credit card companies make a sizable profit. In 2016, these income sources accounted for a positive 4.04% of their average quarterly assets.

How Much Do Credit Card Companies Make Per User?

According to data from 2017, each active account makes $180 on average for credit card companies per year. Again, credit card companies make money primarily from the interest accrued and the interchange fees per account.

How Do Credit Card Networks Make Money?

Visa, Mastercard and American Express earn money from assessment fees, which are assessed for processing a merchant’s credit card transactions. These are different from the interchange fees previously mentioned. The card network—the company, which has the logo on the bottom right corner of a card—collects a far smaller fee with each transaction known as the assessment fee. The fee is 0.14% of each credit card transaction through Visa, and 0.1375% for Mastercard transactions.

Sources:

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How We Calculate Rewards: ValuePenguin calculates the value of rewards by estimating the dollar value of any points, miles or bonuses earned using the card less any associated annual fees. These estimates here are ValuePenguin’s alone, not those of the card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer.

Example of how we calculate the rewards rates: When redeemed for travel through Ultimate Rewards, Chase Sapphire Preferred points are worth $0.0125 each. The card awards 2 points on travel and dining and 1 point on everything else. Therefore, we say the card has a 2.5% rewards rate on dining and travel (2 x $0.0125) and a 1.25% rewards rate on everything else (1 x $0.0125).

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How Do Credit Card Companies Make Money?

How to make money on credit cards

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Credit card companies make the bulk of their money from three things: interest, fees charged to cardholders, and transaction fees paid by businesses that accept credit cards.

Use credit cards wisely, and you can minimize the amount of money that credit card companies make off of you.

How credit card companies work

The broad term “credit card companies” includes two kinds of enterprises: issuers and networks.

Issuers are banks and credit unions that issue credit cards, such as Chase, Citi, Synchrony or PenFed Credit Union. When you use a credit card, you’re borrowing money from the issuer. Retail credit cards that bear the name of a store, gas company or other merchant are typically issued by a bank under contract with that retailer. Hence these are often referred to as “co-branded” credit cards.

Networks are companies that process credit card transactions. The major networks in the U.S. are Visa, Mastercard, American Express and Discover. American Express and Discover are both networks and issuers.

When you use a credit card, money moves electronically through many hands, from the issuer, through the network, to the merchant’s bank. The network also makes sure that the transaction is attributed to the proper cardholder — you — so that your issuer can bill you.

Where the money comes from

You are a key ingredient in a credit card company’s moneymaking recipe, as are the merchants where you use your cards.

Interest

The majority of revenue for mass-market credit card issuers comes from interest payments , according to the Consumer Financial Protection Bureau. However, interest is avoidable. Issuers typically charge interest only when you carry a balance from month to month. Pay your balance in full, and you’ll pay no interest.

Subprime issuers — those that specialize in people with bad credit — typically earn more money from fees than interest. Mass-market issuers charge plenty of fees, too, although many of them are avoidable. Major fees include:

Annual fees. Annual fees are typical on cards with high rewards rates, as well as cards for people with less-than-good credit.

Cash advance fees. Issuers charge these fees when customers use their credit card to get cash at an ATM. The fees range from 2% to 5% of the amount of cash taken out, often with a minimum dollar amount, such as $5.

Balance transfer fees. When you transfer debt from one credit card to another to get a lower interest rate, you’ll usually be charged a fee of 3% to 5% of the amount transferred. Some cards don’t charge these fees , or waive them for a certain period of time.

Late fees. Failing to pay the minimum amount by the due date will usually result in a late fee. Some cards waive the first late fee or don’t charge these fees at all. (Your credit scores, however, can still suffer if you pay late.)

Interchange

Every time you use a credit card, the merchant pays a processing fee equal to a percentage of the transaction. The portion of that fee sent to the issuer via the payment network is called “interchange,” and is usually about 1% to 3% of the transaction. These fees are set by payment networks and vary based on the volume and value of transactions.

Savvy customers cut their costs

Without cardholders like you, credit card companies don’t make money — but you can limit the amount they make from you. Avoid extra costs by:

Paying your balance in full every month to avoid interest charges.

Setting up electronic alerts that notify you when payments are due, so you avoid late fees.

Setting aside money in an emergency fund to avoid costly options like cash advances.

Choosing a credit card without balance transfer fees.

Paying an annual fee only if the rewards you’ll get from the card will exceed the cost. Remember that rewards and sign-up bonuses can put money in your pocket, but card fees and interest can eat right through it.

What’s next?

About the author: Melissa Lambarena is a credit cards writer at NerdWallet. Her work has been featured by The Associated Press, New York Times, Washington Post and USA Today. Read more

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How to make money on credit cards

How to make money on credit cards

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How to make money on credit cards

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It almost seems to be too good to be true. You can make money using your credit card!

Earn money using a credit card

Warning

A word of caution before I go any farther: Many people get in trouble using credit cards. They don’t understand the impact of interest or the long term effect of what could turn into another monthly bill on their disposable income. If you choose to use this strategy, it is important imperative you use it correctly or you will find yourself losing—instead of making—money. The point in this is to make money using your rewards credit card.

How to make money with your credit card

To implement this plan you will need a credit card that pays points. Most credit cards paying reward points do so by refunding between 1% & 2% of qualified purchases. Mine pays 1.5% on all transactions. In order to get terms best suited to your circumstances, it’s a good idea to do some research before applying for any credit card: Not all credit cards are created equal.

Note: If you already have a credit card that you want to use to make money, it’s important that you owe nothing on it. You do not want the card you use for this plan to carry a balance due. The interest you will pay for carrying a balance will be greater than any money you would earn.

Essentially, this plan employs a cash-in-hand policy. You are going to use your credit card to charge items for which you already have the funds and could pay for at the time of purchase. Then, you will pay off those purchases—before interest charges have time to accrue, but with the reward points (this means money) already accredited to you.

Planning and discipline are the keys to making this work.

Planning and discipline are the keys to making this work. Plan your purchases in advance: Know exactly what you are going to charge and how much you are going to spend. Discipline is required to avoid charging items for which you do not have ready funds. Don’t cheat yourself: Make your purchases as if you were going to pay with cash from your pocket.

Go shopping. Or, pay bills. Keep in mind that these are to be planned transactions. You are going to charge no more than an amount equivalent to what you would be able and willing to pay out of your available cash. That given, use your credit card for everything you can. Then, when you get home (or more practically, once a week) pay it off. Yes, it is that simple.

I use my card to pay for fuel, groceries, entertainment, some recurring bills, etc. Now, look at the numbers: I make about $500-worth of charges a week; that’s $26,000 a year. My credit card pays me 1.5%. So, in a year’s time I make about $390. That’s considerably more than half a week’s regular expenses, and I think that’s pretty sweet.

I’ve said some research needs to be done to find the card with terms best suited for you. I picked my card for that reason. Mine works for me. But, there is one provision I keep in mind: I can’t make a payment if I have a payment pending; it takes about 2 days for my payments to post. That means I schedule the use of my credit card. I plan my spending campaign from Saturday morning thru Friday. I make it a point to pay off my weekly charges every Friday evening. By doing this there will be no pending payment transactions when I pay again on the following Friday.

You can earn money using your rewards credit card

The above is just an issue I deal with. Everyone needs to know and be comfortable with the terms of their own card. There are other issues. For example: What is the dollar limit on charges? And, how do pending payments (payments made, but not yet posted) affect your prerogative to make transactions? I think the almost universal question would be: When and how do I get paid? You can probably guess the answer: It varies from company to company. So, research will give you your answer. Some of the payment procedures I’ve come across are automatic credit to the card when a certain dollar amount is reached, automatic credit to the card on a weekly/monthly/quarterly basis, a check to the cardholder, a “savings” account with funds to be issued at the cardholder’s request… I’m sure there are others. The point is to find a card that works for you.

I feel the need to emphasize (again) that all charges I make on my credit card are planned and could be cash or debit transactions. I will not carry a negative balance on this card. The companies issuing these reward points cards are banking on the cardholder carrying a balance. If you do carry a balance, the interest rate they charge will, certainly, be much higher than the 1% to 2% reward points they pay. By paying off your balance—weekly—you win on two levels: You don’t pay to use someone else’s money: You get paid for using your own.

Start Earning Immediately

Earning money from your good credit is very easy and safe with our program. You have spent all this time building up a good credit rating now is the time to sit back and collect money because of your good credit. This program is 100% risk free and is free to join!

How We Work – We basically are a financial matchmaker. There are thousands of people each and every month looking for ways to improve their credit scores. The fastest way to improve a score is to add them as an authorized user on a credit card that has a very good history. This tactic is called “piggybacking”. As a good credit card holder we match you up with the people looking to improve their credit.

Why we offer it – When you add someone as an authorized user to your credit card they get the score benefits of that account including all the benefits that go with the age, limit, balance, and payment history. The best part however, is that the user NEVER gets any of your information not do they ever get access to your credit card. This extremely high level of safety allows everyone with good credit to get involved at no risk.

How You Earn Extra Money – If you qualify and join our program you will get monthly payments based on the number of people you add to your credit card(s) The more people added the more you make. The amount you earn varies based on each specific card.

100% Risk Free For Cardholder’s

  • This program is 100% risk free
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  • The user’s credit report will not show enough details to put any of your information at risk
  • Call us today to see how much you can earn with your credit card

Learn How To Earn Extra Money Using Your Good Credit History

Credit cards have become synonymous with debt. However, if you can swipe credit cards responsibly, then you can not only avoid getting into debt but also make some money.

Are you wondering if you have read the last line with proper attention? Well, it is true. If you can use credit cards responsibly, then you can make some extra money. Here are some tips and tricks to make money with credit cards.

  1. Credit card bonus: Have you heard about rewards credit cards? If you are an American, you must have heard about them. Well, several rewards cards give sign-up bonuses to consumers when they open a new card and meet specific criteria. Research and find out the cashback credit cards that offer money in the form of cashback or miles or points when you make purchases worth $500 to $1000 in the initial few months.

*Many credit cards offer long-term benefits to consumers.

You can get a bonus for making purchases. You may earn points or miles rebates whenever you redeem rewards. Other than that, based on your credit card usage, you may also get an annual reward bonus.

  1. Earn bonus rewards for every transaction: Apart from the credit card bonus, there are many other things you can enjoy. For example, you can earn rewards for the everyday purchases you make with reward credit cards. The more purchases you make, the more rewards you will earn. That is the beauty of rewards credit cards. Some rewards credit cards even give bonus rewards on specific categories like restaurants, groceries, and gas.

Evaluate your spending habits before you choose a rewards credit card. Try to select a card that gives you the maximum rewards based on your household budget. If you are a responsible consumer, then you can even use multiple credit cards to earn lucrative rewards.

  1. Earn rewards for your online purchases: Do you know that you can make money while making online purchases? When you use credit cards to shop online, you can get flat discounts on your purchases. That comes with specific terms and conditions. For example, you may qualify for discounts only when you shop online up to a certain limit. Apart from that, you can earn rewards for your purchases.

A few cashback websites give rewards when consumers shop at specific retailers. Browse the cashback website and look for your favorite retailer. Go to the retailer’s online shopping portal and add items to your cart. Once your cart is full, you can press the ‘buy’ button, and then pay the specified amount with your credit cards. Once you are done with your online shopping, you will get rewards from the cashback websites based on the total amount you have spent. Cashback websites use cookies to monitor your purchases. So, they will reward you accordingly.

Explore the websites that help you to make a comparative analysis of all the shopping portals to make sure you are getting the best rewards for your online purchases.

  1. Hold on to your cash with balance transfer credit cards: What is the best way to get out of credit card debt? Is it a debt settlement program or a debt snowball method or a debt avalanche method or a debt management program, or bankruptcy? Well, each debt relief option has its pros and cons. But all of them do help you to get out of credit card debt.

Balance transfer credit cards help you to pay off credit card debts while holding on to your money. These cards allow you to save money on your debts. As such, you can utilize that money to give a much-needed boost to your financial life.

Balance transfer cards come with an O% APR for a fixed period. That introductory period typically lasts between six and twenty months. Let us first understand how balance transfer credit cards help you to save money.

Here you apply for a balance transfer credit card online. Once you meet the eligibility criteria and get the credit card, you can transfer your outstanding balance on another high-interest card into this one. What you have to do is, pay off the outstanding balance of the high-interest card with the balance transfer card. You have to pay a balance transfer fee on the total amount transferred. The balance transfer fee usually varies between 3% and 5%.

After paying off all your debts, now you are left with a single balance transfer credit card. The interest rate on this card is 0% for six to twenty months. So, you have to pay the entire balance within the introductory period. That means you will save the total interest. You do not have to pay a single penny for it.

Do not worry about the balance transfer fee. That is negligible in comparison to the amount you will save on the interest rate. Your savings will be far more than the overall cost of the balance transfer credit card. Moreover, some balance transfer credit cards do not have any fees also.

A word of wisdom

While rewards cards help you to make money, there are a few things that you should know. For example, the annual fee on your credit card. How much do you have to pay for the annual fee? Is it a lot of money? Is it almost the same amount that you will gain through rewards? Or is it far less than what you will get as rewards? Calculate every dollar you will gain and lose before making the final decision.

Analyze the credit card’s rewards programs and the associated perks. That will help you to understand if the cards are worth it. For example, in the case of mileage rewards cards, you may qualify for various perks such as in-flight discounts and free checked bags. So, that may help to combat the cost of the annual fee.

Cashback credit cards help you to get money back in your wallet. That is the best part of cashback credit cards. Check out the best cards available in your area to save and make money.

Author bio: Stacy B Miller is a writer, blogger, and content marketing enthusiast. Her blog vents out her opinions on debt, money, and financial issues. Her articles have been published on various top-notch websites and she plans to write many more for her readers. You can connect with her on Facebook and Twitter.

This post may or may not contain affliate links. By clicking one of them, we may be compensated.

by Lyle Daly | June 6, 2021

Many or all of the products here are from our partners. We may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.

How to make money on credit cards

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You don’t need to get stuck paying credit card fees. Follow these tips to be fee-free.

Look through the terms on most credit cards, and you’ll see quite a few fees the card issuer can charge. These sometimes scare off consumers, especially those who don’t want to end up paying extra just to carry a credit card.

The good news is that for every credit card fee, there’s a way to avoid it. If you’ve been charged any credit card fees in the past, or you just want to make sure it doesn’t happen to you in the future, here’s what you can do.

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1. Use autopay

If you miss a credit card payment, even just by a day, the card issuer could charge a late fee. It can also hurt your credit score if you go 30 days or more without making the payment. Most credit card companies will waive your first late fee if you call and ask. But you only get one of these mulligans.

The simplest way to prevent this issue is to set up automatic payments. That way, there’s no risk of forgetting.

2. Make sure your bank account has enough to cover your credit card payment

There’s one way your payment could go awry even with autopay. If your credit card bill is more than what you have in your bank account, then the payment may be rejected. Your card issuer could then charge you a returned payment fee. To make it even worse, your bank may charge a checking account fee for not having enough money in your account.

Keep an eye on your credit card and bank account balances, especially when your payment is due soon, so this doesn’t happen to you.

3. Have at least one card with no foreign transaction fees

Many credit cards have foreign transaction fees, with the standard amount being 3%. These apply to any purchases that go through foreign banks and that are made in currencies other than U.S. dollars.

The most common situation when you’d incur foreign transaction fees is international travel. But you can even incur foreign transaction fees while shopping online. That can happen if you shop at home using merchants based outside the United States.

It’s recommended to have at least one credit card with no foreign transaction fees. There are plenty available, and travel rewards cards are a good place to start.

4. Set your cash advance limit as low as possible

A credit card cash advance is when you use your card to get cash. This doesn’t just apply to using your card with an ATM. Any type of transaction that involves sending money, such as a money wire, could also be considered a cash advance. Not only do these have fees and often a higher APR, but your card issuer can start charging you interest right away.

I like to be extra careful to avoid cash advances, so I contact the card issuer and ask them to set my cash advance limit to the minimum. Depending on the card issuer, this is usually anywhere from $0 to $100. If a transaction’s going to be considered a cash advance and it’s more than that limit, it won’t go through.

5. Downgrade, cancel, or negotiate credit cards with annual fees

Credit cards with annual fees can be worth it. But if your card’s annual fee is coming up and you don’t want to pay it, there are a couple options to avoid it:

  • Downgrade the credit card to one without an annual fee in the card issuer’s lineup. This allows you to keep the account open without paying an annual fee anymore.
  • Cancel the credit card. Just make sure you know how to close a card without hurting your credit score.
  • Contact the card issuer to see if they’re willing to waive the annual fee for a year. Credit card companies sometimes do this as a retention offer to keep you from canceling your card.

6. Don’t opt into over-the-limit fees

Your card’s credit limit is the maximum amount you can spend. If a transaction pushes the balance above that limit, it will be denied.

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About the Author

How to make money on credit cards

Lyle is a writer specializing in credit cards, travel rewards programs, and banking. His work has also appeared on MSN Money, USA Today, and Yahoo! Finance.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.

Many or all of the products here are from our partners. We may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.

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Start Earning Immediately

Earning money from your good credit is very easy and safe with our program. You have spent all this time building up a good credit rating now is the time to sit back and collect money because of your good credit. This program is 100% risk free and is free to join!

How We Work – We basically are a financial matchmaker. There are thousands of people each and every month looking for ways to improve their credit scores. The fastest way to improve a score is to add them as an authorized user on a credit card that has a very good history. This tactic is called “piggybacking”. As a good credit card holder we match you up with the people looking to improve their credit.

Why we offer it – When you add someone as an authorized user to your credit card they get the score benefits of that account including all the benefits that go with the age, limit, balance, and payment history. The best part however, is that the user NEVER gets any of your information not do they ever get access to your credit card. This extremely high level of safety allows everyone with good credit to get involved at no risk.

How You Earn Extra Money – If you qualify and join our program you will get monthly payments based on the number of people you add to your credit card(s) The more people added the more you make. The amount you earn varies based on each specific card.

100% Risk Free For Cardholder’s

  • This program is 100% risk free
  • your identity and credit card information is kept completely confidential
  • The authorized user will never see your account information or have the ability to call your card company to make changes
  • The user’s credit report will not show enough details to put any of your information at risk
  • Call us today to see how much you can earn with your credit card

Learn How To Earn Extra Money Using Your Good Credit History

How to make money on credit cards

In this article:

  • Can You Transfer Money From a Credit Card to a Checking Account?
  • Is It a Good Idea to Transfer Money From a Credit Card?
  • How Transferring Money From a Credit Card Can Affect Your Score
  • The Bottom Line

If you’re in a bind and need cash now, you’ve got options thanks to the availability of personal loans, credit cards and other methods for stabilizing your finances. One solution is to transfer money from a credit card to your bank account—a cash advance.

A cash advance lets you borrow money directly from your credit card rather than using your account for purchases. Some financial institutions allow you to directly transfer a cash advance to a checking account, while others require an extra step. Either way, due to hefty fees and steep interest rates that kick in right away, cash advances should only be used for emergencies.

Can You Transfer Money From a Credit Card to a Checking Account?

If you have a financial emergency and choose to take cash out via your credit card account, the way you’d do this is through a cash advance. This is a loan you must repay and that can’t exceed the current balance available on your credit card. Be aware that interest starts accruing on the cash withdrawal as soon as you take it out. There’s no grace period like there is with a typical credit card purchase, so if you need the money for something that you could just pay for with your card, it’s better to that.

But if you need cash, the process for getting your money depends on your credit card issuer, so you’ll need to find out what they offer. Here are a few ways you can typically get cash advance money into your bank account:

  • Direct transfer: Some financial institutions allow you to directly transfer funds from your credit card to your checking account. U.S. Bank, for example, lets you complete this process entirely online. However, many issuers don’t have this option. While this method is convenient, it might also make it a little too easy to take on more debt.
  • ATM: Many banks and credit unions allow you to take out money for a credit card cash advance via an ATM; you just need to make sure your credit card has a PIN. If you need this money to go into your checking account, you can then deposit your cash into your account (either at an ATM that accepts deposits, or at a branch).
  • In person: You may be able to take out a cash advance out in person at a branch. If you go this route, you could then deposit the cash into your checking account.
  • Convenience checks: These are checks your credit card issuer sends you that you can deposit in your bank account or use to pay for something like you would with a personal check. They function much like traditional checks, except the money comes from your credit card’s line of credit rather than your checking account.

Is It a Good Idea to Transfer Money From a Credit Card?

The short answer is no, it’s not a good idea to transfer money from a credit card to your bank account. It’s always a better option to use income or savings when possible to avoid going into debt. If it’s an unavoidable emergency and you must take on debt, consider other options that carry lower interest first. This could mean a low interest personal loan, home equity line of credit or a new credit card with a 0% interest introductory offer. Or you could even try to borrow the money from a friend or family member.

They might not be as bad as payday loans, but cash advances should never be the first option you consider for fast cash. For one, the interest rate on a cash advance is typically very high, so if it will take you some time to repay it, you’ll pay a pretty penny in fees for this privilege. The interest rate on a cash advance is typically higher than the purchase APR on a credit card. But with a credit card purchase, you’ll at least have a grace period of no interest for a few weeks, so a purchase will carry no interest if it is paid off fast enough. Cash advances have no grace period, so the interest starts accruing as soon as you take the cash out.

Then there are the fees. Most credit cards carry a cash advance fee, which will be either a small flat fee or percentage of the advance amount, with the majority of card issuers charging a 5% fee for every cash advance. If you’re taking out large amounts, that can add up fast.

Only take out a cash advance if you absolutely need the money in an emergency and don’t have more cost-effective options. It’s not wise to rely on them whenever you need money. You should also aim to only take out a cash advance if you can pay it back very quickly and minimize the amount of interest you pay. If your financial institution has online bill pay, this makes it easy for you to quickly start repaying what you’ve borrowed.

How Transferring Money From a Credit Card Can Affect Your Score

Keep in mind that using a cash advance to access money can have a negative impact on your credit. The amount of credit card debt you have relative to your total credit limit is called your credit utilization ratio, a factor that represents 30% of your credit score (it’s the second-most important factor).

To find your credit utilization ratio, divide how much you owe on all your cards by your total credit limit. Using a significant amount of your available credit can be a red flag to lenders and creditors. Because of this, it’s considered ideal to keep your ratio under 30%. Say your credit card’s credit limit is $10,000 and you have a credit card balance of $4,000. Taking out a cash advance of $2,000 would cause your credit utilization ratio to jump to 60%. A ratio this high can start to negatively affect your credit score.

The Bottom Line

Fast cash is tempting, and credit card issuers offer many different ways to easily get a cash advance, including the ability to directly transfer money from a credit card to your bank account. But it comes at a price, with high interest rates, steep fees and the potential to cause dings to your credit score, a cash advance is rarely your best option. If your current credit card’s cash advance terms are really bad, consider finding a different credit card with lower cash advance fees or interest rates.