Financial emergencies happen to everyone — and, usually, at the worst possible time. When your car breaks down and it’s still five days until payday, a cash advance may seem like a good idea because of its convenience. But you should avoid credit card cash advances, because of their fees and high interest rates. Instead, we recommend using a card with a long 0% intro APR, so you can pay off large purchases over time without paying interest. Or you can take out a personal loan as a lower-cost option with more flexible terms.
Before you decide what’s right for you, read on to learn about exactly how cash advances work, their true cost and alternative options for a cash advance.