HOW TO ACCESS CASH FAST DURING THE COVID-19 PANDEMIC: CASH ADVANCES ARE A PRICEY WAY TO GET CASH FAST: SURVEY
Credit card cash advances are much more expensive than typical credit card purchases, according to a recent CreditCards.com examination of 100 popular cards. The average cash advance APR is 24.80%. Most credit cards only offer one cash advance rate, irrespective of the cardholder’s credit score. Some offer a range depending on the customer’s creditworthiness. In that case, we averaged the high and the low. For regular purchases, most of those cards charge a range of interest rates that vary according to the cardholder’s credit profile. Using the same methodology of averaging the high and the low for each card, and then averaging the rates charged by all 100 cards, we ended up with 19.84%. That’s an apples-to-apples comparison to the 24.80% listed above for cash advances.
As more and more Americans face financial challenges as a result of the economic impact of COVID-19, many are looking for ways to get cash quickly. CreditCards.com industry analyst Ted Rossman breaks down the pros and cons of some likely ways to borrow.
CreditCards.com - Credit Industry Analyst TED ROSSMAN