Ways to Do a Cash Advance Without Paying High Interest on a Credit Card

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A cash advance from your credit card can get you out of a pinch, but you pay a high price for the privilege. Most credit card companies charge a transaction fee equal to a percentage of the advanced funds, plus an interest rate that's higher than the rate for purchases. Also, unlike charges for purchases, you have no grace period. Consider juggling your finances to get the cash you need without the high interest rate.

Charge Routine Expenses

Free up cash by charging items for which you'd usually pay with cash or a debit card. Putting such expenses as groceries, utility bills and small purchases you make throughout the day on your card and pocketing the cash acts as sort of a reverse cash advance. You'll still pay interest on the charges if you don't pay off the balance during the grade period, but at the lower purchase rate. You’ll also avoid the transaction fee.

Transfer Balances

If you have more than one credit card, you may be able to take the advance from one, and then quickly transfer the account balance to another card. Many credit card companies charge low or no interest on balance transfers, so all you're out is the cash-advance transaction fee, which usually costs 2 to 3 percent of the advanced amount. Be sure to pay off the transferred balance before the grace period ends.