Using a can earn you cash back on everyday purchases like gas and groceries. This is a straightforward way to ensure you're rewarded for purchases you already make.
Some credit cards also allow you to withdraw cash, but this method typically involves high fees and interest.
Certain credit cards offer special perks when you use them to make purchases. For instance, you might earn points you can use for travel or cash back. A cash-back credit card is a type of rewards credit card that lets you earn a percentage of cash back on your purchases.
Some cash-back rewards cards may offer flat-rate rewards back on every purchase, while others offer different cash-back rates in certain bonus categories. Here are some of the best cash-back credit cards available:
Enjoy 5% cash back on travel purchased through Chase Travelâ„ , 3% cash back on drugstore purchases and dining at restaurants (including takeout and eligible delivery service), and 1.5% on all other eligible purchases.
Earn 8% cash back on Capital One Entertainment purchases, 5% back on hotels and rental cars booked through Capital One Travel, 3% cash back on dining, entertainment, popular streaming services, and grocery stores (not including Target and Walmart) -- plus, earn 1% cash back on all other eligible spending.
Earn 3% cash back at U.S. supermarkets, on U.S. online retail purchases, and at U.S. gas stations (each up to $6,000 spent each year, then 1%) -- as well as 1% on every other eligible purchase. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or on Amazon.com at checkout.
Earn 6% cash back at U.S. supermarkets (on up to $6,000 in purchases annually, then earn 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back on transit and U.S. gas stations, including taxis/rideshare, parking, tolls, trains, buses, and more, and 1% cash back on all other eligible purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
Earn 5% cash back on everyday purchases at different places each quarter -- including grocery stores, restaurants, gas stations, and more -- up to the quarterly maximum and 1% unlimited cash back on all other eligible purchases.
Let's say you have a card that offers 2% unlimited cash back on purchases. If you spend $2,000 during a statement cycle, you'll earn $40 back. Generally, your rewards can be used for statement credits, but some card issuers may let you use them for other purposes, such as gift cards or merchandise. You might also be able to redeem cash back for a deposit into a bank account, such as a checking or savings account.
A cash-back credit card can be a smart alternative to a credit card that doesn't earn rewards. This is especially true if you use your credit card frequently.
A involves using a credit card to make a cash withdrawal at an ATM or bank. While this may sound convenient if you need funds to cover an unexpected cost, cash advances are typically expensive.
Fees for cash advances can vary across cards, but you'll often pay around 5% of the amount withdrawn. You'll also incur a higher interest rate on the amount withdrawn, typically up to 29.99%. Unlike regular purchases made with your card, interest charges on cash advances start accruing immediately after the transaction.
Depending on your credit card issuer and card type, there may also be limits on how much you can withdraw against your credit limit. For instance, cash advance withdrawals may be capped at 30% of the available credit on a particular card.
Generally, the drawbacks of cash advances outweigh the benefits. These transactions are very costly, so considering them usually only makes sense if you've exhausted all other options.
A convenience check is a type of cash advance, but instead of getting cash out of an ATM or from a bank teller, you get a paper check from your credit card company. You can then write this check out to a person or company, and once the check clears, the amount appears as a charge on your credit card statement.
As with other cash advances, you'll incur a hefty fee and a high APR if you use a convenience check. Fees are often 5% of the transaction amount, and APRs can be as high as 29.99%.
While a convenience check can seem like a useful way to get cash when you need it, its high costs often aren't worth it. Other alternatives could be much cheaper, such as taking out a personal loan, requesting a paycheck advance, or borrowing money from a friend or family member.
Cash advances on your credit cards could be helpful in a financial emergency, but there are a few alternatives to consider first. Here are some options if you need cash in a pinch and want to avoid high fees and APRs.
Getting cash back with a credit card is possible, but depending on the method you choose, it could be expensive. Cash-back cards are a more favorable option for offsetting your costs since you can earn a percentage back on all your eligible purchases.
If you need cash quickly, consider exploring less expensive alternatives to a cash advance, such as a paycheck advance, BNPL platform, or a low-interest loan from a loved one or financial institution.
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Yes, many credit card companies allow you to withdraw cash from an ATM or bank by taking out a cash advance. However, cash advances often charge high fees and interest can start accruing immediately.
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If your credit card requires a PIN to get a cash advance from an ATM and you don't have one or forgot it, consider going into a bank to withdraw cash. You will need your credit card and a government-issued photo ID. You can also contact your card issuer to set up a PIN or request a new one.
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Most credit card issuers don't allow cardholders to receive cash back when completing a purchase at a grocery store, as this feature is typically reserved for debit cards. However, Discover cards have the option to receive up to $120 every 24 hours when checking out at applicable stores, including Albertson's, Aldi, Smith's, and Trader Joe's.
You often have to pay a cash advance fee of around 5% to take out a cash advance with a credit card. You might also have to pay ATM fees if you're using an ATM. In addition, cash advances tend to have higher interest rates than purchases, and there's typically no grace period for interest to start accruing.
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The easiest way to get cash back on credit card purchases is to use a to pay for expenses. Depending on the credit card you use and its rewards program, you can earn cash back, points, or miles on eligible purchases.