Your Guide to Getting a Cash Advance from Your Navy Federal Credit Card

If you’re a Navy Federal Credit Union member with one of their credit cards, you might need quick cash at some point. This could be for travel expenses or urgent bills. Getting a cash advance from your Navy Federal credit card can help in such situations. But before you do, knowing how cash advances work and what fees you might face is important.

What is a cash advance?

A cash advance is the same as using a credit card to borrow money. Instead of buying something, you can get cash from an ATM or ask for cash back at certain stores. The amount you take out is added to what you owe on your credit card, but it usually comes with extra fees and a higher interest rate than regular purchases.

What are the pros and cons of getting a cash advance?

Getting a cash advance from your credit card can be a quick way to access cash, but it has advantages and disadvantages. Here are some pros and cons to consider:

Pros:

• Convenience: Cash advances can be helpful when you need cash immediately and have no other options.
• No Credit Check: Unlike applying for a loan, you typically don’t need a credit check to get a cash advance.
• Emergency Funds: Cash advances can help when you need cash for unplanned expenses.

Cons:

• High Fees: Cash advances often come with high fees, including an upfront fee and a higher interest rate than your regular purchases. Credit card companies normally charge a fee for cash loans. The fee is usually between 2% and 5% of the amount you take out, with a $10 minimum.
• No Grace Period: On the other hand, cash advances usually start charging interest immediately without a grace period.
• Impact on Credit Score: Getting a cash advance can hurt your credit score, especially if you use a lot of your credit limit.
• Risk of Debt: If you don’t pay back your cash advance quickly, the fees and interest rates are very high, and you may end up in more debt.

How do you get a cash advance from a a Navy Federal credit card?

If you need to get a cash advance using your Navy Federal credit card, here are the steps:

• Check Your Cash Advance Limit: Verify your cash advance limit before requesting a cash advance. This limit is typically lower than your overall credit limit and varies based on your creditworthiness.
• Locate an ATM: Find an ATM that accepts Navy Federal credit cards. The Navy Federal website or mobile app has an ATM locator that you can use to find qualified ATMs nearby.
• Insert Your Card: Insert your Navy Federal credit card into the ATM and enter your Personal Identification Number (PIN).
• Select Cash Advance: Choose the cash advance option from the ATM menu. If multiple accounts are linked to your card, you may also need to select the account from which you want to withdraw the cash.
• Enter the Amount: Type in the amount of cash you want to withdraw. Pay attention to any fees associated with the cash advance. These could be a flat fee or a portion of the amount taken out.
• Review and Confirm: Look over the transaction information, such as the amount and any fees that may be involved. Confirm the deal so it can go through.
• Collect Cash and Receipt: The ATM will dispense the cash, and you will receive a receipt summarizing the transaction. Keep this receipt for your records.
• Check Your Account: After completing the transaction, check your Navy Federal account online or through the mobile app to ensure the cash advance amount is reflected accurately.

Alternatively, you may be able to get a cash advance over the counter at a Navy Federal branch by presenting your credit card.

What is the Cash Advance Policy at Navy Federal?

It’s important to understand Navy Federal’s cash advance policy and fees before taking out an advance:

Cash Advance Limit

Navy Federal usually allows cash advances up to a certain percentage of your total credit limit, usually between 20% and 30%. This cap helps keep risks in check.

Cash Advance APR

Navy Federal’s cash advance APR rate, which is usually higher than the standard purchase APR rate, immediately adds interest to cash advances. For example, their cash advance APR could be around 24.99% vs. 16.99% for purchases.

Cash Advance Fee

In addition to interest, Navy Federal charges an upfront cash advance fee each time you take an advance. This is either a flat fee (e.g. $5) or a percentage of the advance amount (e.g. 3%), whichever is greater.

No Grace Period

Navy Federal does not have an interest-free grace period for cash advances, unlike for new purchases. With purchases, you might have 25 days to pay before interest starts, but cash advances immediately start accruing interest.

More Considerations about Cash Advances

While cash advances can be handy in a pinch, there are some other important things to consider:

• Impact on Your Credit Score: Cash advances are considered riskier than regular purchases, so they might have a slightly bigger negative effect on your credit score.
• Difficulty Paying Them Back: Since cash advances start charging interest right away at a higher rate with no grace period, they can be harder and costlier to pay off if you only make minimum payments.
• Risks of Taking Too Many: Taking out lots of cash advances could make lenders think you’re having money troubles. This could lead them to reduce your credit limits, increase your interest rates, or even close your accounts.
• Other Ways to Get Cash: In some cases, there are cheaper alternatives to cash advances, like getting a small loan, borrowing from family or friends, or using a line of credit.

Learn How to Get Cash Advance on Navy Federal Credit Card

Getting a cash advance from your Navy Federal credit card is pretty simple, but it’s crucial to understand the fees and rules involved. Only take out advances you can pay back quickly, as the high interest rate and fees can make them costly in the long run. If you rely on cash advances often, it might be worth looking into other ways to manage your debt.