04 Mar2025

Some Filipino travelers might think that they have no use for a credit card when venturing into cash-based countries. However, if your credit card has a cash advance feature, you should consider it a necessity since it could give you a valuable safety net in your international travels.

A cash advance (sometimes called a “cash loan” by some providers) is a credit card feature that lets the cardholder withdraw physical cash from ATMs supported by their card network. In most cases, the maximum limit that could be advanced is a proportion of the cardholder’s credit limit. Upfront fees are also typically charged for cash advances, and these can be flat fees or a proportion of the amount withdrawn. Importantly, unlike many other loan types, there are no waiting periods or credit reviews needed to access the money.

As you might have guessed, cash advances can be an easy way to access foreign currency when you’re overseas. However, cash advances can be quite expensive, as your card provider must take a risk to lend you the cash with no questions asked. These loans are not assessed in the same way as normal credit card purchases either, and they can have a serious impact on your credit if they’re not paid off in time.

Regardless, a card that lets you do cash advances can give you peace of mind on your overseas travels. If you have one, it’s time you learn how to cash advance in credit card safely. Here’s a detailed guide to help you use this opportunity responsibly with a card like the Landers Cashback Everywhere Credit Card by Maya:

 

1. Pick a Credit Card with Global Network Coverage

Not all credit cards allow cash advances in every country, and some cards may not work with specific local ATMs. Others might work, but add a steep out-of-network fee to facilitate the transaction.

For that reason, you want to stick with cards supported by Visa or MasterCard, since these networks have the widest global reach. This should ensure that more of the ATMs you encounter can support your credit card’s cash advance.

 

 

2. Explore All Your Available Cash Options

Before opting for a cash advance, explore other options that may offer lower costs and better terms. If you have a debit card or a physical e-wallet card, you might be able to use those to withdraw cash from a suitable overseas ATM for a lower fee.

Also, it won’t hurt to ask if your credit card will be accepted, given that credit card acceptance continues to increase globally. If your need for cash isn’t immediate, you can also consider personal loans or salary advances to help tide you over.

 

3. Don’t Use Cash Advances for Trivial Situations

Cash advances should be treated as a last resort, reserved for situations where no other cash source is available. For example, if you have to pay for medication at a cash-only pharmacy or find yourself in a setting where electronic payment methods aren’t accepted, a cash advance could be invaluable. In contrast, using a cash advance for non-essential purchases like shopping for souvenirs is unwise, given the high costs associated with these loans.

 

4. Don’t Borrow More Than You Need

If you must take out a cash advance, withdraw the minimum amount required to cover your emergency. This is especially important if your credit card’s cash advance fee is a percentage of the loan amount since bigger loans mean higher fees. Even if your card charges a flat rate, keeping your withdrawal to a minimum is still prudent since it will keep you from overloading your finances later on.

 

5. Pay Back the Advance Quickly

Cash advances are among the most expensive mainstream loans out there. Once you take out a cash advance, you must make it a priority to repay the full amount as soon as possible. If that’s not feasible, aim to pay more than the minimum due so that you can chip away at the principal and reduce the interest you have to pay.

 

6. Avoid Using Rewards Cards for Cash Advances

If you rely on credit cards for cashback or travel points, you might be disappointed to learn that cash advances typically don’t qualify for these rewards. If anything, the cost of a cash advance could wipe out the value of your rewards. So if credit card rewards are a key part of your financial planning, consider other payment options before turning to a cash advance.

 

 

A Card with Options Is Your Best Travel Companion

Even as credit cards continue to gain acceptance the world over, you’re undoubtedly going to come across a handful of situations where only physical cash will do. In these moments, a card with a cash advance feature can ensure you’re never caught unprepared. Just remember that whether you’re traveling overseas or living your best life at home, cash advances are meant to serve as a safety net, not a daily convenience.

Still, you would not want to leave home without a card that offers cash advances. Travel smart, explore your options, and enjoy peace of mind knowing you’re prepared for the unexpected.

 

TIP: Going on a trip and not sure what to pack? Check my ultimate guide to packing.

 

Posted in tips, travel Tags: cash, traveling

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