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How to advance cash with American Express yellow card

American Express®’ Yellow Card is a popular choice due to its generous rewards and benefits. Of course, you’re paying for this generosity for a $250 annual fee. However, many cardholders think that the fee is reasonable. You can do many things with the Yellow Card, including receiving cash.

How to Make a Cash Advance With an American Express Gold Card
How to Make a Cash Advance With an American Express Gold Card

Cash advance fee

The American Express Cash Advance program allows cash card members to be charged to their Yellow Card accounts at ATMs participating in the program.

As is the case with most credit cards, the Yellow Card charges for each cash advance. Specifically, the card charges $10 or 5% of the amount of each cash advance, whichever is greater. The fee is charged on the date of the cash advance.

You may also be charged a separate fee if you advance cash from an ATM that is not part of the American Express network. Before you can use the Yellow Card to apply for an ATM, you’ll have to get a four-digit Personal Identification Number (PIN). American Express can automatically assign a PIN to you or you can request a PIN by contacting Amex at 1-800-227-4669.

Cash advances are loans.

A credit card cash advance is a loan calculated according to your credit line. This type of loan does not require separate applications or approvals. Rather, it’s a built-in feature of a credit card that offers cash advances.

The interest you pay on a cash advance is accrued from the trading day and continues until you refund the advance. The interest rate is expressed according to the Annual Percentage Rate (APR), the actual annual cost of the fund applied during the term of the cash advance.

The maximum size of the cash advance is usually determined by your current credit line and balance. For some credit cards, you can borrow up to the entire credit line minus your current balance. Other cards set a cash advance limit equal to a fraction of the overall credit limit.

The American Express Gold card is a charging card with no preset spending limit. However, the card has a maximum cash advance limit of $6,000.

Yellow card advance interest rate

The Yellow Card has a 25-day renewal period starting after the end of the payment period. Since the Yellow Card is a charged card, you must refund the entire balance before the expiration of the renewal period, otherwise you will be fined an APR of 29.99%. However, if you sign up for Payments from time to time, you can renew your payments over multiple payment terms. The APR for this feature ranges from 15.99% to 22.99% as of July 2021.

Cash advances on American Express Gold Cards have a high APR. Cash advances have no grace period. The interest you accrue from the cash advance is calculated daily starting from the trading day and is based on the current cash advance balance. In July 2021, the Yellow Card cash advance APR was 25.24%, corresponding to the daily interest rate of 0.06915%. Every day, Amex subtracts any new refunds in your cash advance balance and adds up the previous day’s interest for a new cash advance balance. This is compound interest – you are paying interest at the interest rate.

The Gold Card cash advance APR changes over time to reflect changes in the Main Exchange Rate, which is the rate at which banks pay to borrow from other banks.

Alternatives to cash advance

Cash advances typically charge APR of between 25% and 30%, which many consider to be high interest rates. For this reason, you may want to consider less expensive alternatives including personal loans, home loans, and auto refinancing. Naturally, the interest you pay on any loan depends on a number of factors, including credit score, income, and the use of collateral. However, when you need a loan right away, there’s nothing faster than a credit card cash advance.

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