How Do You Convert Credit Card Into Cash?
Most people find credit cards useful to get instant cash in times of crisis or emergencies. However, there are plenty of drawbacks to credit card cash advances. It could get you drowning in debt if you fail to manage it properly.
Credit card cash advances are quite expensive. Its interest rates are higher than your regular credit card purchase. Banks may also charge you a fee for getting a cash advance.
Others Ways to Earn Cash With Credit Cards
Fortunately, there are other ways to get cash from your credit card without having to pay those expensive fees. Learn how to convert your credit card into cash without getting a cash advance using the methods below.
Technically, you cannot transfer funds directly from a regular credit card to your bank account. You will need to use a mobile wallet application to send cash from your credit card to your bank account. Add money to your digital wallet using your credit card. Then, transfer the funds to your bank account.
While not all types of credit cards allow you to transfer funds directly to your bank account, a certain type of credit card gives that privilege. These money transfer credit cards are suitable for those who have huge loans and unexpected bills to pay.
Find A Friend Who Uses Cash
This is probably the smartest thing that you can do. You can find a friend who needs to use cash to make a big purchase and offer to use your credit card instead. Your friend will then pay you in cash the money taken out from your credit card to pay for the item they purchased.
It’s the safest method to turn your credit card into cash. It doesn’t break any bank rules. You don’t need to worry about complicated terms and conditions. You only have to agree with your friend which can help you build up your friendship.
Purchase A Prepaid Gift Card
Here is another clever way to turn your credit card into cash. You can buy a prepaid card using your credit card and sell it for cash. Plenty of online marketplaces can help you to sell these prepaid gift cards. They can teach you how to catch people to purchase your gift card.
Some credit card providers offer reward points for using their services. You can accumulate these points and redeem them for gift cards. Who knows? You may even be lucky to get a gift card with a higher value than your reward.
Buy And Sell With Your Card
Perhaps you love shopping around for clothes and other stuff. Instead of binge-shopping for your thing-a-ma-bobs, how about becoming a reseller instead? You can use your credit card to purchase your inventory. Most merchants offer discounts on items purchased using credit cards. You need not worry about pricing your items too high for your buyers.
If you run a retail store, you can benefit from using credit cards to acquire your stocks. Besides getting the items at a lower price, you can also enjoy more rewards and freebies when you use your credit card regularly. You can also record your expenses easily with your credit card bill.
Get Instant Cash from a Balance Transfer and Refund
A balance transfer is a technique used by most credit card companies to attract new customers. You can move your outstanding balance from one credit card to a new one that offers a lower interest rate. Some credit card companies give you an introductory rate of zero interest when you signup to transfer your credit balance.
If you are savvy enough to understand the company’s policies, using your credit card can possibly earn you instant cash. There are instances when you can get a negative balance on your card due to refunds from the return of items purchased, waived fees and charges, and other statement credits. You can actually get the credit card company to pay you back this amount in cash.
Use Convenience Checks with Lower Fees
If you really need to get a cash advance, then use convenience checks that offer lower fees. These convenience checks are typically used to facilitate a balance transfer but you can also use them to get cash. Make sure to study the terms and conditions before you decide to use these checks.
Convenience checks are just an alternative way of receiving financial credit from your credit card. It may come with additional fees and may cause you more than your regular credit card. However, it is usually offered as a promotional tool that helps you to pay off your debts at lower interest rates.
Get a Cashback Credit Card
Most credit card companies offer cash back as a reward for purchases made using their services. But there is also a special type of credit that especially does this. They call it a cashback credit card.
You can get checks in the mail when you use your cash back credit card. You can find plenty of online merchants accepting this type of credit card. You can earn cashback rewards every time you make a purchase using your cashback credit card.
Shift Your Bills Around
Finally, get in the habit of using your credit card to pay your bills to free up your cash. It’s not only convenient. You can also earn more points for your credit card payments. You can redeem those points either for cash or extra credit.
You can try getting one credit card dedicated for bill payments. Most credit card issuers give an introductory offer of zero interest for new credit card applications. This buys you time to save up on cash before your bill starts accruing interest.
What To Watch Out For
Make sure to read the terms of your agreement when you signup for a credit card to avoid spending more on unnecessary fees and charges. Some credit card companies treat wire transfers the same as cash advances.
Use your credit card responsibly and always spend wisely. Remember that every credit card purchase is just like a loan from the bank. You still have to pay back the money that you owe.