Cash Advances That Work With Chime

Find out if there are cash advances that work with Chime through zaving.

Last updated by Zaving Editorial Team, on May 13th, 2024

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What are cash advances and how do they work?

Cash advances serve as short-term loan options offered by credit card issuers or select financial institutions, permitting cardholders to access cash against their credit limit through ATMs or bank withdrawals. This process often incurs immediate interest charges, commonly at rates higher than those for standard credit card purchases.

When obtaining a cash advance, you're essentially borrowing against your available credit balance. Unlike regular credit card transactions that may offer a grace period before interest begins accumulating, cash advances usually start accruing interest immediately. The withdrawal amount depends on both your credit limit and the specific cash advance limit set by your card issuer.

Additionally, cash advances frequently involve supplementary fees, such as ATM charges, cash advance fees (typically a percentage of the withdrawn amount), and potentially elevated interest rates in comparison to standard credit card transactions.

Given their higher fees and immediate interest accrual, cash advances are generally considered expensive and should be used cautiously, especially for immediate financial needs, due to their higher costs relative to alternative borrowing methods.”

Are there cash advances that work with Chime?

Chime is a mobile-first banking platform offering a range of financial services, including checking and savings accounts, debit cards, and bill pay. It's renowned for its user-friendly app and innovative features like SpotMe, which allows overdrafts without incurring fees. With SpotMe, you can overdraw your account by up to $200 to cover unexpected expenses, providing a buffer for unforeseen expenses. To qualify, users need a Chime checking account, a linked debit card, and monthly direct deposits of at least $200. The borrowed amount is automatically deducted from the next paycheck, without fees or interest charges.

While Chime itself doesn't provide traditional cash advances, it allows access to various cash advance apps. These third-party apps offer quick cash amounts, often up to $250, and require repayment by the next payday. However, they might entail fees or interest charges.

Beyond these features, Chime boasts:

  • User-friendly mobile app: Intuitive and easy to navigate, the app allows you to control your finances on the go.
  • No hidden fees: Unlike traditional banks, Chime avoids hidden fees, ensuring transparency and financial control.
  • Early access to your paycheck: Receive your direct deposit up to two days early, giving you more time to manage your finances.
    High-yield savings account: Enjoy competitive interest rates on your savings, allowing your money to grow faster.”

Can cash advances affect my credit score?

Cash advances typically don't directly impact your credit score because they're not reported as separate items by credit bureaus. However, they can indirectly affect your creditworthiness. When you take a cash advance, it increases your outstanding credit card balance, which can elevate your credit utilization ratio. High credit utilization, ideally below 30%, can negatively impact your credit score.

Additionally, late payments or defaults on cash advances can lead to late fees and negative marks on your credit report, adversely affecting your score. The high interest rates associated with cash advances can also contribute to a cycle of debt, making it harder to manage finances and indirectly impacting your credit score.

Remember, multiple factors influence your credit score, such as your overall credit history, payment track record, and interest rates applied to your accounts. While cash advances might not have a direct effect, their implications can indirectly impact your credit health, so it's wise to manage them responsibly.”

More of your frequently asked questions about payday loans

Are there restrictions on how I can use a cash advance?

Yes, there can be restrictions when using cash advances, which vary based on the lender. These limitations might involve capped withdrawal amounts, commonly linked to a percentage of your credit limit, and limitations on activities like gambling or investment purchases. Considering their higher interest rates, it's advisable to prioritize using cash advances for crucial expenses or emergencies.

Can I get a cash advance if I have bad credit?

While having bad credit can make it more challenging, securing a cash advance is still plausible. Some lenders might cater to individuals with poor credit but might impose stricter terms, reduced borrowing amounts, or increased fees. Exploring options with alternative lenders or payday loans could be viable, yet be cautious of the higher interest rates and fees.

Can I pay off a cash advance early without penalties?

The possibility of paying off a cash advance early without penalties varies based on your lender's policies. Some lenders may allow early repayment without penalties, enabling you to save on interest, while others might have provisions for prepayment fees. Checking your agreement details or contacting your lender will help determine if there are additional charges for settling the advance early.

What are the rates and fees associated with cash advances?

Opting for cash advances entails encountering heightened fees and higher interest rates compared to regular credit card transactions. An initial fee of 3-5% of the withdrawal amount accompanies interest rates between 25-30% APR, influenced by your creditworthiness and the lending entity. These accumulating costs swiftly make cash advances a pricey option.