How to Liquidate Credit Cards Into Cash
Dena Standley | August 17, 2022
You can liquidate your credit card to get cash.
Summary: Strapped for cash? Here is SoloSuit's guide to liquidating your credit card with cash advances and other methods.
Buying with credit cards is great, but sometimes you need cash. If you find yourself in a tight spot financially, you may have wondered if your credit cards can help. And they can.
Ideally, you should use credit cards for purchases instead of withdrawing cash, as with debit cards. However, cash advances on credit cards have become all too common in recent years. How do cash advances work? Are they for you? And are there other ways to liquidate credit cards into cash? Let's find out.
What are cash advances?
A cash advance off your credit card is a loan that your credit card provider lends you against the credit line. You can withdraw it from an ATM if you have a pin or over the counter at the bank. Issuers set different limits you can borrow, known as the credit limit.
If your creditor allows cash advances, the procedure is simple. At the ATM:
- Insert your credit card.
- Enter the credit card PIN.
- Select the "cash advance" option.
- Select credit if asked to choose between checking, debit, or credit.
But just how convenient are cash advances? Accessing cash when you desperately need it can save your life. Imagine that your car breaks down, you don't have the money to fix it, and no one will let you pay with credit. Or you suddenly lose your job and hence your source of income. Getting a hold of some cash can come as a relief.
That said, however, you shouldn't run the ATM just yet. It's necessary to learn about the possible drawbacks of cash advances.
Drawbacks of cash advances
The convenience of cash access is not without its share of cons. Liquidating credit cards into cash is a spurious practice with significant financial risks. Cash advances are:
- Cash advances can be expensive: Cash advances are not free of charge. You have to pay for the convenience over and above the APRs. It's payment for accessing the cash advance. They also carry higher interests than regular credit card purchases. Interests start to accrue instantly as there is no grace period.
- Cash advances have a lower limit: Whenever you withdraw cash instead of buying with your card, the limit is only a percentage of your credit limit.
- Case advances are risky: While accessing cash in a pinch is a blessing, cash advances can quickly ruin your credit if you don't keep up with the payments. You may not anticipate the higher interest rates and charges, which quickly add up.
So, are there other ways to get cash off of your credit card?
Other ways to liquidate credit cards into cash
Cash advances come with pros and cons, but there are other options for getting cash out of your credit cards. If you are wary of cash advances, try one of the following:
Some credit card issuers provide blank checks that you can write to anyone. To encourage you to use them, they may offer a no-interest period. You can write one to yourself. If you do so within the stated time, you may get cash in your bank account with zero interest. Comb through the terms and conditions attentively to ensure the pros outnumber the cons.
Buying cheaply and reselling
There is always something on sale if you care to find out. If you need cash, you can shop around for items that you can quickly sell to get the money you need. You can resell for more and earn a profit with proper due diligence.
Banks consider certain purchases, like money orders and wire transfers, as cash advances. The interest rates for such are just as high. So if you decide to buy and resell products, make sure you are saving money.
Pay more bills with credit cards
Shifting bills around can free up some cash. To do this, pay with credit for services you would usually buy with cash. Your landlord may agree to credit.
Remember that the landlord (and other service providers) may require a convenience fee for paying with credit. They ask for this payment because they are in business for cash, not credit. You can negotiate to an amount, not more than you are willing to pay. If it's too expensive, you may be better off with a cash advance.
Find someone who uses cash
A friend or family member who usually buys with cash can help. Offer to pay for what they need with your card in exchange for the money. They can give you the cash or deposit it in your account. Peer-to-peer cash apps are also handy for such transactions.
It's crucial to watch out for any legalities. Some peer-to-peer payment apps (like Venmo and PayPal) explicitly prohibit using their services to liquidate credit cards. However, there are several legal ways to receive cash from a peer.
Buy a Prepaid Gift Card
Gift cards are a great idea to get the most cash out of your credit card. The intention is to buy and then resell the card for cash. You may be fortunate enough to sell at the gift card's value or slightly lower. Either way, you get the money you need.
Cashing out your credit card can be a blessing and a nightmare if you fall behind in repayments. If you are scared of the risks involved, you may try other options to access cash rather than the credit card.
Alternatives to cashing out your credit card
If you take some time to brainstorm, you may realize that you don't have to cash your credit card. There are alternative ways to get cash. You can:
- Forego unnecessary expenses to free up the cash you need.
- Borrow soft loans from friends or family.
- Take out a personal loan with lower interest rates.
- Try the age-old yard sale of items you no longer use.
Yes, credit cards can come to the rescue when you urgently need cash. Even though consumers quickly think of cash advances, there are several less expensive ways to get some money against your credit cards. What works for you may not be what works for the next person. So carefully access your situation before deciding which option is best for you.
SoloSuit has practical advice on all matters debt and credit cards, including how to beat abusive debt collectors and creditors in court.
What is SoloSuit?
SoloSuit makes it easy to fight debt collectors.
You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.
SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.
Respond with SoloSuit
"First time getting sued by a debt collector and I was searching all over YouTube and ran across SoloSuit, so I decided to buy their services with their attorney reviewed documentation which cost extra but it was well worth it! SoloSuit sent the documentation to the parties and to the court which saved me time from having to go to court and in a few weeks the case got dismissed!" – James
We have answers.
Join our community of over 40,000 people.
You can ask your questions on the SoloSuit forum and the community will help you out. Whether you need help now or are just looking for support, we're here for you.
Ask a Question
>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate
>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)
How to answer a summons for debt collection in your state
Here's a list of guides for other states.
All 50 states.
Guides on how to beat every debt collector
Being sued by a different debt collector? Were making guides on how to beat each one.
Win against credit card companies
Is your credit card company suing you? Learn how you can beat each one.
Going to Court for Credit Card Debt — Key Tips
How to Negotiate Credit Card Debts
How to Settle a Credit Card Debt Lawsuit — Ultimate Guide
Get answers to these FAQs
Need more info on statutes of limitations? Read our 50-state guide.
Why do debt collectors block their phone numbers?
How long do debt collectors take to respond to debt validation letters?
What are the biggest debt collector companies in the US?
Is Zombie Debt Still a Problem in 2019?
If a car is repossessed, do I still owe the debt?
Is Portfolio Recovery Associates Legit?
Is There a Judgment Against Me Without my Knowledge?
Should I File Bankruptcy Before or After a Judgment?
What is a default judgment?— What do I do?
Summoned to Court for Medical Bills — What Do I Do?
What Happens If Someone Sues You and You Have No Money?
What Happens If You Never Answer Debt Collectors?
What Happens When a Debt Is Sold to a Collection Agency
What is a Stipulated Judgment?
What is the Deadline for a Defendants Answer to Avoid a Default Judgment?
Can a Judgement Creditor Take my Car?
Can I Settle a Debt After Being Served?
Can I Stop Wage Garnishment?
Can You Appeal a Default Judgement?
Do I Need a Debt Collection Defense Attorney?
Do I Need a Payday Loans Lawyer?
Do student loans go away after 7 years? — Student Loan Debt Guide
Am I Responsible for My Spouses Medical Debt?
Should I Marry Someone With Debt?
Can a Debt Collector Leave a Voicemail?
How Does Debt Assignment Work?
What Happens If a Defendant Does Not Pay a Judgment?
How Does Debt Assignment Work?
Can You Serve Someone with a Collections Lawsuit at Their Work?
What Is a Warrant in Debt?
How Many Times Can a Judgment be Renewed in Oklahoma?
Can an Eviction Be Reversed?
Does Debt Consolidation Have Risks?
What Happens If You Avoid Getting Served Court Papers?
Does Student Debt Die With You?
Can Debt Collectors Call You at Work in Texas?
How Much Do You Have to Be in Debt to File for Chapter 7?
What Is the Statute of Limitations on Debt in Washington?
How Long Does a Judgment Last?
Can Private Disability Payments Be Garnished?
Can Debt Collectors Call From Local Numbers?
Does the Fair Credit Reporting Act Work in Florida?
The Truth: Should You Never Pay a Debt Collection Agency?
Should You Communicate with a Debt Collector in Writing or by Telephone?
Do I Need a Debt Negotiator?
What Happens After a Motion for Default Is Filed?
Can a Process Server Leave a Summons Taped to My Door?
Learn More With These Additional Resources:
Need help managing your finances? Check out these resources.
How to Make a Debt Validation Letter - The Ultimate Guide
How to Make a Motion to Compel Arbitration Without an Attorney
How to Stop Wage Garnishment — Everything You Need to Know
How to File an FDCPA Complaint Against Your Debt Collector (Ultimate Guide)
Defending Yourself in Court Against a Debt Collector
Tips on you can to file an FDCPA lawsuit against a debt collection agency
Advice on how to answer a summons for debt collection.
Effective strategies for how to get back on track after a debt lawsuit
New Hampshire Statute of Limitations on Debt
Sample Cease and Desist Letter Against Debt Collectors
The Ultimate Guide to Responding to a Debt Collection Lawsuit in Utah
West Virginia Statute of Limitations on Debt
What debt collectors cannot do — FDCPA explained
Defending Yourself in Court Against Debt Collector
How to Liquidate Debt
Arkansas Statute of Limitations on Debt
Youre Drowning in Debt — Heres How to Swim
Help! Im Being Sued by My Debt Collector
How to Make a Motion to Vacate Judgment
How to Answer Summons for Debt Collection in Vermont
North Dakota Statute of Limitations on Debt
ClearPoint Debt Management Review
Indiana Statute of Limitations on Debt
Oregon Eviction Laws - What They Say
CuraDebt Debt Settlement Review
How to Write a Re-Aging Debt Letter
How to Appear in Court by Phone
How to Use the Doctrine of Unclean Hands
Debt Consolidation in Eugene, Oregon
Summoned to Court for Medical Bills? What to Do Next
How to Make a Debt Settlement Agreement
Received a 3-Day Eviction Notice? Heres What to Do
How to Answer a Lawsuit for Debt Collection
Tips for Leaving the Country With Unpaid Credit Card Debt
Kansas Statute of Limitations on Debt Collection
How to File in Small Claims Court in Iowa
How to File a Civil Answer in Kings County Supreme Court
Roseland Associates Debt Consolidation Review
How to Stop a Garnishment
Debt Eraser Review
Do Debt Collectors Ever Give Up?
Can They Garnish Your Wages for Credit Card Debt?
How Often Do Credit Card Companies Sue for Non-Payment?
How Long Does a Judgement Last?
How Long Before a Creditor Can Garnish Wages?
How to Beat a Bill Collector in Court