Can I Get Cash from My Milestone Credit Card? The Real Deal Explained

Yes, you can get cash from your Milestone credit card through a cash advance. However, before you rush off to the nearest ATM, understanding the terms, fees, and potential consequences is absolutely crucial. Cash advances are a convenient option in a pinch, but they come with a high price tag. Let’s dive deep into the ins and outs of using your Milestone credit card to access cash.

Understanding Cash Advances with Your Milestone Credit Card

A cash advance is essentially a short-term loan offered by your credit card issuer. It allows you to withdraw cash from an ATM, bank, or other financial institution using your credit card. Think of it as borrowing money against your credit line. While readily available, cash advances are significantly different from regular credit card purchases. They are subject to specific fees and interest rates that can quickly add up.

How Cash Advances Work

The process is fairly straightforward. You use your Milestone credit card at an ATM that accepts your card’s network (Visa or Mastercard). You’ll need your Personal Identification Number (PIN), which you should have received when you activated your card. You enter the amount of cash you want to withdraw, and, assuming you have enough available credit within your cash advance limit, the money is dispensed. Alternatively, you can visit a bank that partners with Visa or Mastercard and request a cash advance from a teller.

The Cost of Convenience: Cash Advance Fees and Interest

Here’s where things get real. Cash advances are generally much more expensive than regular purchases.

• Cash Advance Fees: Milestone, like most credit card issuers, charges a fee for each cash advance. This fee is often a percentage of the amount withdrawn (e.g., 3% or 5%), or a flat fee (e.g., $10), whichever is greater. Check your cardholder agreement for the exact fee structure.
• Higher Interest Rates: The interest rate on cash advances is typically higher than the interest rate for purchases. Furthermore, it often starts accruing immediately. This means there’s no grace period, so interest begins compounding from the moment you withdraw the cash.
• No Grace Period: Unlike purchases, cash advances don’t have a grace period. With regular purchases, if you pay your balance in full by the due date, you avoid paying interest. This is not the case with cash advances; interest starts accruing immediately.
• Impact on Credit Utilization: A cash advance increases your credit utilization ratio (the amount of credit you’re using compared to your total available credit). A high credit utilization can negatively affect your credit score.

Cash Advance Limit vs. Credit Limit

It’s important to understand that your cash advance limit is usually lower than your overall credit limit. Your Milestone card agreement will specify both limits. For example, you might have a $500 credit limit, but only a $200 cash advance limit. This is a standard practice among credit card companies.

Is a Cash Advance Right for You?

Given the high costs associated with cash advances, they should be considered a last resort. Explore all other options before using your Milestone credit card for cash. Consider options like borrowing from a friend or family member, exploring personal loans, or even selling unwanted items. Only if you have no other viable options should you consider a cash advance.

FAQs about Cash Advances with Your Milestone Credit Card

1. How do I find out my cash advance limit on my Milestone credit card?

Your cash advance limit is typically stated on your monthly statement or in your online account portal. You can also call Milestone’s customer service number to inquire about your specific limit.

2. What is the interest rate on cash advances with my Milestone credit card?

The interest rate for cash advances will be listed in your cardholder agreement. It’s generally higher than the purchase APR. Remember, interest begins accruing immediately, so check this rate carefully.

3. How do I set up a PIN for cash advances on my Milestone credit card?

You likely received a PIN when you activated your Milestone credit card. If you’ve forgotten it, contact Milestone’s customer service to request a new one. They may send it to you via mail or allow you to reset it online or over the phone after verifying your identity.

4. Can I use my Milestone credit card at any ATM for a cash advance?

You can use your Milestone credit card at any ATM that accepts Visa or Mastercard, depending on which network your card is affiliated with. Look for the Visa or Mastercard logo on the ATM.

5. What happens if I don’t pay back a cash advance on my Milestone credit card?

Failure to repay a cash advance will result in interest charges accumulating daily. Late payments can also lead to late fees and potentially damage your credit score. Prolonged non-payment can lead to your account being sent to collections, further damaging your credit.

6. Are there daily limits on cash advances with my Milestone credit card?

Yes, most credit card issuers have daily ATM withdrawal limits. This limit is typically lower than your cash advance limit and is designed to protect against fraud. Check your card agreement or contact Milestone to confirm your daily ATM withdrawal limit.

7. How does a cash advance affect my credit score?

A cash advance can negatively impact your credit score in several ways:

• Increased Credit Utilization: Using a large portion of your available credit can lower your score.
• High Interest Charges: Makes it harder to pay off your balance, potentially leading to late payments.
• Hard Inquiry: Although less common, some issuers may perform a hard inquiry on your credit report when initiating a cash advance, especially if it’s a large amount or a change in behavior.

8. Can I transfer a cash advance balance to another credit card with a lower interest rate?

Yes, you may be able to transfer a cash advance balance to another credit card with a lower interest rate through a balance transfer. However, be aware that balance transfers often come with a fee (typically 3-5% of the transferred amount). Make sure the lower interest rate and any promotional periods make the transfer worthwhile.

9. Is it better to use a cash advance or take out a payday loan?

Generally, a cash advance is preferable to a payday loan, despite its drawbacks. Payday loans typically come with extremely high interest rates and fees, often far exceeding those associated with cash advances. However, both should be avoided if possible.

10. How long does it take for a cash advance to show up on my Milestone credit card statement?

A cash advance will typically appear on your online account and monthly statement within 1-3 business days. Keep an eye on your account activity to ensure the transaction is accurate.

11. What if my cash advance is denied?

Several factors can cause a cash advance to be denied, including:

• Exceeding your cash advance limit.
• Reaching your daily ATM withdrawal limit.
• Having a frozen or restricted account.
• Entering an incorrect PIN multiple times.
• The ATM running out of cash.

12. Does Milestone offer any alternatives to cash advances?

Milestone may offer payment plans or hardship programs if you’re struggling to make your payments. Contact their customer service to discuss available options. While these aren’t direct alternatives to cash advances, they may help you avoid the need for one by providing temporary relief from your debt obligations.

In conclusion, while your Milestone credit card does allow for cash advances, it’s essential to be fully aware of the high costs and potential impact on your credit score. Explore all other options first and only use cash advances as a last resort. Always review your cardholder agreement for specific terms and conditions, and practice responsible credit card management to avoid unnecessary debt.