Unionbank Credit Card Cash Advance Calculator
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Reviewed by Calculator Editorial Team
UnionBank credit card cash advances provide quick access to funds when you need them, but they come with fees and interest charges. Our calculator helps you estimate the total cost of a cash advance so you can make informed financial decisions.
How Cash Advances Work
A cash advance is a loan you take out using your credit card. Instead of using the card for purchases, you withdraw cash from an ATM or request a cash advance from your bank. The funds are typically deposited into your bank account within a few days.
Cash advances are different from balance transfers. A balance transfer moves existing card balances to a new card with a 0% APR period, while a cash advance is a new loan.
Key Features of Cash Advances
- Quick access to funds (usually within 1-3 business days)
- No credit check required if you have an existing credit card
- Flexible repayment terms (typically 6-12 months)
- Available at ATMs or through your bank's online banking
When to Use a Cash Advance
Cash advances can be useful in emergency situations or when you need funds that aren't available through other means. Common scenarios include:
- Unexpected medical expenses
- Home repairs or maintenance
- Car repairs or emergencies
- Travel expenses when you don't have a credit card
- Large purchases that exceed your available credit
Understanding Cash Advance Fees
Cash advances typically come with several fees and charges that can significantly increase the total cost of borrowing. The main fees associated with cash advances include:
Cash Advance Fee
This is a one-time fee charged by your bank or credit card issuer for processing the cash advance. The fee is usually a percentage of the advance amount.
Interest Charges
Cash advances are typically charged at a higher interest rate than purchases made with your credit card. The interest rate depends on your creditworthiness and the terms of your credit card agreement.
Total Cost of Cash Advance
Total Cost = Advance Amount + (Advance Amount × Cash Advance Fee) + (Advance Amount × Interest Rate × Time)
Other Potential Fees
- Late payment fees if you don't make payments on time
- Returned payment fees if your bank can't process your payment
- Overlimit fees if you exceed your credit limit
It's important to compare the total cost of cash advances from different banks and credit card issuers to find the most affordable option.
Worked Examples
Example 1: $500 Cash Advance
Let's say you take out a $500 cash advance with a 3% cash advance fee and a 15% annual percentage rate (APR).
Calculation
Cash Advance Fee = $500 × 3% = $15
Interest for 6 months = $500 × 15% × 0.5 = $37.50
Total Cost = $500 + $15 + $37.50 = $552.50
Example 2: $1,000 Cash Advance
For a $1,000 cash advance with a 2.5% cash advance fee and a 12% APR:
Calculation
Cash Advance Fee = $1,000 × 2.5% = $25
Interest for 12 months = $1,000 × 12% × 1 = $120
Total Cost = $1,000 + $25 + $120 = $1,145
These examples show how quickly cash advance fees and interest can add up, making it important to carefully consider whether a cash advance is the right financial solution for your needs.
Frequently Asked Questions
- How long does it take to get a cash advance?
- Most cash advances are processed within 1-3 business days. The funds are typically deposited into your bank account within this timeframe.
- Can I get a cash advance if I have bad credit?
- It depends on your specific situation. Some banks may offer cash advances to individuals with bad credit, but the terms and conditions may be less favorable than for those with good credit.
- What happens if I can't repay my cash advance?
- If you can't repay your cash advance, you may incur late payment fees, additional interest charges, and potentially damage your credit score. It's important to carefully consider whether you can afford the cash advance before taking it out.
- Is a cash advance better than a personal loan?
- The answer depends on your individual circumstances. Cash advances may be more convenient if you already have a credit card, but personal loans may offer lower interest rates and more flexible repayment terms.
- Can I use a cash advance to pay off my credit card balance?
- No, cash advances are not intended to be used to pay off existing credit card balances. If you need to pay off a credit card balance, consider a balance transfer instead.