Card Issuers Are Offering Less Expensive Ways to Access Your Credit Line. Advertiser disclosure: We're the first to consider you a priority. Every every time. We believe that every person should be able make financial decisions without hesitation. And while our site doesn't feature every company or financial product on the market We're pleased of the advice we offer, the information we provide and the tools we develop are impartial, independent simple, and cost-free. So how do we earn money? Our partners compensate us. This could influence the types of products we review and write about (and where those products appear on our website) however it does not affect our suggestions or recommendations, which are grounded in many hours of study. Our partners do not be paid to ensure positive ratings of their goods or services. . Card Issuers are Offering Less Expensive Methods of Accessing Your Credit Line Cash advances that cost a lot of money are not the only option for tapping into your credit line. But there are drawbacks to be aware of. By Melissa Lambarena Lead Writer | Credit cards credit cards, loans Melissa Lambarena is a lead writer on the credit cards team of NerdWallet. She has enthusiastically covered credit card related topics for more than six years. Her previous experiences include nine years of experience as an author for various websites and publications. With her efforts, she strives to help users extract benefits from credit cards in order to meet financial goals like increasing their budget, establishing credit, taking trips to the places they've always wanted to go and repaying debt. She investigates these topics along with others in The Millennial Money column featured in The Associated Press. Her writing has also been featured in The New York Times, Chicago Tribune, The Washington Post, USA Today and Yahoo Finance, among others. Melissa holds a bachelor's degree of sociology, from the University of California, Los Angeles. Dec 1, 2022 Edited By Kenley Young The editor who is assigned Credit score, credit cards Kenley Young is the director of daily credit card coverage for NerdWallet. Before that, he was a homepage editor and digital content producer for Fox Sports, and before that , a front page editor at Yahoo. He has decades of experience in both digital and print media, with stints as a copy desk chief as well as a wire editor as well as an editor of the metro of the McClatchy Newspaper chain. Email:
. Many or all of the products featured here are from our partners who pay us. This affects the products we feature and where and how the product appears on the page. However, this does not affect our opinions. Our opinions are our own. Here is an alphabetical list of . Credit cards are a convenient method of paying for things, but historically they've lacked the flexibility or affordability to tap into your credit line beyond making purchases. The traditional only other ways to tap your credit line for money was an, which is usually with a high cost of interest and high fees. If your finances are in poor shape, that type of expensive short-term loan could cause more problems. But lately, more convenient and less expensive options are popping up. In the past few times, the traditional issuers of credit cards and startups have come up with products and features that make it simplerand more affordable to tap your credit line to pay friends, pay off larger purchases with lower interest rates, cover a bill you can't normally pay by credit card or even get cash deposited to your bank account. >> MORE: Easier peer-to-peer transactions Never carry cash these days? Perhaps you're only a couple of dollars short of your check you'll receive at dinner? It's possible to consider a feature like American Express's which was launched in November of 2020 and accessible to eligible cards via AmEx's mobile apps. The "Send" part of this feature lets you use your AmEx card to make payments to other individuals through or however, without having to pay the transaction costs that normally apply to credit cards that are used for on these platformsgenerally, around 3 percent. The terms apply, with limitations on the amount you are able to transfer, and these transactions won't be eligible for rewards. However, it could be a great solution for splitting the costs of gifts, food or other items. "We've certainly seen a lot of sustained user engagement," said Stephanie Schultz Vice president and head of the emerging strategic partnership of American Express. "One of the most popular categories we've seen been the gifting of gifts, particularly during the Christmas season." Keep in mind When you make a charge to your credit card, you'll need to pay for the "Send" transaction in full by your due date to avoid accruing interest. The terms and conditions apply. More: Flexible financing and installment-loan options What if you want to finance a larger expense? Certain card issuers and startup companies have made it possible to turn your credit line into an installment loan. Chase and Citi for instance, provide and , respectively, to select cardholders. These services function similarly to a personal loan at a financial institution with money deposited straight into the bank account. You'll be given a specific time frame to pay the loan with a set monthly payment. You'll be charged interest, but possibly at a rate that's lower than the credit card's APR. These options make it possible to obtain a loan without an application that means there's no need to create a new credit report credit score. "With My Chase Loan, customers have told us that the possibility of taking a loan without a credit check, no credit check as well as no needing to open a brand new bank account, and at an APR that's less than their card's normal APR, is attractive," said a Chase spokesperson in an email. "They are also pleased with the simplicity in knowing their month-to-month repayment amount and loan duration in advance, as well as reassurance that there is no origination or early payment cost." If you're looking to pay down a large purchase, this kind of choice could be a better deal rather than charging it directly onto your card . In addition, it's less expensive than a cash advance. Keep in mind This is because these programs are specific, and therefore may not be available to anyone in all instances. Include the possibility of impact on your credit utilization (and your credit scores) and the total price of the loan even at an APR lower. The loan amount you're able to apply for will depend on your credit limit and creditworthiness. Hence, it's still worthwhile to compare personal loan rates offered by other institutions. More Tips for Nerdy If you're aiming to break up an individual purchase with a credit card into more manageable chunks, you could instead explore Chase's My Chase Plan option or Citi's Flex Pay feature. In the same way as the Mastercard payment platform is currently launching a service called . Terms and charges could apply, however these options can make monthly payments more predictable. AmEx also offers a feature with there is a fixed monthly cost, but you'll know how much you'll pay each month. Terms apply. >> MORE: Options from start-ups, too. The startup company Upgrade offers a unique as well as flexible product -it incorporates elements from credit cards and personal loans. When you apply it as a credit card, the remaining balances are converted into installment loans. If you choose to use it as an individual loan it is possible to get funds deposited into the bank account of your choice. In either case you'll have the option of repaying the amount in equal monthly installments with a fixed interest rate within a specific timeframe. What to keep in mind: The APR you qualify for may differ depending on the loan, and just like other installment loan options you should check rates with other lenders too. More Third-party options: If your credit card provider doesn't offer as much flexibility in access to your credit line, third-party options may offer another avenue. For instance the service, which costs a fee, lets you use eligible credit cards to pay for expenses that aren't normally paid in this way, such as rent, mortgage, day care, utilities and more. You charge your card through Plastiq in the amount of the charge (plus the 2.9 percent processing fee) Then, Plastiq will pay the recipient for you. This can be a helpful service in the event that, for example, a bill is due today but you need some breathing room as you wait for your pay to be received. Also, unlike other options, you'll be able to accrue credit card rewards which could offset the processing cost. In the past, Berna Anat, a San Francisco resident and content creator, made use of this method to pay for bills and earn points for a trip in New Zealand and other destinations. "I do not charge only the amount of money I had already saved up for the period," she said. Keep in mind: While the 2.9 processing fee of 2.9 percent can be cheaper than a cash advance, it's still huge costs, particularly when it comes to larger transactions. If you aren't able to pay the bill on time by the due date for your credit card then you'll be charged interest at the rate of your credit card's APR which will be quite expensive. Additionally, certain credit cards aren't compatible with bill payment services from third parties. Before making a purchase, you should check with the issuer how (or whether) it will be handled. It may be considered an advance on cash, for example, rather than an actual purchase. >> MORE: About the author: Melissa Lambarena is a credit cards journalist at NerdWallet. Her work has been featured by The Associated Press, New York Times, Washington Post and USA Today. In a similar vein... Choose the right credit card that is suitable for you. Whether you want to pay less interest or earn higher rewards, the right card's available. Simply answer a few questions and we'll narrow the results for you. Explore even more in credit Cards Get more smart money moves delivered directly to your inbox. Sign-up and we'll email you Nerdy content on the financial topics that matter most to you as well as other methods to help you make the most from your money. Make the best money moves

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