Cash Advances Just Got More Expensive for U.S. Bank Credit Cards – CNET

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U.S. Bank has increased the Cash Advance APR on all credit card products to 26.24%. In response to the Fed increasing interest rates, many credit card issuers are raising their various APRs

While cash advances may seem like a helpful strategy in a pinch, they’re a notoriously expensive type of loan. A cash advance allows cardholders to withdraw cash from their credit line, but comes with an upfront fee and interest, known as the cash advance APR. The cash advance fee is either a flat amount or a percentage of the withdrawn balance. For example, for the U.S. Bank Visa® Platinum Card, the cash advance fee is 5% of the withdrawn balance, or a minimum of $10. 

So, if you were to take a $1,000 cash advance for a year through your U.S. Bank Visa Platinum card, you would be charged a $50 cash advance fee. If you didn’t pay off the balance after a year, you would owe $262.40 in interest charges, bringing the total cost of the loan (besides the principal) to $312.40, or 31.24% of what you originally withdrew.

Affected credit cards include the U.S. Bank Visa® Platinum Card, U.S. Bank Altitude® Go Visa Signature® Card, U.S. Bank Altitude® Connect Visa Signature® Card, U.S. Bank Cash+ Visa Signature® Card and the U.S. Bank Business Triple Cash Rewards World Elite(TM) Mastercard®.

Read more: Best 0% Intro APR Credit Cards

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