More than just providing convenience through cashless transactions, credit cards offer additional features that go beyond everyday spending. One often overlooked feature is the cash advance, which allows you to withdraw a certain percentage of your credit limit as cash. For instance, Maya’s Landers Cashback Everywhere Credit Card lets you access up to 30% of your credit limit in cash through any Visa-supported ATM. When used strategically and repaid quickly, a cash advance can be a helpful tool in time-sensitive or emergency situations.
However, it's important to understand that careless or frequent use of cash advances can lead to added strain on your finances. Like any credit feature, using a cash advance requires discipline and careful planning. As the #1 digital bank in the Philippines, Maya aims to empower credit users like you to take full advantage of the cash advance credit card feature in a way that maximizes its value. With that in mind, here are some practical tips on how to safely and effectively make the most of your cash advance.
1. Know Your Cash Advance Limit
Before using a cash advance, understand how much you can actually withdraw. Your cash advance limit is typically much lower than your total credit limit, and attempting to withdraw more than this amount may result in declined transactions or additional fees. The cash advance limit in credit card accounts exists to promote responsible borrowing and minimize financial risk.
As mentioned earlier, if you’re a Landers Cashback Everywhere Credit Card holder, you can withdraw up to 30% of your credit limit. Being aware of this limit helps you plan ahead and make informed decisions when quick access to funds is necessary. It also lowers your chances of overspending and makes it easier to keep your borrowed amount manageable
2. Use Cash Advances Only When Truly Necessary
A key part of using a cash advance safely is knowing when it makes sense to use it. This feature is best reserved for urgent needs such as medical emergencies, urgent house or car repairs, or essential travel. It’s not intended for everyday purchases or non-essential spending.
Learning how to cash advance in credit card accounts wisely starts with timing and purpose. In some cases, a cash advance can even help you take advantage of time-sensitive opportunities, such as buying discounted equipment for a business. However, it only works in your favor if the benefit outweighs the cost and you have a solid plan to repay it. Always ask yourself if taking out a cash advance genuinely supports your financial goals or if it’s simply adding unnecessary debt.
3. Understand the Fees and Interest Involved
Using a cash advance safely also means being fully aware of its total cost. Cash advances typically come with higher interest rates than regular credit card purchases, and interest starts accumulating immediately without a grace period. Be sure to check the transaction fees as well, since they also add to the overall expense.
For Maya credit card holders in particular, the cash advance fee is a fixed PHP 200 per transaction, regardless of the amount withdrawn. This flat fee makes it easier to estimate the total cost and plan ahead. To make the most of it, you can make a single, larger withdrawal instead of multiple smaller ones. By factoring in the full cost and planning ahead, you’re better positioned to make smart financial choices and keep fees to a minimum.
4. Borrow Only What You Can Promptly Repay
A cash advance should be treated as a short-term loan, not something to carry over several months. Only borrow what you’re confident you can repay within a short period, preferably within a few weeks. The longer the balance remains unpaid, the more interest it accumulates, which can turn a manageable loan into a larger financial burden.
Keep in mind that taking out a cash advance also reduces your available credit limit, which can affect your ability to use the card for other essential needs. By borrowing within your means and repaying promptly, you maintain your credit flexibility and ensure your card remains available for future emergencies.
5. Take Advantage of Features That Give You Control
One of the safest ways to use your credit card’s cash advance feature is by using built-in tools that help you stay in control. For example, Maya credit cards let you set a cash advance spending limit directly through the Maya app. This allows you to decide in advance how much you’re comfortable borrowing, helping prevent impulse withdrawals and overborrowing. You can also use the app to track your available credit limit in real time to better manage your borrowing.
By actively monitoring your usage and adjusting your limits as needed, you gain more control over your borrowing habits. These features make the cash advance option a practical, manageable backup, one you can use confidently and responsibly.
6. Set Aside a Budget for Repayment
Taking out a cash advance should always come with a clear repayment strategy. Treat it as a top-priority bill and include it in your monthly budget. Whether the funds come from your next paycheck, side income, or trimmed-down spending, aim to pay it off as soon as possible.
Having a repayment plan helps you avoid falling behind or accumulating more debt. The sooner you pay off the advance, the less you spend on interest, reducing the risk of your charges growing into a balance that becomes difficult to manage.
Like any other credit tool, cash advances can work to your favor when used with discipline and intention. By keeping the pointers above in mind, you can turn your cash advance into a reliable solution for emergencies or time-sensitive opportunities rather than a source of added debt. With the right mindset and responsible habits, a cash advance can be a safe way to manage short-term needs without compromising your financial stability.
