When it comes to credit cards, one of the scariest things you can do are cash advances. The reason being that sometimes you may not realize certain things are considered a cash advance, and by the time you realize it, it’ll be too late. The reason you want to avoid cash advances is that they will incur a much larger than normal fee associated with it.
When you normally charge a credit card, you’ll get charged interest of somewhere between 15-30% based on your specific card. But you’ll only be charged interest (generally) after the statement cuts, so you’ve got a ton of time between the charge and getting interest building up. Unfortunately, with cash advances, the fee starts building up right away.
Knowing this, it’s important to know what will be considered a cash advance on each of your credit cards. American Express has expanded their definition.
Starting November 1st, the change will go into effect.
“A cash advance is a charge to get cash or cash equivalents, including travelers Cheques, gift Cheques, foreign currency, money orders, digital currency, casino gaming chips, race track wagers, similar offline and online better transactions, and digital precious metal products”
Digital currency and digital precious metals have been added to the definition.
The main difference between the new and old definition has to do with the digital products. Both digital currency and digital precious metals have previously not been considered cash advances. This change is important because cash advances not only incur a high interest fee, but they also do not count towards the sign up bonuses on American Express cards. The last thing you want to have happen s you thinking you’re primed for earning a 120,000 Membership Reward offer only to have missed it due to something dumb like this.
Will this change impact you at all, or have you been avoiding any form of cash equivalents with American Express cards? Let us know down in the comment section below!