At times of financial emergencies, having a quick source of funds can be a lifesaver. This is especially true for scenarios where cash is specifically needed, such as when dealing with hospitals or establishments that only accept cash. In such cases, then you may consider a cash advance credit card transaction to quickly get those much-needed funds.

A cash advance is a credit card feature that allows you to withdraw part of your credit limit as cash from an ATM. Note that cash advances have different fees than your typical credit card purchases, so it’s always a must to read your card’s terms carefully before using this feature. Think of a cash advance as a high-interest loan so you wouldn’t be tempted to use it for unnecessary expenses. 

That being said, knowing that you can count on cash advances during dire situations can provide peace of mind and assurance. Here are some scenarios when a cash advance can be a practical solution for your financial troubles.

1. Emergency Medical Expenses

A medical emergency can be incredibly stressful, both emotionally and financially. It’s important for you or your family member to obtain the medical treatment needed right away to prevent any further complications or risks, and also to avoid longer hospital stays (that can result in higher bills). Cash advances can be helpful in covering your expenses in such scenarios, especially since cash might be required immediately. 

Note as well that not all hospitals are equipped to accept credit cards and you may not have the luxury of time to transfer to a different one that does if it’s an emergency. Thus, cash advances can provide instant funds to cover the medical procedure or medicine costs without having to wait for bank transfers or approvals.

2. Unplanned Repairs or Utilities Payments

The Philippines is no stranger to calamities—in fact, the country is hit by an average of 20 typhoons each year. Some of these disasters can inevitably lead to property damage that will require immediate repairs. Many small service providers, however, often operate on a cash-only basis. A cash advance in this situation can help you get the funds needed for any unexpected house or vehicle repairs, allowing you to get back on your feet much quicker.

There may also be times when you’ll encounter utility emergencies such as an unexpected plumbing issue or service disconnections. A cash advance can be a quick way to meet these sudden costs without disrupting your daily life or compromising your home’s functionality.

3. Bridging Gaps Between Salary or Income Delays

If you’re a freelancer who isn’t on a definite payout schedule, a small business owner whose cashflow can vary greatly, or even just an employee who experiences salary delays, then you may at times find yourself short on funds. This might mean being unable to meet your daily expenses and other financial obligations. To help bridge the gap until you receive the income you’re waiting for, you can take out a cash advance. This way, you can continue to pay for necessities such as food, transportation, and rent without incurring additional financial strain.

In addition to your cash advance, you may also use your credit card to save money by utilizing its cashback rewards. For instance, Landers Cashback Everywhere Credit Card by Maya can offer a cash advance of up to 30% of your assigned credit limit while also providing up to 5% cashback at Landers, 2% on dining spends, and 1% on all other qualified transactions. Thus, you get the additional funds you need while saving money on necessities.

4. Family Emergencies or Support

Filipinos deeply value their families, which is why it’s common for many to provide immediate financial assistance should an immediate member need it for emergencies and other expenses. Whether it’s for a funeral, tuition fees, or perhaps medications, cash might be the only viable solution. A cash advance ensures that you have funds on hand to give to relatives in need without delay. 

Moreover, older people such as aging parents or grandparents may not be familiar with navigating banking apps or digital wallets. Giving them cash upfront is a simpler way to help them out rather than cause confusion over digital money transfers.

5. Travel Emergencies in Remote Areas

When traveling within the Philippines, particularly in provinces or islands with limited banking infrastructure, having cash on hand is often essential. This ensures that you can cover any sudden expenses such as additional travel costs, emergency lodging, or medical care during your travels. Note as well that remote areas and the local vendors in them probably don’t have the infrastructure to accept cashless payments, which is why cash is still the safest and most reliable payment option to bring with you to avoid any hassle.

Cash advances can be extremely helpful in emergency situations such as the ones discussed here. Still, it’s important to use this feature wisely so that you don’t impact your long-term finances. Always read the terms and fees associated with your credit card’s cash advance to ensure you can utilize it responsibly during moments when you truly need it the most.