Milestone Credit Card Cash Advance: Fees, Limits, and How to Use It Safely

Sometimes life throws unexpected expenses your way — a car repair, an emergency bill, or needing cash when your bank is closed. In such moments, some cardholders may be tempted to treat their credit card like an ATM. That’s called a cash advance. But with most credit cards, including the Milestone Credit Card (often issued by The Bank of Missouri), it’s costly and risky.

In this article, we’ll explain:

• What a cash advance is and how it differs from regular purchases
• Known features of Milestone’s cash advance service (fees, APR, limits)
• How to get a cash advance with a Milestone card
• The pros and cons of using cash advances
• Step-by-step guidance for Milestone cardholders
• Tips to avoid high fees or debt traps
• Consumer protection and your legal rights
• Frequently asked questions

What Is a Cash Advance?

A cash advance is a credit card transaction in which you borrow cash against your credit line rather than buying goods or services. Common ways:

• Withdrawing cash from an ATM using the credit card
• Getting cash from a bank teller with your card
• Using convenience checks or a similar “cash advance check” linked to your card

Here’s how it differs from a regular purchase:

Feature	Regular Purchase	Cash Advance
Grace Period	Yes (if you pay in full each month)	No — interest starts immediately
Interest Rate (APR)	Typically lower	Generally higher
Fee	Usually none	Usually a transaction fee (e.g., 3–5%)
Impact on Credit	Normal credit utilization	Adds a higher-interest balance, risk of higher utilization
Application	Buying goods or services	Receiving cash directly

Because interest accrues immediately and rates tend to be steep, cash advances are one of the more expensive ways to borrow money.

Milestone Credit Card Cash Advance Features

Below is what public sources reveal about Milestone’s cash advance terms. Note: Terms may change over time, and features may vary by cardholder. Consumers should verify directly with Milestone (or your Milestone card’s issuer) for the most up-to-date details.

APR (Interest Rate)

• Milestone’s cash advance APR is often listed as 35.90% (variable) on many credit-card aggregator sites.
• The card’s regular purchase APR is also 35.90%.
• The Milestone account agreement states that interest on cash advances begins accruing on the transaction date (i.e., no grace period)
• The agreement also mentions a minimum interest charge, meaning even small advances may incur some fixed interest cost.

Cash Advance Fee

• A cash advance fee of 5% of the amount (minimum $5) is commonly cited in user forums and credit help sites.
• Some sources also mention that Milestone may limit your account to one cash advance transaction per day.

Limits and Availability

• Milestone’s cardholder FAQ page states: “Yes, subject to credit approval, you can use your Milestone Mastercard for cash advances at many …” (i.e., typical cash advance access)
• The PDF cardholder agreement (Bank of Missouri) says “we may limit your Account to only one Cash Advance transaction per day.”
• Public sources suggest that the daily cash advance limit is not always disclosed (often a small portion of your credit limit). Some people report small allowable amounts like $100–$500, but that may not apply to all Milestone cardholders.

Because the official terms do not always list an explicit dollar limit for cash advances, your allowable amount may depend on your credit profile, statements, and issuer rules.

How to Get a Cash Advance with Your Milestone Card

If your Milestone card supports cash advances (which many do, subject to credit approval), here’s how you might access one:

1. Find an ATM that accepts Mastercard / network ATM
   • Insert your Milestone card, use your PIN (if set), and choose the “cash advance” or “credit card cash advance” option.
   • You may incur ATM surcharges in addition to your card’s fee.
2. Bank or credit union teller withdrawal
   • At a branch that is part of your card’s network (Mastercard, partner banks), request a “cash advance” from your credit card account—ask for the amount you need.
3. Convenience checks or “credit card checks”
   • Some credit card issuers provide special checks tied to your credit line; cashing or depositing those usually triggers a cash advance.
   • Check your Milestone card agreement or statements to see if you receive such checks.
4. Online or mobile withdrawal (rare)
   • Some card issuers allow you to request a cash advance transfer into your bank account via the issuer’s online portal. (Milestone does not clearly advertise this, so check your specific account or contact customer support.)

When doing any of the above, confirm that the transaction will be coded as a cash advance, not a purchase, so you know the rate and fees that apply.

Fees, APR, and Repayment Rules

Let’s unpack how costs and repayment rules work with cash advances on Milestone:

Fees and Interest

• Cash advance fee: 5% of the amount, with a minimum $5 fee.
• Interest (APR): 35.90% variable, charged from the transaction date (no grace period).
• Minimum interest: If interest is charged, there is a floor (i.e., even on small advances).
• Daily interest accrual: Because interest starts immediately, the balance grows daily until paid off.
• ATM surcharges or cash‐handling fees: The ATM itself may charge a fee (not from Milestone, but the ATM operator).

How Payments Are Applied

Credit card issuers typically apply payments in this order:

1. Past due balances
2. Fees and interest
3. Balances with the highest APR (often the cash advance balance)
4. Lower APR balances

Because your cash advance is likely the highest APR, extra payments tend to go toward reducing that balance first (though policies vary).

Repayment Timing and Grace Periods

• Unlike purchases, there is no grace period for cash advances.
• Interest accrues from the date of transaction until your payment covers the balance.
• If you pay off your entire card balance (including the cash advance), you won’t pay interest after paying—but you still pay what accrued plus the fee.

Pros and Cons of Using a Cash Advance

Pros

• Immediate access to cash: Useful in emergencies when you need liquid funds and don’t have other options.
• Convenience: ATMs are ubiquitous, and withdrawals can be quick.

Cons

• High cost: 35.9% APR is extremely steep compared to many personal loans or lines of credit.
• No grace period: Interest begins immediately, making short-term use still expensive.
• Transaction fee: The 5% (minimum $5) fee further increases the cost.
• Credit utilization risk: A large cash advance can push your credit utilization ratio high, hurting your credit score.
• Potential overdraft misinterpretation: Some transactions (e.g., transfers, digital wallet moves) may count as cash advances even if they look like purchases.
• Debt escalation: If you can’t pay it off quickly, compounding interest can snowball.

Step-by-Step Guidance for Milestone Cardholders

If you already have a Milestone card and are considering a cash advance, here’s how to proceed (and how to minimize damage):

1. Log in and check your account
   • Confirm whether cash advances are enabled for your account (some accounts may restrict or block them).
   • If enabled, check your cash advance limit if disclosed (some statements may break down “available for cash advances”).
2. Set up or confirm your PIN
   • You’ll need a PIN to use your card at ATMs. If you never set one, call Milestone’s customer service to get or reset it.
3. Estimate the cost
   • Suppose you withdraw $200:
     • Fee = 5% of $200 = $10
     • That makes your starting “balance” = $210
     • Interest accrues daily at 35.90% APR (≈ 0.0983% per day) from day one
4. Choose your withdrawal method
   • If an ATM is nearby and convenient, you can use that (but add ATM surcharge).
   • Alternatively, consider a branch withdrawal (if supported), or a convenience check.
   • Avoid doing multiple small advances (you may be limited to one per day per agreement).
5. Withdraw only what you need
   • Because costs are high, limit yourself to the minimum necessary cash to prevent runaway interest.
6. Pay it off ASAP
   • The faster you pay off the cash advance portion, the less interest you’ll incur.
   • When making payments, try to direct extra funds to the cash advance balance.
7. Avoid repeating
   • Use cash advances only as a last resort. Explore alternatives (see next section).

Tips to Avoid Unnecessary Fees or Debt

• Use emergency savings first: Keep a small buffer for true emergencies so you don’t rely on credit.
• Consider low-rate personal loans or peer-to-peer lending: These often offer lower interest rates than cash advances.
• Look into credit union cards or lines with cash access via checks rather than credit advances: They may have friendlier rates.
• Pay more than the minimum: Especially aim to cover the cash advance portion first.
• Avoid ATM surcharges: Use ATMs in your card’s network or partner banks.
• Check monthly statements: Ensure your cash advance was coded properly, and monitor interest charges.
• Make a budget so you don’t fall into repeated reliance on credit.

Consumer Protection and Legal Rights

As a U.S. credit card user, you have rights under federal law and consumer protection mechanisms:

• Truth in Lending Act (TILA)
  Credit card issuers must disclose APRs, fees, and terms. If Milestone changes terms, they must notify you in advance.
• Credit Card Accountability, Responsibility, and Disclosure Act (CARD Act)
  Helps protect consumers from sudden rate hikes, among other rules.
• Fair Credit Billing Act (FCBA)
  You have the right to dispute billing errors within 60 days of statement receipt.
• Credit reporting rights
  Your account (including cash advance usage) is reported to credit bureaus. Late or defaulted payments can harm your credit history.
• State usury laws and limitations
  In some states, there are caps on permissible interest rates, though those are often superseded by federal or issuer rules depending on the contract and arbitration clauses.
• “No negative surprises”
  Under disclosure laws, Milestone must clearly state the cash advance rate, fees, and terms. If you believe the card statements or agreement misrepresented the terms, you can escalate to regulators like the Consumer Financial Protection Bureau (CFPB).
• Hardship assistance
  If you face real financial hardship, ask Milestone’s customer support if they offer hardship programs, lower payments, or temporary forbearance options.

Read Also- Mindful Calmness Charge on Credit Card

FAQ

Can I use my Milestone card to get cash at any ATM?

Only ATMs that accept Mastercard (or the relevant network) will work. You also must have a PIN. However, not every ATM honors credit card advances, and some may decline if your card or account isn’t allowed for that service.

How exactly is the cash advance fee calculated?

Based on public sources, Milestone charges 5% of the advance amount, with a minimum fee of $5.

Is the interest for cash advances reported to credit bureaus?

The balance, payment history, and utilization—including any outstanding cash advance balance—are reported to credit bureaus. The fact that some of your balance was from a cash advance generally doesn’t show as a separate line item to the bureaus, but it affects overall utilization.

Is there a grace period on Milestone cash advances?

No. Interest starts accruing immediately on the transaction date.

What if I pay off my entire credit card statement including cash advance portion?

That eliminates further interest after payment, but you’ll still owe the interest and fees that accumulated from the moment of the cash advance until the date of full payment.

Can Milestone refuse my cash advance request?

Yes. The issuer may block cash advances based on account status, credit approval, fraud concerns, or internal policies. Always check your account and contact support to confirm whether advances are allowed.

Conclusion

Cash advances can feel like a quick lifeline when you’re strapped for cash, but they come with heavy costs and risks. With Milestone credit cards, the publicly known terms show a 35.90% APR, a 5% cash advance fee (minimum $5), and no grace period. While you might be able to pull cash from an ATM, branch, or convenience check, it should only be a last-resort strategy.

If you’re a Milestone cardholder, verify your specific terms in your cardholder agreement or by calling customer service before trying a cash advance. And if you do use one, only withdraw what you truly need and aim to pay it off as soon as possible to reduce interest charges. Above all, remember: borrowing smartly, building an emergency fund, and using less expensive credit options can protect you from getting stuck in a cycle of high-cost debt.