What is a Cash Advance?

Simply a Loan

It simply is a loan. You can use this service if you have a:

• Credit Card
• Debit Card

You allowed to withdraw cash, either through an ATM or over the counter at a bank or other financial agency. There is typically a limit to how much you can withdraw. It is important to ask the people you are apply a loan from for more information. Usually for a credit card, the withdraw limit is the credit limit (or a percentage of it).

There is a Catch

• Cash advances generally incur a fee ( interchange fee), although this is sometimes waived if the account is in credit.
• When made on a credit card, there can usually be high rate of interest fee charges

NOTE:

Some “purchases” made with a credit card of items that are viewed as cash are also considered to be cash advances in accordance with the credit card’s guidelines, thereby incurring the higher interest rate and the lack of the grace period. These often include money orders, lottery tickets, gaming chips, and certain taxes and fees paid to certain governments.