Cash advance

What is a Credit or Debit Card Cash Advance?

If you find yourself in need of cash in a short period of time, you may wish to consider taking out a credit or debit card cash advance. A cash advance is similar to a loan, but is funded using the open balance on a line of credit or credit card. Many card issuers provide this option for customers and the amount which may be borrowed is based on the amount of credit available on the card or the credit line. The card issuer may also limit the number or frequency of these advances, depending on the terms and conditions of the card. How Does a Cash Advance Work? When a credit or debit card is issued, the card issuer has the option of assigning a credit limit to the card. In some cases, the limit for a Cash advance is the available credit limit on the card while, in other situations, it is a percentage of the available credit limit. This varies by card…
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Cash advance

Cash advance

A cash advance is a service provided by most credit card and charge card issuers. The service allows cardholders to withdraw cash, either through an ATM or over the counter at a bank or other financial agency, up to a certain limit. For a credit card, this will be the credit limit (or some percentage of it). Cash advances generally incur a fee (to replace the interchange fee normally charged to the merchant on a card transaction), although this is sometimes waived if the account is in credit. When made on a credit card, they are usually charged at a higher rate of interest than a regular credit card transaction, and generally do not attract an interest-free period which is customarily given to cardholders who pay off their bill in full every month. 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 network's guidelines, thereby incurring the…
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