Cash Advance


DEFINITION of 'Cash Advance'

A service provided by many credit card issuers allowing cardholders to withdraw a certain amount of cash, either through an ATM or directly from a bank or other financial agency. Cash advances typically carry a high interest rate - even higher than credit card itself - and the interest begins to accrue immediately. On the plus side, cash advances are quick and easy to obtain in a pinch.

BREAKING DOWN 'Cash Advance'

Sometimes businesses with less-than-perfect credit use cash advances to finance their activities. In some instances these advances are even paid for with future credit card receipts. The amount of the cash advance depends on the credit score of a business and its credit card sales. In almost all cases, cash advances should be viewed as a method of last resort.

  1. Interest

    The charge for the privilege of borrowing money, typically expressed ...
  2. Credit Card

    A card issued by a financial company giving the holder an option ...
  3. Line Of Credit - LOC

    An arrangement between a financial institution, usually a bank, ...
  4. Credit

    1. A contractual agreement in which a borrower receives something ...
  5. Loan

    The act of giving money, property or other material goods to ...
  6. Open-End Credit

    A pre-approved loan between a financial institution and borrower ...
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  1. Does the Walmart credit card have an annual fee?

    The Walmart credit card does not charge annual fees to its cardholders. It does, however, have other fees associated with ... Read Full Answer >>
  2. What are the different types of cash advances?

    There are a few different types of cash advances with varying features, but the common denominators among all cash advances ... Read Full Answer >>
  3. How does interest work on a cash advance from my credit card?

    Many credit card lenders treat interest on cash advances differently than interest on regular purchases. For starters, the interest ... Read Full Answer >>
  4. Does a cash advance hurt my credit score?

    Taking out a cash advance has no direct impact on your credit or credit score, but it can have an indirect impact in various ... Read Full Answer >>
  5. What's the difference between a balance transfer and a cash advance?

    Balance transfers and cash advances are features of credit card accounts designed to give consumers access to cash for different ... Read Full Answer >>
  6. What are some examples of overdraft protection?

    The overdraft fees for a checking account can be substantial, but most banks offer several methods of overdraft protection. ... Read Full Answer >>

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