Cash Advance

What Does Cash Advance Mean?
A loan taken out against a line of credit or credit card, typically imposing higher-than-normal interest charges.

Investopedia explains Cash Advance
Often the interest charged on these loans is a fixed number of percentage points above the prime rate. Additionally, there is seldom a grace period in which no interest is charged. These two factors make cash advances more expensive than many other types of debt financing.

Filed Under: Banking

Related Terms

Cash Trigger
Credit
Credit Card
Interest
Line of Credit
Loan
Open End Credit
Revolving Credit
More Related Terms

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