A cash advance is a financial service provided by credit card issuers or some financial institutions that allows cardholders to withdraw cash against their credit limit. It essentially allows you to borrow money from your credit card instead of using it for purchases.
To obtain a cash advance, you can typically visit an ATM or a bank branch that accepts your credit card. You’ll need to enter your PIN and select the cash advance option, specifying the amount you wish to withdraw. The amount is then charged to your credit card, and you receive the cash.
Not all credit cards offer cash advance services. However, many credit cards, especially those issued by major banks, do provide this option. It’s important to check with your credit card issuer or refer to your card’s terms and conditions to determine if cash advances are available and any associated fees or limitations.
Yes, cash advances typically come with fees and interest charges. Common fees include a cash advance fee, which is usually a percentage of the amount withdrawn, and an ATM withdrawal fee if you use an ATM to access the cash. Additionally, interest on cash advances is often higher than the interest charged for regular purchases, and interest accrues immediately without a grace period.
The maximum amount you can withdraw as a cash advance depends on your credit limit and the terms set by your credit card issuer. It’s important to note that your available credit limit may be reduced by the amount of the cash advance, and there may be daily or per-transaction withdrawal limits as well.
