Cash Advance Là Gì

LaToya Irby is an expert on credit cards, credit scores and monitoring, budgeting, và banking products and services. She holds a degree in business from the University of Alabama.

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Eric Estevez is financial professional for a large multinational corporation. His experience is relevant khổng lồ both business và personal finance topics.

In addition to allowing you to make purchases or transfer a balance from another credit thẻ, your credit thẻ may come with the ability to get cash. You might consider taking a cash advance from your thẻ if you"re shopping with a business that only takes cash or you"re in a pinch and don"t have enough money in your ngân hàng trương mục. Before you go this route, know that it"s one of the most expensive sầu credit card transactions you can make.

What Is a Cash Advance?

A cash advance on your credit thẻ is an amount of cash borrowed against your credit limit. It"s lượt thích withdrawing money from the ATM with your debit card, except the cash comes from your credit limit rather than your bank account balance. That means you have to lớn pay it baông xã with interest. Cash advance transactions can be performed by using your PIN at an ATM or by using a convenience check mailed by your credit thẻ issuer.

Though the names are similar, credit thẻ cash advance is a little different from a payday cash advance loan taken with a payday loan lender. The payday cash advance generally doesn"t require a traditional credit kiểm tra và must be repaid directly to the payday lender, usually by your next payday.

Your credit thẻ cash advance is tied khổng lồ your credit card (which required a credit check to be approved) & comes with the option to pay over a period of time as long as you make minimum payments.

How Much Cash Can You Withdraw?

You can withdraw cash up to your cash advance limit, which may be lower than the credit limit you"re given for purchases.

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Cheông chồng a recent copy of your credit thẻ statement or log in lớn your online trương mục to lớn check your cash advance limit và the amount of credit you have sầu available for a cash advance.

Your available cash advance limit may be lower than your total limit if you already have sầu a balance on the credit thẻ.

Cost of a Cash Advance

Cash advances have sầu a higher cost than regular transactions. You"ll be charged a cash advance fee và, usually, a higher interest rate than you"d pay for purchases. The cash advance fee can be charged as a percentage of the cash advance or a flat rate. For example, your credit card issuer may charge a fee of 5% of the advance or $10, whichever is greater. Chechồng your credit thẻ terms to lớn confirm the exact fee you"ll pay for cash advances.

Cash advances don"t have sầu a grace period, meaning interest begins accruing on the balance as soon as the transaction is completed. This is true even when you pay your balance in full và start the billing cycle with a zero balance.You"ll always pay a finance charge on a cash advance even if you pay it in full when your billing statement comes. To reduce the amount of interest you pay on a cash advance, pay it off as soon as possible, even if that means paying before your billing statement comes.

In addition khổng lồ the cash advance fee, you"ll also be charged an ATM fee when you use an ATM for a credit card cash advance.

There are some creative sầu ways khổng lồ get cash from a credit thẻ without doing a cash advance. Consider reselling gift cards or shifting some bills around.

Paying Off a Cash Advance Balance

When your card"s cash advances carry a different interest rate from purchases or balance transfers, your monthlypayment may be split up among mỏi the balances, depending on how much you pay. If you only make the minimum payment, it will likely be applied lớn the balance with the lowest interest rate—that"s up to lớn your credit card issuer.

The payment amount above the minimum will be applied to the balance with the highest interest rate, which is likely your cash advance balance. So, if you"re carrying multiple balances, you"ll have lớn pay more than the minimum if you want lớn reduce the cash advance balance quickly.

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When a Cash Advance Isn't Cash

Some transactions are treated as a cash advance even though you never physically withdrew cash on your credit card. For example, if your credit thẻ is set up for overdraft protection, the overdraft amount will be treated as a cash advance. Wire transfers,money orders, & cryptocurrency purchased with your credit card may also be considered cash advances.  Refer lớn your credit card agreement khổng lồ figure out which transactions may be treated as cash advances.