Cash Advance

A cash advance is literally a credit card issuer advancing funds to a cardholder. Most commonly conducted through an automated teller (ATM), a cash advance is a type of loan against the customer’s line of credit.

While they can be useful and convenient for the account holder, it should be noted that cash advances usually come with higher fees and interest rates than other transactions. Unlike regular card purchases, cash advances almost always come with a per-use fee, typically 3-5% of the requested amount.

They also don’t come with a grace period, meaning that  interest starts the minute the cash advance is dispensed. While most modern advances go through an ATM, it’s also possible to get one in person at the bank, or by writing a convenience check sent by the issuer for this purpose.