I am researching credit card information and they keep referring to a 'cash advance'. When I look it up it says: A loan taken out against a line of credit or credit card, typically imposing higher-than-normal interest charges… but I have no idea what a loan taken out 'against a line of credit' means.
Can anyone simplify this for me and explain it?
I'm applying for a credit card and it is asking me if I'm planning to use the card for cash advances. What is it means?
ladyragland619 says: thats when you get money now and pay it back when you get you check;)
Matt says: cash advance is when you get money before your paycheck.
Age of Reason says: You can have the credit card company give you cash. But this is very expensive. Usually 3% upfront and 30% till paid in full.
Cotton C says: baaaaad news is what it is.
BEN S says: A cash advance is when you use your card to borrow cash against it instead of using it to make a purchase. The credit card company will let you take the cash out at an ATM or at a bank teller. The cash advance usually will cost a transaction fee at either a flat rate or a percentage of the total transaction on both ends. It also usually involves a much higher interest rate.
candy apple says: Are you serious? you have to ask here. What it means is you are borrowing capital presently for a future repayment when the funds become available to you. Be aware they do not do that for free. There are or could be fees and interest of large proportions attached to the agreement. Please be carefull. Good Luck
alcan52 says: You can use your credit card in 2 ways. You can make purchases in stores etc or take a cash withdraw on the card from an ATM or a teller at a bank. Its never good use your credit card to receive cash. A cash advance has massive fees for that type of transaction. I never use cash advances. They are too expensive. Don't do them. Its good in a dire emergency but other then that dont do it.
Sherly says: you can find it in tools on this website
Captain Refrigerant says: Cash advances off a credit card is where you get greenbacks in the hand. Purchases or services gives you just the products or services.
Beware of cash advances, the credit card will bill you differentially. You could be charged fees for the initial advance, plus additional interest on unpaid balances of a cash advance, depending on what bank is issuing you the card.
The CC company gets upward to 7% right off the top of any purchase you make. So if you buy $100 at the store, the CC gets 7 dollars from the store. That percentage varies on other parameters as well, like volume use at the retailer such as Walmart.
So, if the CC can not make the 7% off a cash advance from the retailer, they have to get you with a borrowing fee. I fell into that trap once, and they hit me hard on the advances each month with extra interest. as I paid it down, the advances were the last thing they allowed my payments to go to…. increasing their money squeezing out of me.
Beware… Be very aware of what they will charge you. Advice to you, do not use it.
.
Cathy says: hi
If you looking for a legitimate cash advance loans upto $1000 in 1 Hour .once approved your loan will be transferred directly to your checking account promptly, and securely. Now you'll be able to use the cash for all your necessities.
• 100% secure and processing
• No faxing -No credit check
• Immediate online approval
• Excellent customer service
• Get Cash in Minutes!
Good luck
dora the explorer
When you use your credit card with a PIN # at an ATM to withdraw cash.
Okay a cash advcance is somthing were people BARROW money from! The most you can borrow is $800 dollars and you have to pay it back within the next 30 days. If you dont then you get sued. This is how alot of people get into debt. Why do you ask?
It means you can draw cash out from the cashpoint that is not yours, but you will pay a lot more back in interest. If you want to use that option.
when your awarded a credit card they tell you what your limit is, usually a credit line and a cash credit line, this is the max you can use that card for, a cash advance is taken out up to the amount of the cash credit line. Then you have to pay back however much you had advanced but at a relatively high interest rate
is credit card.. – bank pay for your stuff 1st and upay backthe bank later.( cash advance)
Since you were researching credit card information, the cash advance they are referring to is if you use your card (at a bank, atm machine, etc.) to obtain cash rather than in the usual manner of making a purchase. This generally carries a fee as well as an inflated interest rate.
it pretty much means that you are taking out cash on the available balance on your credit card or line of credit. Let's say you have a credit card and you have a 500 dollar limit. you get a cash advance of a 100 dollars, you get these funds in cash and therefore the credit lending company will charge you a higher interest for w/drawing the cash instead of using it for a purchase. You now have 400 dollars available to spend. I hope this helps
Yes you are correct it is a cash loan against the credit line of the card and yes normaly at a higher rate and from the DAY you take it not the next billing cycle.
The way I understand it, that is money that you take out of a ATM with your credit card.
Also the credit card company occasionally sends you a blank check that you can use for anything. This money of course comes out of your line of credit. There is an interest charge on these checks.
Example: You have a credit card with a $5,000 dollar limit. You make purchases with it. You need some cash and you BORROW the money from the Credit card. That is making a cash advance. T/he difference between the cash advance and making regular purchases with the card is…. the cash advance has a higher percentage rate because the bank is giving you money personally, instead of paying for the purchase you made. With this being said, these "payday loans" or "check into cash" franchises tend to be a little more unscrupulous. They will charge a rediculous high percentage return for borrowing money. Often at times for 1/2 the amount you owe, so you are better offmaking cash advances with your regular banking institution. If you have a credit card with them, they tend to be more lack in the higher percentage rates. Read the fine print though and make sure that you ar able to pay back what you owe. I hope this helps
It is a short term loan based on your next pay check. You go to a company or on the net, apply for a short term HIGH INTERST loan and are expected to pay it back on your next pay day
In simple terms cash advance on a credit card is like using the credit card as a debit card to withdraw cash. But you arewithdrawingraing form your bank account. You are withdrawing the cash from the credit card company. So ifdecideeicde to get cash from your credit card you will have to pay higher interest on it. The terms to return the money is very strict and depending oncrediteadit companympany they can charge different fees. There is a Smallsamll credit line for cash advance mostly few hundred doldependingdning on what is your credit limit. This is a very attractive way to customersomers ispeciallyaYoungyougn kids who live pay check to pay check. So when you run out of your money before you et paid next time,crediteadit card company will allow you to take the cash advance out to be used for your petty cash needs. I HIGHLY RECOMMEND not to use advancesnaces, it cost a lot to do so.
Hope it helps. Good luck!!!