A cash advance is one wherein one takes a loan against a particular line of credit or a credit card which generates higher than normal interest rate. The interest that is charged on these kinds of loan is of a higher value as the recovery of these loans has a greater danger threshold and risk [...]
A cash advance is one wherein one takes a loan against a particular line of credit or a credit card which generates higher than normal interest rate. The interest that is charged on these kinds of loan is of a higher value as the recovery of these loans has a greater danger threshold and risk factor involved.
The interest is fixed on these kinds of loans and no floating rate of interest is allowed. Also the grace period is minimal or missing. Hence, cash advances turn out to be far more expensive than the normal loans that are on offer in the market. In times of cash crunch and credit at the beck and call of one many people opt for a cash advance on their cards. This is got in terms of actual currency over the counter.
The overall cash advance available depends on the overall credit limit that the person has on his credit card. If you look at your bank statement the next time round you will notice that there are two sets of numbers, the credit limit and the cash advance limit.
Some banks offer you the option of opting for the cash advance at the nearest ATM. Of course the amount that you request must be within the limits that you are entitled to withdraw.
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