InvestorQ : What is a credit card’s cash advance facility?
Kunal Verma made post

What is a credit card’s cash advance facility?

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Nitin Shah answered.
2 years ago
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Cash advance facility of a credit card is the service banks provide their customer allowing their cardholders to withdraw cash either through an ATM or over the counter at a bank.

One must take cash advance only when he/she is in dire need of cash and is left with no alternative. A credit cash advance acts as a loan, but you don’t need to apply for the said loan. Do note, however, that banks usually have a limit to how much cash advance can be withdrawn.

Additionally, banks also charge very high interest rates for taking cash through this service and hence, it is best avoided.

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