Cash Advance Definition

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In a simple word, cash in advance is a short term loan that a borrower takes against a credit card up to a specific limit. Unlike a simple purchase that we make with a credit card, a borrower applies for a loan in a form of cash.

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If you need, you just need to go to an ATM or a bank and withdraw cash there. Not every bank allows borrowers to turn the whole credit limit into cash advance loan. Some credit cards allow withdrawing up to two hundred dollars and it’s not always enough. Cash advance online can become a reasonable alternative to simple loans then.

Many online services offer online cash advance. This is the same short term loan that a borrower has to pay off until the negotiated date. This option allows borrowing bigger amount and, probably, facing more flexible conditions.

Usually, credit card companies charge a fee for borrowing cash advance, borrowing with ATM, or offer higher interest on such credit cards. Online companies that offer cash advance loans don’t provide borrowers with cash itself. In such cases, we speak about a short-term loan with a very fast approval and relatively small amount (so a borrower can pay it off in one or two payments).

These loans are similar to simple payday loans but they aren’t related to the payday.

P.S.: Find out 10 ideas for a quick cash.