A cash advance is short-term cash borrowed against a credit line or future income, such as a credit card cash advance or a storefront advance. It usually carries a fee, and on a credit card interest often begins accruing immediately with no grace period.
A cash advance is money drawn against an existing source of credit or expected income. A credit card cash advance lets a cardholder withdraw cash against the card's credit line, commonly with a separate fee and an interest rate that may differ from the purchase rate, and interest typically starts accruing immediately rather than after a grace period. Other forms include merchant or storefront advances, which are frequently structured as a single-payment advance against a paycheck. A cash advance is distinct from an installment loan, which provides a set amount up front and a fixed schedule of payments. Terms, fees, and limits vary by the card issuer or provider.
