---
title: "Cash advance: definition | Desert Rock Capital"
url: "https://www.desertrockcapital.com/glossary/cash-advance"
description: "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."
---

Loan types

# Cash advance
All lending terms
Definition

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.

Source: [Consumer Financial Protection Bureau](https://www.consumerfinance.gov/ask-cfpb/can-i-withdraw-money-from-my-credit-card-at-an-atm-en-34/). This definition is general educational information, not legal or financial advice.
Related

- [Compare: vs. a cash advance](/compare/cash-advance)
- [Personal loans](/services/personal-loans)
- [Payday loan alternatives](/compare/payday-loan)
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