More and more people are benefitting from credit card cash advances over other financial options. In an economy where getting hold of money couldn't be fast enough, cash advances give the quickest recourse there is. The time needed, in contrast, to get bank loans and overdraft increases look like an eternity to many people.



A credit card cash advance is not any slower to obtain than money dispensed from the ATM. In this view, credit cards can act like ATM cards. While they are largely designed to empower holders to buy commodities on credit, credit cards also allow them to borrow cash.

Any ATM and cash-point machine can easily dispense the cash advance. Otherwise, the bank may choose to mete the money out through checks.

Apart from its utmost accessibility, a cash advance endears itself to people for other, profounder ways. Since it is an expedient source of money, a cash advance can help people weather financial difficulties. Ideally, it should pay for the basics, to wit food, water, electricity, and the rent. It is so immediate a resort it could finance emergency situations, as in paying for taxi fares.

Often, cash advances are only as good as the credit limit of the card. One may only take out a cash advance within a certain range, usually a percentage of the credit limit set by the bank. Other banks even spell out the cash advance limit in currency figures.

It all depends on the kind of card the borrower carries. Titanium, platinum, and gold premium cards typically set the highest credit limits, hence the highest cash advance thresholds. On the other side of the spectrum is the secured card, which requires a deposit to raise its otherwise low credit limit. Unless the consumer has a checkered credit history, most issuers usually offer a regular card, not a security card.

One's cash advance limit reverts upon payment of the arrears?plus the additional charges. Banks have a rationale for the fees: processing cash advances are costlier than purchases on credit. In addition, credit card issuers run the risk of default from cash advancers.

Correspondingly, the annual percentage rates (APR) for cash advances, along with balance transfers, are higher than those for purchases. Some banks peg the cash advance APR to a variable interest percentage, like that of treasury bills. Others fix the APR.

Atop the APR, cash advances may also demand certain charges and fees. Banks are bound by law to divulge the rates, which may be found on the monthly statements and solicitation papers. Fees for the cash advance could either be flat, or a portion of the cash advance.

Surely the cash advancefeature of credit cards has worked wonders for their holders. Yet cash advances are not only the inherent perks of a credit card.

Through one credit card, a consumer can get money-back guarantees on certain purchases, extended warranty on products, frequent flier miles, travel discounts, additional call minutes, and so forth.

For a certain fee, Cash Advance credit card issuers may supplement their services with insurance. This insurance would reimburse credit dues upon death, disability, or unemployment of the holder. Likewise, the issuer often offers insurance in the event the card is stolen or lost.