For example, if your credit card limit is $5,000 and your card’s cash advance limit is 30%, the maximum cash advance would be $1,500. The maximum amount you can get on a cash advance is usually a percentage of your credit card’s total limit. And unlike regular credit card purchases, credit card cash advances start incurring interest on the withdrawn amount as soon as you take the money out. It’s similar to withdrawing cash from an ATM with your debit card, except you’re borrowing money against your credit card’s line of credit rather than your bank account balance.Ĭash advances come with higher interest rates and fees than regular credit card purchases.
A cash advance is a short-term loan you borrow using your credit card.
