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Home>Glossary>Cash advance

Cash advance

Cards & borrowing
Withdrawing cash using a credit card, usually with fees and higher interest.

Overview

Cash advances often have no interest-free period and can be expensive.

They can increase utilisation and costs quickly.

Why it matters

  • Fees and interest are often higher than purchases.
  • It can increase your credit cost fast.
  • It can affect your credit profile if balances rise.

FAQs

Is a cash advance bad for my credit score?

The advance itself does not, but higher balances can increase utilisation.

Are cash advances charged interest immediately?

Usually yes. Most cards do not offer interest-free periods on cash.

Related terms

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