Do Not Mistake a Cash Advance for a Payday Loan

Are you needing a quick cash advance from your credit card?  A cash advance is an instant loan obtained from a credit card account. Credit card issuers charge interest from the date of the advance until it is repaid, and may also charge a transaction fee based on the amount of the advance.  Cash advances basically use your available balance on your credit card for you to receive cold hard cash. 

Cash advances will often incur a higher interest rate than a normal credit card purchase; and as mentioned above, often the issuing creditor will charge interest from day one through the payoff of the cash advance.  So be careful when taking cash advances.  Know the rules of cash advances through your credit card issuer before taking a cash advance.

Even with the higher interest rates and initial transaction fees, there are still good uses for cash advances.  For instance, say you are vacationing in Mexico and you want to buy some merchandise from a street vendor who does not accept credit cards.  You can visit a local bank, find an ATM, or go to a currency conversion location and generally use your credit card for a cash advance.  You will then have the needed cash for the goods you look to acquire.  Just make sure you plan to pay off your cash advance when returning from your vacation to reduce the amount of interest you will pay back for the cash advance.

Some online companies also refer to Payday Loans as Cash Advance Loans.  If you are interested in a Payday Loan instead of a cash advance, visit our Payday Loan link to the right.  Also, if you have any cash advance stories, experiences, or opinions to share, use our Cash Advance Message Boards.