Definition
A cash advance is a withdrawal from a revolving credit account.
Analysis
A cash advance may be made from a credit card account up to a special cash advance limit. This is normally smaller than the overall credit limit.
Cash advance withdrawals may be made by using a credit card at an automated teller machine (ATM) using a personal identification number (PIN). Additionally, some credit card issuers will send cash advance checks meant for deposit into a checking account. Regardless of the method of withdrawal, cash advances normally incur a much higher interest rate than either balance transfers and purchases.
A cash advance can also be made from a revolving line of credit. There is only one interest rate charged on a line of credit.
