Cash Advance
A loan taken out against a line of credit or credit card, typically imposing higher-than-normal interest charges.
Investopedia Commentary
Often the interest charged on these loans is a fixed number of percentage points above the prime rate. Additionally, there is seldom a grace period in which no interest is charged. These two factors make cash advances more expensive than many other types of debt financing.
Related Links
The Importance of Your Credit Rating
See also: Credit, Credit Card, Interest, Line of Credit, Loan, Open End Credit, Revolving Credit