What does a Cash Advance allow a cardholder to do?

A Cash Advance allows a cardholder to obtain cash from a cash dispenser or bank teller. This function is a key benefit associated with credit cards, enabling users to access cash when needed. When a cardholder uses their credit card for a cash advance, they're essentially borrowing funds directly against their credit limit, which they can then use to cover immediate cash needs.

Obtaining cash in this manner typically involves using an ATM or visiting a bank teller, making it a straightforward approach for accessing money on the go, even though it often incurs fees and higher interest rates compared to regular purchases. Understanding this option is important for cardholders as it provides flexibility but also comes with considerations regarding costs and repayment obligations.