We all once in a while run into a situation where we urgently need cash. Well, for some reason the sum we had to live on did not last us, we have some unexpected expenses, you name it. And banks and other financial institutions offer us a good way out: so called cash advance loans. Some experts don't even call them loans. To the range of such loans (or not loans if you please) belong college loans and student loans as well. But for those, who have never taken such loans, let's give a definition what it's all about.

A so-called cash advance is a service provided by most credit card and charge card issuers. The service allows cardholders to withdraw cash
, either through an ATM or over the counter at a bank or other financial agency, up to a certain limit. For a credit card, this will be the credit limit (or some percentage of
it).

Cash advances generally incur a fee (to replace the interchange fee normally charged to the merchant on a card transaction), although this is sometimes waived if the account is in credit. When made on a credit card, they are usually charged at a higher rate of interest than store purchases, and generally do not attract an interest-free period which is customarily given to cardholders who pay off their bill in full every month.

Under card scheme rules, a credit card holder presenting an accepted form of identification must be issued a cash advance over the counter at any bank which issues that type of credit card, even if the cardholder cannot give his or her PIN.