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Finance & Banking vocabulary · Payments & Cards

Cash advance

Meaning in finance & banking, with examples

nounCommon term

In finance & banking, cash advance means: Cash taken from a credit card account, for example at an ATM. It is borrowed money and usually costs more than a normal card purchase.

In Turkish: nakit avans

How it is used

Used on card statements, in fee tables and in customer complaints. Customers take a cash advance up to a separate cash limit. It normally carries a fee and interest from the day of withdrawal, with no interest-free period. Some banks also offer cash advances repaid in instalments.

Example sentences

  1. A cash advance on your credit card starts to accrue interest immediately.

  2. He took a cash advance to cover an unexpected repair bill.

Common collocations

  • cash advance limit
  • cash advance fee
  • take a cash advance
  • instalment cash advance
  • credit cardA plastic or digital card that lets you buy now and pay the bank later. You can spend up to a limit and pay interest if you do not repay the full amount on time.
  • credit limitThe maximum amount a bank allows a customer to borrow on a credit card or a credit line.
  • ATMShort for automated teller machine: a machine where customers use a card or phone to withdraw or deposit cash and do other banking without staff.
  • APRShort for annual percentage rate: the yearly cost of a loan or credit card shown as a percentage, including interest and certain required fees.
  • accrueTo build up gradually over time, as interest does on a loan or deposit; in accounting, to record income or costs when they are earned or incurred, not when cash moves.

More terms: Payments & Cards

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This page explains English vocabulary for learners. It is not financial advice.