What are cash advance credit cards?

With the introduction of cash advance credit cards, the card holders get an opportunity to withdraw cash from their current balance. Most often, the maximum amount of money that can be withdrawn using this option is only a limited percentage of overall line of credit. The banks usually provide two limits in the statements: one is the credit limit and the other is the cash advance limit. Most of the electronic banking machines provide the option of cash advance to the credit card users. To receive cash advance, you just have to use your credit card at the ATM.  Money can be withdrawn in a jiffy as long as the amount requested is within the cash advance limit.

Sometimes, the ATM may offer the cash even if the amount requested exceeds cash advance limit. In such cases, it will signal the exchange as unauthorized cash advance. This situation will be handled just like how the purchase over credit limit would be handled. Though most of the payments can be made using credit or debit cards nowadays, some services still demand cash payments. Personal loans may be very expensive if the amount required is too small. Hence, withdrawing cash using the cash advance option from the credit card balance is the best option for such emergencies.