What is a cash advance?

A cash advance is a type of credit card transaction where you borrow money against your credit limit in exchange for a fee. With a cash advance, you can borrow cash from a participating institution such as a bank or ATM. These advances are usually secured by an existing credit line on a credit card. In Texas, the relevant laws regulating cash advances are found in the Texas Finance Code, Chapter 342. Generally, cash advances are subject to the same terms and conditions as regular credit card transactions, including interest rates, fees, and repayment terms. The most common cash advance fee is a flat fee that covers the cost of borrowing the money. Additionally, the lender may charge an additional fee and interest rate. The amount of interest that you must pay can vary depending on your credit history but often ranges between 20-30%. When taking a cash advance, it is important to remember that the money you borrow is not free. Interest and fees can quickly add up and you will need to pay them back in a timely manner. Additionally, cash advances can lead to higher overall interest charges and can negatively affect your credit score if not paid off in a timely fashion.

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What is a cash advance?

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