What is a cash advance APR?

A cash advance APR is the annual percentage rate, or APR, associated with taking a cash advance on a credit card. It is usually much higher than the standard purchase APR. This is because lenders view cash advances as a higher risk form of borrowing since it can be easy for borrowers to get over their heads in debt. In California, the cash advance APR must be disclosed by the lender at or before the time the card is issued. This APR must be disclosed on the bill that the borrower receives from the lender. The borrower is also informed of the current cash advance APR applicable to the account each time they request a cash advance. The cash advance APR differs from the standard purchase APR in that it is much higher, ranging from 20% to 30% or more. Also, it is a fixed rate, meaning that the rate does not change during the course of the loan. A cash advance is also usually subject to additional fees, such as a transaction fee, and limits on how much can be borrowed each time. In California, credit card companies cannot increase the cash advance APR during the course of the loan, and must provide a grace period of at least 21 days before any interest charges begin to accrue on the balance. Also, credit card companies must include an annual statement of the cash advance APR along with the regular account statements.

Related FAQs

How do I dispute a charge on my credit card statement?
What are the benefits of having a credit card?
What is a late payment fee?
Do I need to provide personal information to get a credit card?
How does a balance transfer work?
What are the side effects of using a credit card?
What is the maximum credit limit I can have?
What is the minimum monthly payment on a credit card?
What is theCard Act of 2009?
How do I dispute unauthorized charges on my credit card?

What is a cash advance APR?

Related FAQs

Related Blog Posts