Manish Shara, Co-founder and CEO, ZET, says, “A cash advance allows cardholders to withdraw cash using their credit card, offering quick access to funds when needed. While it provides instant liquidity, it’s also one of the costliest forms of credit. Unlike regular transactions, there’s no interest-free period, and hefty fees begin to accrue immediately. For many first-time credit users, this distinction isn’t always clear. Strengthening financial awareness around such features is essential to building responsible credit behaviour and long-term financial confidence.”
Furthermore, the withdrawn amount is deducted from your credit limit, but comes with:
A cash advance can be a quick fix, but it should not become a financial habit. One should use it only for genuine emergencies and repay promptly to avoid compounding of interest. For meeting planned expenses, one should proceed with a personal loan or BNPL options after conducting proper due diligence and consulting with a certified financial advisor. These options are more credit-friendly and affordable.
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Disclaimer: Mint has a tie-up with fintechs for providing credit; you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards, and credit scores. Mint does not promote or encourage taking credit, as it comes with risks such as high interest rates and hidden charges. We advise investors to discuss with certified experts before taking any credit.
