The difference between credit card cash advance and ordinary cash withdrawal:

1. When using a credit card to withdraw cash, the limit will be limited: the cash withdrawal limit of most credit cards is 30~ of the overall limit of the credit card 50, and there is a limit on the amount of cash that can be withdrawn in a single day. Most banks have a daily upper limit of 2,000 yuan for credit card cash withdrawals. If a customer wants to withdraw a large amount of money, they have to withdraw it slowly day by day. This is definitely not feasible for customers with temporary large capital needs.

2. The borrowing limit is different: the borrowing limit for cash advance is close to 100 of the credit limit. Some banks will temporarily increase the limit for the cardholder, and then lend a certain proportion of cash in advance to the cardholder. , equivalent to 100 of the original credit limit. Banks only provide this service to customers with very good credit records.

3. Another advantage of cash advance business is "interest-free" and "interest-free": after cash withdrawal by credit card, the bank will charge interest at a daily interest rate of 0.05%; while cash advance by credit card After that, the cardholder only needs to pay the installment fee, which is similar to the installment fee for credit card installment shopping business.

4. The application process for cash advance business is similar to that of a bank loan, but no mortgage is required. As long as the cardholder's revolving credit status is good and there are no abnormalities in the account, they can generally apply.

Although you can use a credit card to withdraw cash, please do not use the cash advance function in non-emergency situations because the cost of using a credit card cash advance function is very high. First of all, there is no interest-free repayment period when using a credit card to borrow cash in advance, and interest starts to be calculated from the day you withdraw the cash. Second, the interest on cash advances is very high, with a daily interest rate of 0.05% and compound interest! Third, the handling fee is very high. The handling fee is generally more than 1 and is charged in one go. In addition, there are generally no bonus points for cash advances.

In addition to these, there are limits on the amount of cash advances. For most banks, the amount of cash advances is about 50% of the credit limit.

To summarize: Use the cash advance function of your credit card with caution. Once you use it, be sure to repay it as soon as possible to avoid paying high interest.

Reference: Cash Advance - Baidu Encyclopedia