What is a credit card cash advance? What is the difference between it and arbitrage? This article analyzes cash advance and cash out in detail, I hope it will be helpful to everyone.

Credit card cash advance (referred to as cash advance) refers to the cardholder using the credit limit to overdraft to withdraw cash. Overdraft interest will be charged on cash advances from the bank accounting date. The credit card cash advance limit refers to the maximum amount that a cardholder can withdraw cash through a self-service terminal such as an ATM using a credit card.

Credit card cash withdrawal is different from credit card cash withdrawal. Credit card cash withdrawal is one of the inherent functions of the credit card itself. Cardholders can use the credit card to withdraw cash from the bank. Credit card cash withdrawal mainly includes two methods: overdraft cash withdrawal and overpayment cash withdrawal. .

The difference between the two is:

1. When using a credit card to withdraw cash, the limit will be limited. The cash withdrawal limit of most credit cards is 30% to 50% of the overall credit card limit, and there is a limit to the amount of cash that can be withdrawn in a single day.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 biggest difference is the difference in borrowing amount. The borrowing limit of a cash advance loan 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 to the credit limit, which is equivalent to 100% of the original credit limit. Of course, since the limit can be temporarily increased, banks will 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 a credit card cash withdrawal, the bank will charge interest at a daily interest rate of 0.05%; and after a credit card cash advance, the cardholder only needs to pay an installment handling fee, which is similar to the installment handling fee for credit card installment shopping business.

4. The application process for cash advance business is similar to that of getting a loan from a bank, 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.

Use the interest-free period wisely to keep your card stress-free?

Every credit card has an interest-free period. How can we make good use of it to reduce the stress of repaying the card?

Step 1 (50 days interest-free): It is very simple to try to control the consumption date within a few days after the reconciliation date. For example, if the reconciliation day is the 5th of each month, then we will try to make purchases on the 6th of each month and the days after.

Step 2 (70 days interest-free): Continuing with the above example, I want to apply to change the credit card statement date from the 5th of every month to every day between September 26 and October 4. January 25th. In this way, the bank will issue a bill on October 25th and require the customer to repay the loan on November 15th.

Step 3 (100 days interest-free): Continuing with the above example, after the bill is issued on October 25 and before the payment is made on November 15, we will apply to the bank for installment payment of the bill. In this way, our transaction on September 6th will be delayed until November 25th, so as usual, our repayment date will be changed to December 15th.