Cash advance is one of the basic functions of a credit card. The so-called cash advance is to convert the credit limit of the credit card into a deposit account. Small cash loans can be provided, and cardholders can obtain funds without pre-deposit. According to the processing channels, they can be divided into cash withdrawals and overdraft transfers. So, how to use the cash advance function of a credit card?

1. There are many restrictions on overdraft withdrawals: Credit card overdraft withdrawals generally do not exceed 50% of the credit limit (for cash withdrawals, cash transfers, cash installments**), and do not exceed the current available limit of the card. The amount of cash withdrawals is also limited upper limit. When withdrawing cash through the UnionPay network in China, the cumulative daily cash withdrawal amount per card through counter channels and self-service machine (such as ATM) channels shall not exceed 30,000 yuan. The daily overdraft cash withdrawal limit for each card through counter channels is 20,000 yuan. The card's daily overdraft cash withdrawal limit is 10,000 yuan.

2. Cash advances do not enjoy the minimum repayment amount: credit card overdraft transfers and overdraft cash withdrawals cannot be repaid according to the minimum repayment amount and need to be paid off in one go before the specified repayment date. At the same time, the business expenses of cash advance also include handling fees and interest. In terms of handling fees, each bank has different standards for cash withdrawals. In terms of interest, interest-free repayment is not available from the day of application to the date of settlement.

3. Usually, the cumulative cash advance limit of a bank shall not exceed 50% of the total credit limit. However, it is not easy to borrow money from banks. There are many restrictions on the amount and repayment of cash withdrawals and overdraft transfers. Cardholders need to pay extra attention to avoid overdue situations.