...Credit

Common queries on credit accounts

As well as purchasing goods and services using credit, a client can use their credit card to access cash. Clients are often unaware that a cash advance has different conditions.

Some institutions charge interest on a cash advance as soon as it is drawn. Therefore the amount drawn has no interest-free days and an interest charge appears on the very next statement.

For most institutions, if a monthly balance includes a cash advance and it is not paid in full at the end of the billing cycle, the interest continues to accrue from that point and there are no interest-free days again until the debt is totally cleared.