What is Cash Finance Charge?

When credit card statement comes, there are many charges and fees charged on it and example is cash finance charge. If you don’t get to know cash finance charge chances are that cost will be higher and the reason behind is that it is cost which have to be paid off immediately and if not it may increases. The charge is a special type of fee for a special type of borrowing, rather than your month-to-month credit purchases.

Here How to reduce or eliminate the cash finance charge.


A cash finance charge is an extra fee brought on by a credit card cash advance, providing the cardholder with immediate funds. Generally, any time a credit card holder uses their card as a debit card, they are issued a finance charge.


Finance charges vary according to the financial institution used to extract the cash, but are generally quite costly. These additional fees taken place after ATM withdrawals with a credit card, due to use of credit card checks, or by transferring funds from a credit card to another financial account.

Time Frame

credit card cash advances occur instantly, cash finance charges begin accumulating immediately after the cash is advanced, eliminating the normal grace period granting credit cardholders a cushion of time before interest rates accrue. Credit card holders are frequently required to pay their account balance before paying down any cash advance fees.


The Experts have caution credit cardholders to avoid cash finance charges if possible, as they usually have high interest rates, and no payment grace period, you have to pay back on time. With such high interest rates, debt will accumulate much more quickly with even a single finance charge. The high fees are added on the already existing fees issued by banks when cash advanced are obtained via ATM machines. Some credit cardholders who regularly use cash advances find themselves giving into the costly habit of ignoring finance charges in exchange for the luxury of having immediate cash on hand.

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