Why do credit cards get a cash advance on them and debit cards do not?
Question:
Answer:
That's the whole idea of credit. Debit means, TAKE from what is in the account.
it's your money not theirs
credit cards are just that, credit. so you spend until you reach your limit. debit cards draw money from your account that you already have, so you can't advance on them.
peace bro
think of credit cards as a loan. that cash advance is a loan you are paying interest on. debit cards immediately debit from your account, and you do not need loan (ie: credit) approval on those.
Debit cards deduct money from your existing account. With a debit card, you have the option of getting YOUR cash or making a purchase.
With a credit card, you borrow cash at a very high interest rate. The interest accrues until you pay off all of your purchases. Once they are paid off, then your credit card payments are applied to the cash advance.
every time you take money out at an atm with the debit card is a cash advance
A credit card has a line of credit attached to them. A debit card is linked to your checking account and unless you also have a line of credit attached to the checking account you can only withdraw what you have in the bank. With a credit card, you can withdraw on that line of credit. A debit card doesn't have one.
Cash advances are the worst thing you can do with your credit card. It goes for an even higher rate than purchases and is the last thing paid off you make a payment. Unless you pay off in full every month, avoid them.
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