CASH ADVANCE Meaning and
Definition
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A cash advance refers to a short-term, small-dollar loan made by a financial institution or lender to an individual or business. It is typically used to cover immediate and urgent financial needs. This type of borrowing allows the borrower to obtain a cash sum upfront, which is then repaid with interest and fees over a predetermined period.
The process of acquiring a cash advance usually involves the borrower writing a post-dated check or authorizing an electronic payment for the loan amount plus applicable fees. These payments are often due on the borrower's next payday or within a few weeks. In some cases, lenders may offer cash advances in the form of prepaid debit cards or directly through an online transfer to the borrower's bank account.
Cash advances often include higher interest rates and fees compared to other forms of credit due to their short-term nature and convenience. Borrowers may turn to cash advances when facing unexpected expenses, such as medical bills or car repairs, or during times of financial distress.
While cash advances can provide immediate relief, it is important for borrowers to exercise caution and consider alternative options, as their high costs can lead to a cycle of debt if not managed responsibly. It is advisable to explore other credit options, such as personal loans or credit cards, before resorting to a cash advance.
Top Common Misspellings for CASH ADVANCE *
* The statistics data for these misspellings percentages are collected from over 15,411,110 spell check sessions on www.spellchecker.net from Jan 2010 - Jun 2012.
Other Common Misspellings for CASH ADVANCE
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Etymology of CASH ADVANCE
The word "cash" originated from the Middle French word "caisse", meaning "money box" or "treasury", which later evolved to "casse" in Old Provençal and "cassa" in Italian. In the 16th century, it was adopted into English to refer to money in the form of coins or banknotes.
The word "advance" has its roots in Latin. It comes from the word "advantus", which is the past participle of "advenire", meaning "to come" or "arrive". In English, "advance" refers to moving forward, progressing, or going ahead.
The term "cash advance" combines these two words to describe a financial transaction or service where someone receives a certain amount of money in advance, often in the form of a short-term loan. It refers to the action of obtaining immediate cash before an anticipated payment or without awaiting a regular payday.
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