1. What is Citibank Cash Advance?

A Citibank cash advance allows you to withdraw cash using your credit card. This service comes with specific fees and interest rates that are typically higher than regular credit card purchases.

2. How Does the Calculator Work?

The calculator uses the Citibank cash advance formula:

Where:

• \( Advance \) — Cash advance amount in dollars
• \( Rate \) — Annual percentage rate (APR)
• \( Fee \) — Cash advance fee (typically a percentage of the advance or a minimum fixed amount)

Explanation: The formula calculates the monthly interest cost by taking the monthly interest rate (APR divided by 12) applied to the advance amount, plus any additional fees.

3. Understanding Cash Advance Costs

Details: Cash advances typically have higher interest rates than regular purchases, and interest begins accruing immediately without a grace period. There's usually a fee (often 3-5% of the advance amount) with a minimum charge.

4. Using the Calculator

Tips: Enter the cash advance amount in dollars, the annual percentage rate (APR), and any cash advance fee. All values must be valid positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How is cash advance interest different from purchase interest?
A: Cash advances typically have higher APRs, no grace period, and interest starts accruing immediately from the transaction date.

Q2: What is the typical cash advance fee?
A: Most banks charge 3-5% of the advance amount with a minimum fee (often $10-15).

Q3: Are there daily limits on cash advances?
A: Yes, most credit cards have daily cash advance limits that are lower than your total credit limit.

Q4: Does a cash advance affect my credit score?
A: While not directly damaging, high cash advances can increase your credit utilization ratio, which may negatively impact your score.

Q5: Can I pay off a cash advance immediately?
A: Yes, but you'll still need to pay any fees, and interest may have already accrued depending on when you make the payment.