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Banks also often have a wide range of loan products to choose from, so the credit borrower can find a loan that meets their specific needs. Cardholders should also be aware that using a cash advance on a credit card can be a sign of financial distress, which can impact their credit score and their ability to borrow money in the bad future.
Credit card cash advances typically have a higher interest rate than regular credit card purchases, and some credit card issuers also charge a fee for cash advances. Some traditional loans have strict rules about credit scores or needing collateral (like a car or house).