Americans haven't been the best at managing finances, with the average American household credit card debt being $15,863. If you need money immediately to get out of a difficult situation, you may be able to get a cash advance from a bank or a financial institution without having to send in an application for approval. A cash advance is basically a cash loan against your credit line. Most banks and financial institutions offering cash advances will offer a grace period for repayments. By paying within the grace period, you can avoid paying interest on the money borrowed.

The Fundamentals of the Grace Period

While not all companies and institutions offer a grace period, many do if the borrower holds an account or is using other services from the institution. But the length of time within a grace period will vary. During this time, the borrower will not be charged any interest on the loan borrowed if the loan is paid back in full.

If you are planning on taking out a cash advance, it might be worthwhile to see whether you can find a lender willing to offer you a grace period. If you have the ability to pay back the loan in full before the grace period, you could potentially save yourself a significant chunk of money. If you cannot pay back the loan in full during the grace period, the loan will start to accumulate interest from that time on until the loan has been fully repaid.

The grace period only waives any interest that would have accumulated for the loan. Even if you repay the loan within the grace period, you are still responsible for paying any transaction fees or processing fees incurred from the loan.

Getting Back Into the Grace Period

Once the grace period for a certain loan has passed, you need to determine how you can get back into the grace period for future loans, even if the initial loan has been fully paid. Some financial institutions may require you to pay your balance in full for several months consecutively before any additional loans are granted a grace period again.


Read the terms and conditions carefully before apply cash advances so you know just what to expect. Naturally, the best way to save money is to pay back the cash advance in full before the grace period ends; however, if this is not practical or feasible, put down as much money as you can on paying back the loan. This will keep the amount of interest that you'll have to pay relatively low. You can also talk with cash advance professionals or representatives, like those from The Money Place, for more information.