{"id":2854,"date":"2025-05-27T20:36:04","date_gmt":"2025-05-27T23:36:04","guid":{"rendered":"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/?p=2854"},"modified":"2025-05-27T20:36:04","modified_gmt":"2025-05-27T23:36:04","slug":"what-is-a-cash-advance-on-a-credit-card","status":"publish","type":"post","link":"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/","title":{"rendered":"What is a cash advance on a credit card?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_74 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Content<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#Understanding_Mortgage-Backed_Securities_MBS_A_Comprehensive_Glossary_Article\" >Understanding Mortgage-Backed Securities (MBS): A Comprehensive Glossary Article<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#What_Are_Mortgage-Backed_Securities\" >What Are Mortgage-Backed Securities?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#How_Do_Mortgage-Backed_Securities_Work\" >How Do Mortgage-Backed Securities Work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#Types_of_Mortgage-Backed_Securities\" >Types of Mortgage-Backed Securities<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#Agency_Mortgage-Backed_Securities\" >Agency Mortgage-Backed Securities<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#Non-Agency_Mortgage-Backed_Securities\" >Non-Agency Mortgage-Backed Securities<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#Common_Terms_Related_to_Mortgage-Backed_Securities\" >Common Terms Related to Mortgage-Backed Securities<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#How_Mortgage-Backed_Securities_Affect_the_Housing_Market_and_Economy\" >How Mortgage-Backed Securities Affect the Housing Market and Economy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#What_Are_the_Risks_of_Investing_in_Mortgage-Backed_Securities\" >What Are the Risks of Investing in Mortgage-Backed Securities?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#Prepayment_Risk\" >Prepayment Risk<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#Credit_Risk\" >Credit Risk<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#Interest_Rate_Risk\" >Interest Rate Risk<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#Market_and_Liquidity_Risk\" >Market and Liquidity Risk<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#Who_Invests_in_Mortgage-Backed_Securities\" >Who Invests in Mortgage-Backed Securities?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#Regulation_and_Oversight_of_Mortgage-Backed_Securities\" >Regulation and Oversight of Mortgage-Backed Securities<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#How_to_Evaluate_Mortgage-Backed_Securities\" >How to Evaluate Mortgage-Backed Securities<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#Why_Understanding_Mortgage-Backed_Securities_Matters\" >Why Understanding Mortgage-Backed Securities Matters<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#Related_Articles\" >Related Articles<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#Our_Categories\" >Our Categories:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#What_is_a_Cash_Advance_on_a_Credit_Card\" >What is a Cash Advance on a Credit Card?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#Frequently_Asked_Questions_About_Cash_Advances_on_Credit_Cards\" >Frequently Asked Questions About Cash Advances on Credit Cards<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#What_exactly_is_a_cash_advance_on_a_credit_card\" >What exactly is a cash advance on a credit card?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#Can_I_get_a_cash_advance_from_any_credit_card\" >Can I get a cash advance from any credit card?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#How_much_can_I_withdraw_as_a_cash_advance\" >How much can I withdraw as a cash advance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#Are_there_fees_associated_with_cash_advances\" >Are there fees associated with cash advances?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#Do_cash_advances_have_different_interest_rates\" >Do cash advances have different interest rates?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#Is_there_a_grace_period_on_cash_advances\" >Is there a grace period on cash advances?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#Can_I_use_a_cash_advance_to_pay_bills\" >Can I use a cash advance to pay bills?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#Are_cash_advances_reported_to_credit_bureaus\" >Are cash advances reported to credit bureaus?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#How_quickly_do_cash_advance_fees_and_interest_add_up\" >How quickly do cash advance fees and interest add up?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#Can_I_avoid_cash_advance_fees\" >Can I avoid cash advance fees?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#Are_cash_advances_a_good_idea_for_emergencies\" >Are cash advances a good idea for emergencies?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#Can_I_get_a_cash_advance_online\" >Can I get a cash advance online?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#Will_a_cash_advance_affect_my_credit_score\" >Will a cash advance affect my credit score?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-35\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#How_can_I_check_my_cash_advance_balance\" >How can I check my cash advance balance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-36\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#Is_there_a_better_alternative_to_cash_advances\" >Is there a better alternative to cash advances?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-37\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#Conclusion\" >Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-38\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2854\/#Also_discover\" >Also discover<\/a><\/li><\/ul><\/nav><\/div>\n<p><strong>What is a cash advance on a credit card?<\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Understanding_Mortgage-Backed_Securities_MBS_A_Comprehensive_Glossary_Article\"><\/span>Understanding Mortgage-Backed Securities (MBS): A Comprehensive Glossary Article<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Mortgage-Backed Securities, often abbreviated as <strong>MBS<\/strong>, play a crucial role in the American financial market, particularly within the real estate and investment sectors. Whether you\u2019re an investor, a homeowner, or simply interested in finance, understanding what mortgage-backed securities are, how they work, and their impact on the economy can provide valuable insight. This article will break down the essentials of <em>mortgage-backed securities<\/em>, dispel common misconceptions, and answer the typical questions people search for related to this topic.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_Are_Mortgage-Backed_Securities\"><\/span>What Are Mortgage-Backed Securities?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Mortgage-backed securities<\/strong> are a type of asset-backed security that is backed by a collection, or pool, of home loans. These loans are grouped together and sold as a single investment product. By pooling numerous mortgages and selling shares to investors, lenders can replenish their funds to issue more loans, creating a cycle that helps keep credit flowing in the housing market.<\/p>\n<p>In essence, investors who buy mortgage-backed securities receive periodic payments derived from the mortgage payments made by homeowners whose loans are included in the pool.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_Do_Mortgage-Backed_Securities_Work\"><\/span>How Do Mortgage-Backed Securities Work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To understand how <strong>MBS<\/strong> operate, it\u2019s important to know the typical lifecycle of a mortgage and how it transforms into a security:<\/p>\n<ul>\n<li><strong>Origination:<\/strong> A homebuyer takes out a mortgage loan from a bank or mortgage lender.<\/li>\n<li><strong>Pooling:<\/strong> The lender sells many of these individual loans to a government agency, investment bank, or other financial institutions, which pool them together.<\/li>\n<li><strong>Securitization:<\/strong> The pool of mortgages is then packaged into securities and sold to investors in the capital markets.<\/li>\n<li><strong>Payments:<\/strong> As homeowners make their monthly mortgage payments, a portion of that money flows through to investors as interest and principal payments.<\/li>\n<\/ul>\n<p>This process benefits multiple parties: lenders get capital to issue new loans, investors earn returns, and borrowers get access to financing for home purchases.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Types_of_Mortgage-Backed_Securities\"><\/span>Types of Mortgage-Backed Securities<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>There are several types of mortgage-backed securities, each with unique features and varying levels of risk and return.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Agency_Mortgage-Backed_Securities\"><\/span>Agency Mortgage-Backed Securities<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>These MBS are issued or guaranteed by government-sponsored enterprises (GSEs) like <strong>Fannie Mae<\/strong>, <strong>Freddie Mac<\/strong>, or by a government agency like the <strong>Government National Mortgage Association<\/strong> (Ginnie Mae). Because of the backing, these securities are generally considered to have lower credit risk.<\/p>\n<ul>\n<li><strong>Fannie Mae and Freddie Mac MBS:<\/strong> Securities backed by pools of mortgages conforming to their underwriting standards but do not carry a government guarantee.<\/li>\n<li><strong>Ginnie Mae MBS:<\/strong> These securities are backed by federally insured or guaranteed loans and carry the full faith and credit guarantee of the U.S. government.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Non-Agency_Mortgage-Backed_Securities\"><\/span>Non-Agency Mortgage-Backed Securities<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Also known as private-label MBS, these are issued by private financial institutions and are not backed by government agencies or guarantees, leading to higher default risk but often higher returns. They include loans that might not meet the strict criteria of agency MBS, such as subprime loans.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Common_Terms_Related_to_Mortgage-Backed_Securities\"><\/span>Common Terms Related to Mortgage-Backed Securities<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Understanding mortgage-backed securities requires familiarity with several related finance terms:<\/p>\n<ul>\n<li><strong>Prepayment Risk:<\/strong> The risk that homeowners will pay off their mortgages early, which can disrupt the expected cash flow to investors.<\/li>\n<li><strong>Credit Risk:<\/strong> The chance that homeowners will default on their mortgage payments, reducing the value of the MBS.<\/li>\n<li><strong>Tranches:<\/strong> Different slices of an MBS deal that have varying levels of risk and return, often structured so that senior tranches have priority on payments.<\/li>\n<li><strong>Pass-Through Securities:<\/strong> MBS that pass the mortgage payments directly to investors.<\/li>\n<li><strong>Collateralized Mortgage Obligations (CMOs):<\/strong> Complex MBS structures designed to redistribute prepayment risk among various investor groups.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"How_Mortgage-Backed_Securities_Affect_the_Housing_Market_and_Economy\"><\/span>How Mortgage-Backed Securities Affect the Housing Market and Economy<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>MBS<\/strong> have a significant impact on the availability of mortgage credit and the broader economy. Here are some key points to consider:<\/p>\n<ul>\n<li><strong>Increased Liquidity:<\/strong> By enabling lenders to sell mortgages, MBS provide liquidity, allowing banks to free up capital and make new home loans.<\/li>\n<li><strong>Interest Rate Influence:<\/strong> Fluctuations in the MBS market can affect mortgage interest rates, impacting affordability for homebuyers.<\/li>\n<li><strong>Economic Indicators:<\/strong> The performance of mortgage-backed securities can signal the health of the housing market and the economy.<\/li>\n<\/ul>\n<p>However, the mortgage-backed securities market can also amplify risks, as seen during the 2007\u20132008 financial crisis, where improper underwriting and high-risk mortgage products contributed to massive defaults and a market collapse.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_Are_the_Risks_of_Investing_in_Mortgage-Backed_Securities\"><\/span>What Are the Risks of Investing in Mortgage-Backed Securities?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Investing in mortgage-backed securities involves several risks that potential investors should be aware of:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Prepayment_Risk\"><\/span>Prepayment Risk<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>When interest rates drop, homeowners tend to refinance their mortgages, paying them off earlier than expected. This leads to <strong>prepayment risk<\/strong> where investors receive their principal back sooner but may have to reinvest at lower interest rates.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Credit_Risk\"><\/span>Credit Risk<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There is a possibility some borrowers will default on their loans, which can affect the MBS&#8217;s returns. Agency MBS are usually less exposed to this risk, thanks to government backing, while non-agency MBS carry higher credit risk.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Interest_Rate_Risk\"><\/span>Interest Rate Risk<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Mortgage-backed securities are sensitive to changes in interest rates. Rising rates may reduce the market value of MBS and alter expected cash flows.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Market_and_Liquidity_Risk\"><\/span>Market and Liquidity Risk<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The market for certain MBS may become less liquid during times of financial stress, making it harder to sell without affecting the price.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Who_Invests_in_Mortgage-Backed_Securities\"><\/span>Who Invests in Mortgage-Backed Securities?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Various types of investors find mortgage-backed securities attractive:<\/p>\n<ul>\n<li><strong>Pension Funds and Insurance Companies:<\/strong> Seek steady income streams.<\/li>\n<li><strong>Mutual Funds and ETFs:<\/strong> Provide retail investors with access to diversified MBS holdings.<\/li>\n<li><strong>Hedge Funds and Institutional Investors:<\/strong> May invest in more complex MBS structures to capture higher returns.<\/li>\n<li><strong>Individual Investors:<\/strong> Often invest indirectly through mutual funds or exchange-traded funds (ETFs) focused on mortgage securities.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Regulation_and_Oversight_of_Mortgage-Backed_Securities\"><\/span>Regulation and Oversight of Mortgage-Backed Securities<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>After the 2008 financial crisis, regulation around mortgage-backed securities tightened considerably to increase transparency and reduce systemic risks. Key regulatory frameworks include:<\/p>\n<ul>\n<li><strong>Dodd-Frank Act:<\/strong> Imposes stricter rules on mortgage originators and securitizers to ensure better underwriting standards and risk retention.<\/li>\n<li><strong>SEC Requirements:<\/strong> Securities and Exchange Commission mandates disclosures for publicly traded MBS.<\/li>\n<li><strong>GSE Guidelines:<\/strong> Fannie Mae and Freddie Mac have rules on the types of mortgages eligible for securitization.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Evaluate_Mortgage-Backed_Securities\"><\/span>How to Evaluate Mortgage-Backed Securities<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>When evaluating an MBS, investors should consider several critical factors:<\/p>\n<ul>\n<li><strong>Issuer:<\/strong> Agency MBS carry less credit risk than non-agency MBS.<\/li>\n<li><strong>Mortgage Pool Composition:<\/strong> The quality of the underlying mortgages\u2014borrowers\u2019 creditworthiness, loan-to-value ratios, and geographic concentration.<\/li>\n<li><strong>Structure:<\/strong> Some MBS are pass-throughs, while others have tranches with different payment priorities.<\/li>\n<li><strong>Yield and Duration:<\/strong> Analyze expected returns and sensitivity to interest rate changes.<\/li>\n<li><strong>Prepayment Assumptions:<\/strong> Understand how prepayments might affect cash flows.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Why_Understanding_Mortgage-Backed_Securities_Matters\"><\/span>Why Understanding Mortgage-Backed Securities Matters<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Even if you&#8217;re not directly investing in mortgage-backed securities, having a clear understanding helps you:<\/p>\n<ul>\n<li>Grasp how mortgage markets function and how homes are financed.<\/li>\n<li>Comprehend why mortgage interest rates fluctuate.<\/li>\n<li>Recognize the economic signals that MBS performance may reflect.<\/li>\n<li>Stay informed about financial news that impacts housing affordability and investment opportunities.<\/li>\n<\/ul>\n<p>Whether you are planning to purchase a home, considering investing in fixed-income securities, or simply trying to understand the financial landscape, mortgage-backed securities are an important piece of the puzzle.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-236\" src=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-30.webp\" alt=\"Thumbnail Smart Finance (30)\" width=\"800\" height=\"540\" srcset=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-30.webp 800w, https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-30-300x203.webp 300w, https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-30-768x518.webp 768w, https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-30-220x150.webp 220w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Related_Articles\"><\/span>Related Articles<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul class=\"page-generator-pro-related-links page-generator-pro-related-links-columns-1 page-generator-pro-related-links-prev-next page-generator-pro-related-links-vertical\"><li class=\"prev\">\n                            <a href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2814\/\" title=\"What is a business credit card?\">What is a business credit card?\n                            <\/a>\n                        <\/li><li class=\"next\">\n                            <a href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/2837\/\" title=\"What is a cashback credit card?\">What is a cashback credit card?\n                            <\/a>\n                        <\/li><\/ul>\n<p>Our HOME in English: <a href=\"https:\/\/finance.familiaeabiblia.com.br\/\" target=\"_blank\" rel=\"noopener\">Smart Finance: Learn, Invest, and Grow<\/a><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-233\" src=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-27.webp\" alt=\"Thumbnail Smart Finance (27)\" width=\"800\" height=\"540\" srcset=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-27.webp 800w, https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-27-300x203.webp 300w, https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-27-768x518.webp 768w, https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-27-220x150.webp 220w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Our_Categories\"><\/span>Our Categories:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul class=\"wp-block-list\">\n<li>\ud83d\udcb3 <a href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/\">Credit Cards<\/a>: Comparisons, reviews, and tips to choose the best card for your profile \u2014 cashback, travel rewards, no annual fee, and more.<\/li>\n<li>\ud83c\udfe6 <a href=\"https:\/\/finance.familiaeabiblia.com.br\/digital-banks\/\">Digital Banks<\/a>: Practical guides and evaluations of digital bank accounts, fees, benefits, and services.<\/li>\n<li>\ud83d\udcc8 <a href=\"https:\/\/finance.familiaeabiblia.com.br\/investing\/\">Investments<\/a>: Beginner guides, fixed income and variable income options, real estate investment trusts (REITs), and more.<\/li>\n<li>\ud83e\uddee <a href=\"https:\/\/finance.familiaeabiblia.com.br\/financial-education\/\">Financial Education<\/a>: Learn to manage your budget, build an emergency fund, and get out of debt.<\/li>\n<li>\ud83d\ude97 <a href=\"https:\/\/finance.familiaeabiblia.com.br\/loans-financing\/\">Loans and Financing<\/a>: Explanations about mortgage, auto, and student loans, with smart money-saving tips.<\/li>\n<li>\ud83d\udee1\ufe0f <a href=\"https:\/\/finance.familiaeabiblia.com.br\/insurance\/\">Insurance<\/a>: Information about the most important types of insurance to protect your family and assets.<\/li>\n<li>\ud83d\udcca <a href=\"https:\/\/finance.familiaeabiblia.com.br\/taxes-income\/\">Taxes and Income<\/a>: Guidance on tax filing, investment taxation, and fiscal responsibilities.<\/li>\n<li>\ud83c\udfd6\ufe0f <a href=\"https:\/\/finance.familiaeabiblia.com.br\/retirement-planning\/\">Retirement Planning<\/a>: Tips to plan your retirement with private retirement plans, Social Security benefits, and passive income strategies.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-240\" src=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-34.webp\" alt=\"Thumbnail Smart Finance (34)\" width=\"800\" height=\"540\" srcset=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-34.webp 800w, https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-34-300x203.webp 300w, https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-34-768x518.webp 768w, https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-34-220x150.webp 220w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_a_Cash_Advance_on_a_Credit_Card\"><\/span>What is a Cash Advance on a Credit Card?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>When unexpected expenses arise, a cash advance on your credit card can offer quick access to money without the need for a loan application. A cash advance allows you to withdraw cash from your credit card account, often through an ATM, bank, or convenience check. While this option provides immediate funds, it&#8217;s important to understand the costs involved, such as higher interest rates and fees, to make informed financial decisions that suit your needs.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions_About_Cash_Advances_on_Credit_Cards\"><\/span>Frequently Asked Questions About Cash Advances on Credit Cards<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"What_exactly_is_a_cash_advance_on_a_credit_card\"><\/span>What exactly is a cash advance on a credit card?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A cash advance is when you withdraw cash using your credit card, either through an ATM or bank. It\u2019s essentially a short-term loan from your credit card issuer.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Can_I_get_a_cash_advance_from_any_credit_card\"><\/span>Can I get a cash advance from any credit card?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Most credit cards offer cash advances, but terms vary. Check your cardholder agreement to confirm availability and limits.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_much_can_I_withdraw_as_a_cash_advance\"><\/span>How much can I withdraw as a cash advance?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Cash advance limits are usually lower than your total credit limit and vary by issuer. Check your credit card\u2019s cash advance limit.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Are_there_fees_associated_with_cash_advances\"><\/span>Are there fees associated with cash advances?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Yes, cash advances usually come with a fee, typically 3\u20135% of the withdrawn amount or a flat fee, whichever is higher.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Do_cash_advances_have_different_interest_rates\"><\/span>Do cash advances have different interest rates?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Yes, they generally have higher interest rates than regular purchases and interest starts accruing immediately.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_there_a_grace_period_on_cash_advances\"><\/span>Is there a grace period on cash advances?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>No, unlike purchases, cash advances begin accruing interest from the day you withdraw the cash.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Can_I_use_a_cash_advance_to_pay_bills\"><\/span>Can I use a cash advance to pay bills?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Yes, you can use cash advances for payments, but it\u2019s better to explore lower-cost options first due to fees and interest.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Are_cash_advances_reported_to_credit_bureaus\"><\/span>Are cash advances reported to credit bureaus?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Yes, your credit card issuer reports your balance, including any cash advances, which can impact your credit utilization.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_quickly_do_cash_advance_fees_and_interest_add_up\"><\/span>How quickly do cash advance fees and interest add up?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Fees are charged immediately, and interest compounds daily, so costs can grow quickly if not paid off promptly.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Can_I_avoid_cash_advance_fees\"><\/span>Can I avoid cash advance fees?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Avoiding them is tough since fees are standard. Instead, pay off the balance quickly to minimize interest charges.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Are_cash_advances_a_good_idea_for_emergencies\"><\/span>Are cash advances a good idea for emergencies?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>They can help in emergencies but should be used sparingly due to high costs compared to other borrowing methods.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Can_I_get_a_cash_advance_online\"><\/span>Can I get a cash advance online?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Some issuers allow convenience checks or transfers online, but typically cash advances require ATM or bank withdrawal.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Will_a_cash_advance_affect_my_credit_score\"><\/span>Will a cash advance affect my credit score?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Taking a cash advance increases your balance and utilization, which could lower your credit score temporarily.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_can_I_check_my_cash_advance_balance\"><\/span>How can I check my cash advance balance?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Check your account online, on your statement, or by contacting your credit card issuer directly.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_there_a_better_alternative_to_cash_advances\"><\/span>Is there a better alternative to cash advances?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Yes, consider personal loans or credit card balance transfers, which often carry lower fees and interest rates.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Cash advances on credit cards<\/strong> provide quick access to cash when you need it most, making them a useful tool for immediate financial needs. However, they come with significant costs, including high fees and interest rates that start accruing immediately with no grace period. Understanding these factors is crucial before opting for a cash advance. Always review your credit card\u2019s terms and think about alternative financing options to avoid unnecessary expenses. When used responsibly and paid off quickly, cash advances can serve as a helpful financial stopgap, but relying on them long-term can impact your credit and lead to costly debt. By staying informed and cautious, you can make the most of your credit card\u2019s cash advance feature and manage your finances effectively.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-235\" src=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-29.webp\" alt=\"Thumbnail Smart Finance (29)\" width=\"800\" height=\"540\" srcset=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-29.webp 800w, https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-29-300x203.webp 300w, https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-29-768x518.webp 768w, https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-29-220x150.webp 220w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Also_discover\"><\/span>Also discover<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong><a href=\"https:\/\/finance.familiaeabiblia.com.br\/glossary\/\" target=\"_blank\" rel=\"noopener\">Glossary Finance<\/a><\/strong><\/li>\n<li><strong><a class=\"row-title\" href=\"https:\/\/finance.familiaeabiblia.com.br\/faq-finance\" target=\"_blank\" rel=\"noopener\" aria-label=\"\u201cFAQ \u2013 Frequently Asked Questions\u201d (Edit)\">FAQ \u2013 Frequently Asked Questions<\/a><\/strong><\/li>\n<li><a href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/\">Credit Cards &#8211; GLOSSARY<\/a><\/li>\n<li><a href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/faq-credit-cards\">Credit Cards &#8211; FAQ<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>What is a cash advance on a credit card? Understanding Mortgage-Backed Securities (MBS): A Comprehensive Glossary Article Mortgage-Backed Securities, often abbreviated as MBS, play a crucial role in the American financial market, particularly within the real estate and investment sectors. Whether you\u2019re an investor, a homeowner, or simply interested in finance, understanding what mortgage-backed securities &hellip;<\/p>\n","protected":false},"author":3,"featured_media":230,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[54],"tags":[],"class_list":["post-2854","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-glossary-credit-cards"],"_links":{"self":[{"href":"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-json\/wp\/v2\/posts\/2854","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-json\/wp\/v2\/comments?post=2854"}],"version-history":[{"count":1,"href":"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-json\/wp\/v2\/posts\/2854\/revisions"}],"predecessor-version":[{"id":5079,"href":"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-json\/wp\/v2\/posts\/2854\/revisions\/5079"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-json\/wp\/v2\/media\/230"}],"wp:attachment":[{"href":"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-json\/wp\/v2\/media?parent=2854"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-json\/wp\/v2\/categories?post=2854"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-json\/wp\/v2\/tags?post=2854"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}