Cash advance
Borrowing cash against your card. It usually has an upfront fee, no grace period, and a higher APR, so interest starts on day one.
Between the fee and day-one interest, treat cash advances as a last resort.
Common questions
Why are credit card cash advances so expensive?
Three costs stack at once: an upfront fee, typically around 3% to 5% of the amount with a minimum charge; a cash advance APR that is usually higher than the purchase APR; and no grace period, so interest accrues from day one. A small advance can cost far more than its size suggests.
Does a cash advance hurt my credit score?
Not directly - credit reports do not flag a balance as a cash advance. The indirect effect is real, though: the advance plus its fee raises your balance and therefore your reported utilization, and the fast-accruing interest makes the balance harder to clear.
What counts as a cash advance?
ATM withdrawals on a credit card are the obvious case, but issuers also treat convenience checks, wire transfers, money orders, casino chips, and often peer-to-peer or crypto purchases the same way. Check the terms before treating a card like cash - the classification is the issuer's, not yours.