Cash advances are a great and convenient method for obtaining money you don't currently have, but you will need in the near future. A downside is that the fee for obtaining a cash advance is higher than an ATM fee, up to $5 or $10 for each cash advance. Normally, credit cards offer a grace period before payments must be received, except in the case of cash advances which does not offer a grace period (another downside). The interest for the cash advance is accrued from the day of the cash advance until the payment is received. Also the interest may be higher for the cash advance when compared to the other of charges from purchases at stores. Read the fine print for your credit card and pay the cash advance as soon as you have the money to reduce the interest payments.


Return to Credit Card Management Topics.