Know The True Cost of Cash Advances

There is a transaction fee charged for each cash advance. This fee is usually 2% to 5% of the amount of the transaction. If you do not use designated machines, you may be charged ATM fees on top of that. Also, interest rates on cash advances will be higher than on regular purchases. It is not unusual for a card to charge 16% interest on purchases but 26% on cash advances. Beware, interest starts accruing the from the day you take out the cash advance.