Cash Advance
A cash advance is borrowing cash against your credit card, usually at an ATM. It's one of the most expensive ways to borrow: a separate, higher APR, an upfront fee, and no grace period — interest starts accruing the moment you take the money.
Three charges stack up at once, which is what makes cash advances the most expensive routine use of a credit card. A transaction fee of roughly 3–5% of the amount, or $10 minimum, is charged immediately. The advance APR is usually several points above the purchase APR. And there is no grace period, so interest accrues from the day of the withdrawal rather than from the statement date — meaning even an advance repaid within a week still costs money. Payments are generally applied to the lower-rate balance first, so a card carrying both purchases and an advance keeps the expensive part alive longest. An emergency fund exists precisely to make this unnecessary.