Although there are a couple of cards that charge nominal cash advance fees, they are typically substantial. A cash advance fee is usually expressed as a percentage of the transaction—10% is common—but with a minimum dollar amount. So if you withdrew cash in the amount of $500, it would be subject to a $50 cash advance fee, because 10% of $500 is $50. However, even if you only withdrew $10, the minimum dollar amount for a charge might be $5, making the charge for the $10 withdrawal $5 instead of $1. The interest rates on cash advances are almost always higher than the interest rates on a typical credit transaction. Before you decide to make a cash withdrawal, make sure you know the interest rate and can afford it. It isn’t uncommon to see interest rates of 20% and more for cash advances, which is extraordinary. Many a sensible person has become financially ensnared by a high interest rate. Make sure you’ll be able to easily pay the cash advance back before you make the withdrawal. Unlike most credit card transactions, the interest on cash advances begins to accrue immediately. While it’s always important to pay off your credit card balance as quickly as possible, this goes double for a cash advance. You will need to pay the minimum payment on your regular credit card balance before any payment can go toward paying off your cash advance. Any additional payment will then go to the highest interest rate balance on your card. So if the interest rate on your regular credit card balance is 4% and the interest rate on your cash advance is 20%, the payment must be applied to paying off the cash advance balance. A lot of people will have other alternatives to a credit card cash advance—probably the only type of loan more unfriendly to the borrower than a cash advance is a payday loan. You should consider any of the following before you take a cash advance:  Getting a personal loan. It will take a little longer than a credit card cash advance, but the interest rate will be much lower than a cash advance (by as much as half). Furthermore, you can usually get a personal loan for a larger amount. Personal loans are available through banks and credit unions. Applying for a HELOC. A Home Equity Line of Credit (HELOC) is a line of credit in the same amount as the equity in your home. It is like a second mortgage, but you aren’t obligated for all of the equity in your home, and it has an expiration date. They’ll take much longer to apply for than a cash advance, but they’ll be far less expensive. ref>http://ptmoney.com/credit-card-cash-advance-bad-financial-move-or-good-emergency-plan/</ref> Interest paid on a HELOC is deductible from income tax.
Don’t forget about the cash advance fee. Check the interest rate. Determine whether you can start to pay right away. Consider your alternatives.