 TITLE: Personal Loan vs. Cash Advance: Which Is Best? CONTENT: How Does a Credit Card Cash Advance Work?\n-----------------------------------------\nA credit card cash advance is a short-term loan provided by your credit card issuer, rather than by a traditional or online lender. On your credit card statement, you'll find your individual cash advance limit, which will likely be smaller than your card's credit limit. You can generally withdraw a cash advance at an ATM with your credit card, via a check sent to you by the issuer or in person at a bank.\nWhile you won't have to go through the process of applying for a personal loan with a new lender, you'll pay credit card cash advance fees and interest. Card issuers charge an initial fee, often 3% to 5% of the cash advance amount, and the bank or ATM will typically also charge a fee for their end for the transaction.\nAdditionally, interest rates on cash advances are often higher than a card's interest rate for purchases. For instance, the Chase Freedom Unlimited® card charges 14.99% to 23.74% variable APR on purchases, but a variable 24.99% APR on cash advances. On top of it all, credit card issuers may start charging interest as soon as you take out a cash advance, which can cause them to get costly fast. END