 TITLE: What Is a Cash Advance and How Does It Work? CONTENT: Common Cash Advance Fees\n------------------------\nCredit card cash advances usually come with high fees. Read your cardholder agreement to learn how much a cash advance will cost you before you consider borrowing one.\nHere are the typical fees to expect:\n*   **Cash advance APR**: This can be much higher than the regular APR charged on regular purchases.\n*   **Cash advance fee**: A common fee is 5% of the amount advanced or $10, whichever is higher.\n*   **ATM or bank fee**: Banks, credit unions or ATMs may charge a cash advance fee separate from the credit card company's fees.\nRegular credit card purchases give you a grace period to repay the balance before interest starts accruing that typically lasts from the last day of your billing period to the date your payment is due. You don't get this luxury with cash advances; interest begins accruing the day you receive the cash advance.\nWhen you get a cash advance on a credit card with an outstanding balance, your payments may be used to repay the purchase balance (which has a lower interest rate) before being applied to the cash advance balance (which has a higher interest rate). Contact your card issuer to find out.\nIf you have several credit cards, minimize the cost of a cash advance by using the card with the lowest cash advance APR and not using a card with a high balance. END