Almost every credit card gives you the ability to withdraw cash. You can access a cash advance from a credit card by using it at an ATM. Below are 3 reasons to avoid using the cash advance facility wherever possible.1. High Interest Rate & Fees.
The cash advance interest rate for a credit card is usually much higher than the regular interest rate for purchases. For example, the low interest Aussie Mastercard has a variable interest rate for purchases (after an introductory 2.99% p.a.) of 12.29% p.a. yet the cash advance is a variable interest rate of currently 18.79% p.a. On top of the higher interest rate most lenders will charge either a set or % fee when you take a cash advance.

2. No interest free days.
Credit card issuers usually don’t allow a grace period for cash advances. This means that interest starts accumulating as soon as you take the cash advance. Most people are accustomed to purchasing with their credit cards, and then paying the bill, when their statement arrives. This is not good if you have taken a cash advance because interest keeps accumulating every day it is outstanding.

3. Repayments may be applied to your balance or low interest purchases first:
Credit cards issuers will apply your repayments towards any outstanding balance and in some instances purchases first, before the higher rate cash advance. Here’s an example. You have a credit card that has an interest rate of 12.99% on regular purchases, and 19.99% on cash advances. You purchase items worth $50 and take a cash advance of $50. You pay $50, when your balance becomes due. Many lenders will apply this payment to the low interest balance of the purchase first so you will still have $50 outstanding from your cash advance, on which interest will be charged daily at a higher rate of 19.99%.