CardTrak.com - Most Trusted Source of Credit Cards Since 1986

Why is taking a cash advance on a credit card expensive?

-- There are higher costs including processing and fraud associated with cash advances. Most issuers charge an upfront fee of 3%-5% which may be subject to a minimum or maximum fee, plus the interest rate is usually much higher than the purchase APR, and there is rarely a grace period or interest-fee period for cash advances.