Cash advances are a feature many cardholders misunderstand. A cash advance allows you to withdraw cash from an ATM using your credit card, but it comes with significant downsides. Unlike regular purchases, cash advances often begin accruing interest immediately with no grace period, and the APR is usually higher than the rate for purchases. On top of that, issuers typically charge a fee — often $10 or 5% of the transaction, whichever is greater. Because of these costs, financial experts generally advise against using cash advances except in true emergencies. They are a convenience feature, but one with steep costs attached.