A cash advance is a cash loan from a credit card, using an ATM, a bank withdrawal or “convenience” checks. Credit card cash advances have many disadvantages for consumers. Generally, you cannot take a cash advance for the full amount of your available credit. The interest rate on cash advances is often significantly higher than it is on purchases or balance transfers. A transaction fee, which is a percentage of the cash advance, is usually charged. There is typically no grace period for cash advances.