Credit card companies in turn are increasingly willing to loan cash. It can be a very valuable service for their customers. But credit card companies are also increasing the interest charges for cash advance.

When you use your credit card for purchases those products are yours to keep. You can use them for years to come and pay for them over a few months if you wish. But when you use your credit card for cash advance  you will pay much more for that privilege. And you will have to give it all back as quickly as you can. Most credit cards charge interest immediately on cash advance where you can receive up to 55 days interest free on most cards on Purchases

Why does a credit card company with a typical 12% p.a charge for goods and services charge nearly 20% p.a  plus fees for cash? They say that it is because cash transactions cost more to process than other purchases, and because frequent users of cash advance are more likely to default in repayment of their loans

Cash advance can be very useful in many cases, especially those that give you flexibility in managing your day-to-day life. But you have to plan ahead if you are going to use the service. First, be sure you understand the rules and fees. Second, save on interest charges by having a plan in place to repay the money and its additional fees and interest ASAP. Credit card companies will be the first to tell you that this is a service to be used only as necessary and with a disciplined schedule for repayment. They know that those borrowers who don't have a plan to repay the cash advance in a timely way are more likely to fail to repay it at all.
 
The use of Debit Cards, which take the money from your own assets rather than borrow it are growing more popular in Australia.