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What is the exact difference between a credit card cash advance and a purchase?

When you withdraw physical cash from an ATM using a credit card why do banks charge higher interest rates immediately without a grace period?

banking finance money
F
FinBasic
asked 1mo ago · 10 rep

1 Answer(s)

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Purchases have a grace period before interest accumulates. Cash advances incur higher interest rates starting the exact day you withdraw cash, plus upfront fees.

B
BankerJoe answered 1mo ago

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