New Delhi, April 15 -- With a credit card, the idea of taking a cash withdrawal or cash advance may seem suitable when facing financial challenges. However, grasping what it means when you do this is important, especially if you are concerned about your credit score and overall financial health.

Cash advances let you withdraw cash from your credit card, up to a pre-set limit. Cash advances are typically more expensive, with higher rates and fees than general purchases. They also typically start accruing interest immediately, while purchases may not accrue interest for a grace period.

Regular cash advances may be interpreted by certain lenders as an indication of poor money management. This, in turn, may influence the lenders to either p...