Which of the following best describes a cash advance?

A cash advance is best described as a service that allows you to withdraw cash from your credit card account, which can be done through ATMs or at banks. This feature provides immediate access to cash, but it usually comes with high fees and interest rates that begin accruing immediately from the date of the withdrawal. Unlike regular purchases made with a credit card, cash advances do not have a grace period, meaning interest starts piling up right away.

Other options presented do not correctly define a cash advance. Lower purchase interest rates relate more to standard credit card purchases rather than cash withdrawals. Balance transfers involve moving debt from one credit card to another, which is a separate financial function. Paying off existing debts refers to using funds to settle outstanding balances instead of directly accessing cash from a credit card. Thus, the description of a cash advance aligns specifically with the ability to obtain cash directly from a credit card through designated withdrawal means.