Want to test your luck with the $1.73B Powerball drawing? Don't buy your ticket with a credit card

While it may be tempting to snag a lottery ticket right now as the Powerball Jackpot spikes to $1.73 billion – the second largest in history — buying your ticket with a credit card could cost you.

A lottery ticket purchased with a credit card is likely to be processed as a cash advance, which leaves you with high fees and no rewards.

CNBC Select explains the drawbacks of buying a lottery ticket with a credit card and what to do instead.

A credit card cash advance is when you withdraw money from your credit card, essentially borrowing cash against your card's line of credit. You can typically get a cash advance in various ways, including at an ATM, in person or with a convenience check.

While a cash advance may be convenient when you, say, don't have sufficient funds readily available in your checking account, it will cost you an extra set of fees, such as ATM, bank and cash advance fees. Cash advance fees typically amount to 3% or 5% of the total cash advance withdrawn. For example, a $500 cash advance with a 3% fee will cost you $15.

Cash advances also come with higher interest rates compared to purchases or balance transfers and lack of grace periods. This means you'll start accruing interest from the date of the cash withdrawal.

Most credit card issuers classify lottery ticket purchases as cash-equivalent transactions (despite the terrible odds of you actually winning any money). Capital One, for instance, states on their website that other "money transfers, gambling and quasi-cash transactions" such as lottery tickets or gaming chips may also be classified as cash advances by your credit card issuer. "If you use your credit card for these transactions, you may be charged a cash advance fee and a potentially higher cash advance interest rate."

If you still want to use a credit card to purchase a lottery ticket, it may not even be possible. In a number of states, buying a lottery ticket with a credit card is illegal.

So, your best bet is to use cash which can also help you avoid any extra fees. However, because carrying cash can sometimes be a hassle, you can opt for a debit card. Some debit cards work like credit cards in that they allow you to build credit and earn rewards for your purchases. The Axos Bank CashBack Checking, for example, offers no fees and up to 1% cash back on signature-based transaction purchases.

Before you purchase your lottery ticket, make sure to do so with cash or a debit card instead of a credit card. Purchasing a lottery ticket with a credit card means it'll likely be processed as a cash advance, meaning more fees for you. But you can still benefit from your purchase with a credit card-like debit card that helps you build your credit and earn rewards, like with the Axos Bank CashBack Checking.

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Clarification: This story has been updated to note that buying a lottery ticket with a credit card is illegal in several states.

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