Quick answer
A credit card cash advance borrows against your card's cash limit, with a fee and usually a higher APR than purchases, and interest starts immediately. A payday loan charges $10 to $30 per $100 for about two weeks, often an APR near 400%. A cash advance usually costs less, but both are expensive ways to borrow.
"Cash advance" can mean a few things. This page compares the two most common: a credit card cash advance and a payday loan.
Side by side
| Credit card cash advance | Payday loan | |
|---|---|---|
| Where the money comes from | Your card's cash advance limit | A payday lender |
| Fees | Flat fee or a percentage, plus possible ATM fees | $10 to $30 per $100 |
| Interest | Usually a higher APR than purchases | Expressed as a fee; APR near 400% at $15 per $100 |
| When interest starts | Right away, no grace period | Fee is due with the loan |
| Repayment | Monthly card payments | Lump sum on next payday |
| Credit impact | Raises card utilization | Generally not reported unless in collections |
Based on CFPB guidance on cash advances and payday loans.
When each might make sense
- Cash advance: You already have a card with available cash limit and can repay within a cycle or two.
- Payday loan: Rarely the best choice. If you are considering one, look at alternatives to payday loans first.
What about cash advance apps?
Many apps call their product a cash advance. These are usually paycheck advances or earned wage access, with fees, subscriptions or tips instead of interest. See paycheck advance.
Read more about card advances in what is a credit card cash advance.
If you need more time than one paycheck, compare installment loans, which spread the cost over months with APRs on our network from 5.99% to 35.99%. Check eligibility there or call (800) 236-7761.
Payday, cash advance and title products are high-cost short-term credit. They are intended for short-term needs only and are not a long-term solution. This page does not match you for payday loans. Rates and examples are illustrations; a lender's written disclosure shows your actual terms, and approval is never guaranteed.
Frequently asked questions about payday loan vs cash advance: which costs less?
Is a cash advance the same as a payday loan?
No. A credit card cash advance draws on your card's credit line. A payday loan is a separate short-term loan due on your next payday. Some lenders and apps use the term cash advance for payday-style products, so read the terms.
Does a cash advance hurt my credit?
It adds to your card balance, which raises utilization. A payday loan generally is not reported to the major credit bureaus unless it goes to collections.
How much does a credit card cash advance cost?
The CFPB says you may pay a flat fee or a percentage of the advance, possibly ATM fees, and usually a higher APR than for purchases, with interest from the day you withdraw.
Which is better in an emergency?
Usually the cash advance, if you can repay it quickly. Cheaper still are credit union PALs and installment loans.
Sources
- CFPB: Can I withdraw money from my credit card at an ATM? (accessed 2026-10-09)
- CFPB: What is a grace period for a credit card? (accessed 2026-10-09)
- CFPB: What is a payday loan? (accessed 2026-10-09)
- CFPB: What is an APR and why is it higher than the interest rate for my payday loan? (accessed 2026-10-09)
- CFPB: Can taking out a payday loan help rebuild my credit? (accessed 2026-10-09)
Last updated 2026-10-09. How we research and update pages.