Quick answer
A credit card cash advance is cash borrowed against your card's credit line at an ATM, bank or with a convenience check. It usually costs a fee (often 3% to 5% or a $10 minimum), a higher APR than purchases, and interest that starts the day you take the cash, with no grace period.
A credit card cash advance is a short-term cash loan against your credit card's credit line. You take cash from an ATM, a bank teller or a convenience check, and it shows up on your card balance. It is fast, but it is one of the most expensive ways to use a credit card. Three costs stack up: a cash advance fee, a higher cash advance APR, and interest that starts immediately.
How a cash advance works
- At an ATM: use your credit card and its PIN. The ATM owner may add its own fee.
- At a bank: show your card and ID to a teller.
- With a convenience check: some issuers mail checks that draw on your credit line. These are usually treated as cash advances.
- Cash-like transactions: some cards treat money orders, wire transfers, gambling chips and similar purchases as cash advances. Your card agreement lists them.
Most cards limit how much of your total credit line you can take as cash. That cash advance limit is shown on your statement.
The three costs
1. The cash advance fee
The CFPB explains that card issuers typically charge a fee for cash advances. On many cards it is a percentage of the advance, often 3% to 5%, with a minimum such as $10. The fee is added to your balance on day one, so you pay interest on it too.
2. A higher APR
Most cards have a separate cash advance APR that is higher than the purchase APR. The Federal Reserve reported an average of 22.36% on card accounts assessed interest in August 2026; cash advance APRs on many cards are set several points above the purchase rate. Check your card's pricing table (the "Schumer box") for your exact rate.
3. No grace period
The CFPB notes that a grace period, the time when you can pay a purchase balance in full without interest, generally does not apply to cash advances. Interest starts on the day you take the cash and keeps accruing until it is paid off.
Worked example (clearly labeled)
You take a $500 cash advance. The card charges a 5% fee ($25) and a 29.99% cash advance APR. You repay everything in 60 days.
| Cost | Amount |
|---|---|
| Cash advance fee (5%) | $25.00 |
| Interest, 60 days at 29.99% | about $24.65 |
| Total cost | about $49.65 |
| Effective annual cost | about 60% |
A smaller, faster example: $300 with a $15 fee repaid in 30 days costs about $22 in total, an effective annual cost near 91%. Short advances look cheap in dollars but cost a lot in percentage terms because the fee is a fixed upfront charge. Run your numbers in the payday and cash advance cost calculator.
Cash advance vs payday loan vs PAL
| Option | Typical cost | Notes |
|---|---|---|
| Payday loan | $15 per $100 for 2 weeks; almost 400% APR (CFPB) | Rollovers repeat the fee |
| Card cash advance | Fee plus higher APR, no grace period | Often far cheaper than payday if repaid in a few months |
| Credit union PAL | Max 28% APR, application fee max $20 | Federal credit union members |
A credit union payday alternative loan is usually the cheapest of the three. See payday alternative loans. For more on reading APRs, see APR explained.
How a cash advance affects your credit
The advance itself is not listed separately on your credit report, but it raises your card balance. myFICO lists credit utilization as a major part of the amounts-owed category, about 30% of a FICO Score, so a large advance can lower your score until you pay it down. Late payments would cause more damage.
How to pay it off faster
Federal rules generally require that any amount you pay above the minimum goes to the balance with the highest APR first, which is often the cash advance balance. So paying more than the minimum is the quickest way to stop the cash advance interest. If you can, pay the advance off before your next statement.
Cheaper alternatives to try first
- A credit union PAL (28% APR cap) or a small credit union personal loan.
- A payment plan with the bill you are trying to cover. Utilities, hospitals and many landlords offer them.
- An employer pay advance or earned-wage access with low or no fees. Read the terms.
- Local help through 211 for rent, utilities and food.
- A small installment loan if you need more time to repay. See emergency loans.
"Cash advance" is also used for payday-style loans from storefront and online lenders. Those are a different product. See cash advance for how they are regulated in your state, and payday loan consolidation if you already have several.
Card terms vary. Your card agreement and monthly statement show your actual fee, APR and cash advance limit. This page is general information and not an offer of credit. Short-term, high-cost credit is meant for short-term needs only and is not a long-term solution.
Frequently asked questions about what is a credit card cash advance? fees, apr, options
What is a cash advance on a credit card?
It is a short-term cash loan against your credit card's line of credit. You can get one at an ATM with your card and PIN, at a bank teller, or by using a convenience check from your issuer. The amount is often limited to a portion of your total credit limit.
How much is a cash advance fee?
Card agreements commonly charge a percentage of the advance, often 3% to 5%, or a flat minimum such as $10, whichever is greater. ATM operator fees may apply on top. Your card's pricing table shows the exact fee.
What is the cash advance APR?
Most cards charge a separate cash advance APR that is higher than the purchase APR. The CFPB notes that interest on cash advances usually starts right away, without the grace period that applies to purchases.
Does a cash advance hurt your credit?
The advance itself is not reported separately, but it raises your card balance and credit utilization, which can lower your score until it is paid down. Missing payments would hurt more.
Is a cash advance cheaper than a payday loan?
Usually, yes. A two-week payday loan at $15 per $100 works out to an APR of almost 400 percent, while a card cash advance with fees often lands far lower if repaid within a few months. A credit union payday alternative loan capped at 28% APR is usually cheaper than both.
Sources
- CFPB: Can I withdraw money from my credit card at an ATM? (accessed 2026-10-08)
- CFPB: What is a grace period for a credit card? (accessed 2026-10-08)
- CFPB: What are the costs and fees for a payday loan? (accessed 2026-10-08)
- Federal Reserve G.19 Consumer Credit (interest rates) (accessed 2026-10-08)
- NCUA: 12 CFR 701.21 (Payday alternative loans) (accessed 2026-10-08)
- myFICO: How owing money can impact your credit score (accessed 2026-10-08)
Last updated 2026-10-08. How we research and update pages.