March 23, 2026
Written by Rebecca Safier
Certified Student Loan Counselor
Certified Student Loan Counselor
Rebecca Safier, CCC, is a personal finance writer. Her work has been published in U.S. News & World Report, MarketWatch, NextAdvisor, Yahoo Finance, and other publications, and she has contributed expert commentary to Entrepreneur, Money.com, NBC, and more. When she's not covering all things personal finance, Rebecca teaches blogging strategies on her website, Remote Bliss.
A credit card cash advance lets you borrow cash against your credit limit, but it comes with higher fees and interest rates than regular credit card purchases.
Cash advance fees typically range from 3% to 5% of the amount you borrow, plus you'll face a higher APR with no grace period – meaning interest starts accruing immediately.
Taking out a cash advance can hurt your credit score by increasing your credit utilization ratio, especially if it pushes it over 30%.
Alternatives like cash advance apps, salary advances, or personal loans often cost less than credit card cash advances.
If you need quick access to cash, you may be able to borrow from your credit card with a cash advance. While cash advances can be a convenient way to take out money, they're an expensive borrowing option due to cash advance fees and high APRs.
A cash advance fee may be a percentage of the amount you borrow or a flat charge, usually whichever is higher. Here's a closer look at credit card cash advance fees so you know what costs to expect if you borrow from your credit limit.
A credit card cash advance is a type of loan that lets you borrow cash directly from your credit card's available credit limit. Instead of using your card to buy something, you're withdrawing physical money – but unlike a debit card withdrawal, you're borrowing from your credit card issuer, not accessing your own funds. This means you'll need to pay back the amount with interest and fees, just like any other credit card charge.
Credit card cash advances let you borrow money against your available credit limit. The process works just like taking out a loan – you access the cash, then pay it back through your regular credit card bill, along with interest and fees.
There are typically three main ways to get a cash advance:
Withdraw money from an ATM: You may be able to take out a cash advance at an ATM. You'll use your credit card and a personal identification number, or PIN, that you set up with your credit card issuer. Getting a cash advance at an ATM is not the same as using a debit card to take out money from your bank account.
Request a convenience check: Another option is requesting a convenience check from your credit card issuer. You can fill out your name as the payee if you want to deposit the check into your bank account. Alternatively, you can fill out the check to another person or organization.
Take out money in-person: If your credit card company has a local branch, you may also be able to get a cash advance in person. Remember to take your ID with you.
Cash advances tend to be costly due to high interest and fees. You'll pay an upfront fee plus face a higher annual percentage rate, or APR, than your regular purchase APR.
Here's a closer look at the charges you can expect for a cash advance:
Cash advance APR: While credit cards already come with a high APR on purchases, the APR tends to be even higher on cash advances. On the Discover it Cash Back credit card, for example, the purchase APR is 17.24% to 26.49%, depending on your creditworthiness, while the cash advance APR is 28.24%.
No grace period: Cash advances don't have a grace period, so interest starts growing right away. By contrast, you usually have a grace period of at least 21 days to pay off your purchase charges before the card charges interest.
Cash advance fee: The credit card issuer also charges a fee to take out a cash advance. Fees vary by issuer, but a typical cash advance fee is 3% to 5% of the advance amount or $10, whichever is greater.
ATM or bank fee: If you take out a cash advance at an ATM, you may also be subject to a fee of a few dollars from the ATM or your bank.
Separate credit limit: You may only be able to borrow up to a percentage of your credit line. If your card has a $10,000 limit and you have a cash advance limit of 30%, for example, you can only borrow up to $3,000.
No rewards: While some credit cards come with cash back rewards on your spending, you won't earn any cash back or travel points for taking out a cash advance.
The cost of a cash advance will depend on the amount you borrow, your cash advance fee, and your cash advance APR. Here's an example of how much a $1,000 cash advance would cost with a 5% fee and 29.99% APR, assuming you paid it off over six months.
6-month payoff | 2-month payoff | |
|---|---|---|
Monthly payment | $181.54 | $97.48 |
Cash advance fee | $50 | $50 |
Interest charges | $89.27 | $169.79 |
ATM fee | $2.50 | $2.50 |
Total interest and fees | $141.77 | $222.29 |
As you can see, your monthly payments on a 12-month schedule vs. a six-month term go down, but your interest charges nearly double.
Taking out a cash advance won't show up as a separate negative mark on your credit report, but it can still impact your score. The main factor is your credit utilization ratio – the amount of credit you're using compared to your total limit.
Since a cash advance adds to your balance, it increases your utilization, which can cause your credit score to dip. Most experts recommend keeping your credit utilization under 30% to protect your score.
Plus, if the high fees make it hard to pay your bill on time, a missed payment can hurt your credit history. Late payments can stay on your credit report for up to seven years, so it's worth making a plan to pay off your cash advance quickly.
If you're concerned about your credit, learn more about how to repair credit.
Cash advances work best for true emergencies when you have no other options – building an emergency fund can help you avoid high-cost borrowing:
Emergency car repairs: If your car breaks down and the mechanic only accepts cash, a cash advance could get you back on the road.
Medical expenses: An unexpected medical bill that requires immediate payment might justify the extra cost.
Cash-only vendors: Some landlords, utility companies, or service providers don't accept credit cards.
Avoid using cash advances for everyday expenses or non-essential purchases – the fees can turn a small withdrawal into much larger debt. You can explore lower-cost alternatives like personal loans or payment plans before heading to the ATM.
Here are alternative options that often cost less than cash advances:
Cash advance apps: Cash advance apps offer small-amount, short-term loans that you typically pay back on your next paycheck.
Paycheck advance: Contact your human resources department to find out if your employer can provide a paycheck advance.
Third-party payment services: If you need to make a payment to a third party that doesn't accept credit card payments, there may be services that charge lower fees. Plastiq, for example, will send off payments for you with a 2.99% fee.
Buy now, pay later services: You may be able to spread out the cost of a major purchase with a BNPL service like Affirm. You'll need to pass a soft credit check to qualify, which won't harm your credit.
Personal loan: You can use a personal loan for almost any expense, including major purchases and debt consolidation. Interest rates range from around 7% to 36%, with repayment terms often spanning three to five years.
Loan from a family member or friend: Borrowing money from a relative or someone you trust may also be an option. Consider drafting up a loan agreement so you're both on the same page about repayment.
Cash advances can help when you're in a bind and need money fast, but they're one of the most expensive ways to borrow. You'll want to pay the cash advance back as quickly as possible to minimize costs from upfront fees and immediate interest.
Before you take out a cash advance, compare it against the alternatives we've covered – many options cost significantly less. And if you're looking for ways to boost your income so you can avoid borrowing altogether, check out this guide on ways to get paid instantly.
Most credit cards offer cash advances, but availability depends on your issuer. Check your cardholder agreement or log in to your account to confirm your cash advance limit, which is typically lower than your overall credit limit.
Taking out a cash advance doesn't directly lower your score, but it increases your credit utilization, which can hurt your score. If you miss payments due to the high costs, that can also damage your credit score.
There's no specific deadline for paying back a cash advance – you just need to make minimum monthly payments. However, since interest starts immediately with no grace period, pay it off as fast as possible to minimize costs.
A debit card withdrawal accesses your own money from your checking account. A cash advance borrows money from your credit card company, which you'll repay with interest and fees.
Yes, you can use cash advances to pay bills that don't accept credit cards, like rent or utilities. Just keep in mind the high fees make this an expensive option for regular monthly expenses.
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