Free, helpful information about Card Guides and related Get a Cash Advance topics.
Get clear and easy-to-understand details about Get a Cash Advance topics and resources.
Answer a few optional questions to receive offers or information related to Card Guides. The survey is optional and not required to access your free guide.
A cash advance is when you borrow money directly from your credit card issuer, typically by withdrawing cash from an ATM, bank teller, or convenience store. It's quick and accessible—but it comes with significant costs that make it fundamentally different from a regular purchase on your card.
When you take a cash advance, you're borrowing against your credit limit just as you would with a purchase. The money goes into your bank account or wallet, and you repay it along with your credit card balance.
The process is straightforward:
Some issuers also allow cash advances through checks, wire transfers, or even peer-to-peer payment apps, depending on your card and account settings.
The real issue with cash advances isn't access—it's price. Three cost factors separate them from ordinary purchases:
Interest rates (APR): Cash advances typically carry a higher APR than your purchase APR. While purchase rates vary widely, cash advance rates are often several percentage points higher. Interest starts accruing immediately—there's no grace period like you get with regular purchases.
Cash advance fees: Most issuers charge a flat fee or percentage of the amount withdrawn, whichever is higher. This upfront cost is added to your balance right away.
No rewards: Unlike purchases made with your card, cash advances typically earn zero rewards or points, even if your card offers cash back or travel miles.
| Factor | Regular Purchase | Cash Advance |
|---|---|---|
| Interest grace period | Usually 21–25 days | None—interest accrues immediately |
| APR | Varies; often lower | Typically higher |
| Fee | None | Usually 2–5% of amount (or flat fee) |
| Rewards | Yes (if applicable) | No |
ATM withdrawals are the most common method. You can use your card at any ATM displaying your card network's logo, though out-of-network ATMs may charge additional fees from the ATM operator.
Bank or credit union teller withdrawals work similarly—you can request cash directly, though you'll typically need to bring your card and PIN.
Balance transfer checks (if your issuer offers them) let you write a check for cash, though this also incurs a fee and higher interest.
Convenience checks sent by your issuer function the same way and carry the same costs.
Peer-to-peer or mobile payment apps sometimes allow cash advances, though fewer cards support this method and terms vary significantly.
Your credit limit sets the ceiling. You can't withdraw more than your available credit, and a cash advance uses that credit just like a purchase does.
Your card's terms determine fees, APR, and available methods. Different issuers structure these differently, so what's available on one card may not be on another.
Your location and timing matter for ATM access. International ATM fees can be substantial if you're traveling, and some ATMs have withdrawal limits regardless of your credit limit.
Your existing balance affects how quickly interest compounds. If you already carry a balance, a new cash advance adds immediately to what you owe.
Cash advances are occasionally necessary—unexpected vehicle repairs, medical emergencies, or situations where only cash is accepted. In true emergencies with no other options, the immediate cost may be worth it.
However, cash advances are rarely the best financial choice for non-emergencies. If you're using them for everyday spending because you've maxed out your credit, or because you need quick liquidity, the compounding costs make your debt harder to escape.
Your specific situation—whether you have emergency savings, alternative borrowing options, and how quickly you can repay—determines whether a cash advance makes sense for you.
