Cash Advance on a Credit Card: What It Really Costs
| Common fee | Greater of $10 or 5% (CFPB review of card agreements) |
|---|---|
| Interest starts | The day you take the cash |
| Grace period | Generally none for cash advances |
| Most common cash advance APR in CFPB review | 30% |
| Limit | Usually a portion of your credit line |
| Alternative | $100–$5,000 loan requests through our network |
How a credit card cash advance works
A cash advance borrows cash from your credit card's line instead of using it to buy something. You can take one at an ATM with your card PIN, at a bank teller window with your card and ID, or sometimes with a convenience check your issuer mails you. The amount is added to your card balance right away.
Three things make it different from a purchase, according to the CFPB: there's usually a fee, the interest rate is commonly higher than your purchase rate, and interest starts as soon as you withdraw the money. The grace period that lets you avoid interest on purchases by paying in full generally doesn't apply to cash advances. ATM owners may add their own fee on top.
Cash advance fee and interest calculator: the math
You can work out the cost yourself with three numbers from your card statement: the cash advance fee, the cash advance APR and how many days you'll carry the balance.
- Fee = the greater of the flat minimum or the percentage. With "$10 or 5%": a $100 advance costs $10; a $400 advance costs $20.
- Daily interest = amount × APR ÷ 365. On $400 at 30%: 400 × 0.30 ÷ 365 = $0.329 a day.
- Interest for your period = daily interest × days. For 30 days: $0.329 × 30 = $9.86.
- Total cost = fee + interest. $20 + $9.86 = $29.86, so you'd owe $429.86.
The CFPB's own example lands in the same place: a $400 advance held for a month at 30% adds about $10 in interest on top of a $20 fee. Issuers compute interest on your average daily balance, so your statement may differ by a few cents.
Sample costs at a 30% cash advance APR
Examples assume a fee of the greater of $10 or 5% and a 30% cash advance APR held for 30 days. Your card's terms may differ.
| Advance | Fee | 30 days' interest | Total cost | Balance owed |
|---|---|---|---|---|
| $100 | $10.00 | $2.47 | $12.47 | $112.47 |
| $200 | $10.00 | $4.93 | $14.93 | $214.93 |
| $400 | $20.00 | $9.86 | $29.86 | $429.86 |
| $1,000 | $50.00 | $24.66 | $74.66 | $1,074.66 |
Interest keeps adding up every day until the advance is paid off, so carrying it for three months instead of one roughly triples the interest. Paying it off quickly keeps the cost closest to the fee alone.
Cash advance vs. a payday loan
Both put cash in your hands fast, but they're priced differently. A card advance charges a fee plus daily interest on an open balance. A payday loan charges a set fee per $100 borrowed, capped by state law, and is repaid in one payment on your next payday.
| Credit card cash advance | Payday loan | |
|---|---|---|
| Needs | A credit card with available cash advance limit | ID, income and a checking account |
| Cost on $400 for about a month | $29.86 in the example above | Fee per $100 set by state law; at $15 per $100 for two weeks, $60 |
| Repayment | Part of your card balance; minimum payments | One payment on your next payday |
| Credit check | Already done when you got the card | Many lenders focus on income and may use alternative credit data |
If you have a card with room on it, an advance can be a quick fit for a small amount you can pay back soon. If you don't have a card, your cash advance limit is too low, or your card is near its limit, a loan request through our network is the fast route.
How much will I repay?
Estimate only. Your lender shows your exact cost before you sign.
See if you qualify — it takes about 3 minutes. Start your free request. There is no obligation to accept an offer.
How much can you take as a cash advance?
Your cash advance limit is usually a portion of your total credit line, not the full amount, and it's printed on your statement or in your card app. ATMs also set daily withdrawal caps. The fee and any ATM charge count against your available credit, so a $500 advance with a $25 fee uses $525 of your line. If you're close to your limit, the advance may be declined.
Cash advance on a debit card
A "cash advance" on a debit card isn't a loan. It's a withdrawal from your own checking account, at an ATM or a bank teller. There's no interest, though out-of-network ATMs and the ATM owner may each charge a fee, and you can only take what's in your account (plus any overdraft coverage you've opted into, which has its own fees). If your account is short, you'll need a different source, such as a short-term loan or an app advance. Compare options in payday loan vs. cash advance and cash advance apps.
No card or not enough room? Get cash through our network
Zebra Finance is a free loan-matching service, not a lender. One short form, about 3 minutes, reaches lenders in our network that serve your state, with requests from about $100 to $5,000. Many lenders decide within minutes, and approved funds are often in your account by the next business day. No hard credit inquiry on our end; lenders may check your credit. Your lender shows the exact fee, APR and total to repay before you sign, and you can say no.
Need more time to repay than one paycheck? Ask about an installment loan with fixed payments.
See if you qualify — it takes about 3 minutes. Free to use, and there is no obligation to accept an offer.
Frequently asked questions
How much does a cash advance on a credit card cost?
Usually a fee plus interest from day one. A CFPB review of card agreements found most issuers charge the greater of $10 or 5%, and the most common cash advance APR was 30%. On $400 held 30 days, that's a $20 fee plus about $9.86 in interest, $29.86 total.
How do you calculate cash advance interest?
Multiply the amount by your cash advance APR, divide by 365 to get daily interest, then multiply by the number of days you carry the balance. For $200 at 30% for 30 days: 200 × 0.30 ÷ 365 × 30 = $4.93. Add the fee for your total cost.
Is there a grace period on a credit card cash advance?
Generally no. The CFPB says interest on a cash advance starts as soon as you withdraw the money. Grace periods usually apply only to purchases, so paying your statement in full doesn't avoid interest on an advance.
Does a cash advance hurt your credit?
A cash advance isn't reported separately, but it raises your card balance, which increases your credit utilization and can lower your score until you pay it down. Making at least the minimum payment on time protects your payment history.
Can you get a cash advance on a debit card?
Using a debit card at an ATM or bank teller is a withdrawal from your own checking account, not a loan. There's no interest, but ATM fees may apply and you can only take what's in the account. If your balance is short, a short-term loan through our network can help.
Is a cash advance or a payday loan better?
If you have a card with enough cash advance room and can repay quickly, an advance can work for a small amount. If you don't have a card or your limit is too low, a payday or installment loan through our network is a fast option. Your lender shows the full cost before you sign.
Sources
- CFPB — Can I withdraw money from my credit card at an ATM?
- CFPB — What is a grace period for a credit card?
- CFPB Data Spotlight — Credit card cash advance fees